The Luxembourg government previously announced measures relating to the 2017 tax reform—including one that would be intended to encourage the supply of land and homes in Luxembourg, by providing reduced tax rates for gains realized on the disposition of qualifying real estate (other than a taxpayer’s principal residence which would continue to be exempt from tax).
The government on 3 May 2016 published a draft tax bill that includes provisions to implement the incentives for land and housing supplies. The new law would provide tax incentives, and would provide tax incentives for gains realized during the period between 1 July 2016 and 31 December 2017.
For land and properties held for less than or up to two years, the capital gains would be determined and subject to tax under the current rules.
It is anticipated that the bill would be considered by the Luxembourg parliament and possibly enacted before 1 July 2016.
Read a May 2016 report [PDF 57 KB] prepared by the KPMG member firm in Luxembourg: New draft tax bill encouraging the disposal of land and properties in Luxembourg
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