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Renovation support in Luxembourg: which scheme fits your works?

Published on 31 July 2026 · Verified on 18 September 2026 · The Mestravaux.lu team

Before deducting a grant from your budget, separate energy improvements, other housing works and furniture purchases. Different rules apply. This guide helps you identify the procedure to check and the questions to ask; it does not calculate a subsidy from the total project cost alone.

The essentials in 30 seconds

  • Klimabonus and the housing improvement subsidy serve different purposes.
  • A property's age alone does not establish eligibility for 3% VAT.
  • Furniture and fitted kitchens do not become eligible for housing VAT relief because they accompany a renovation.
  • Check the scheme and formalities before work starts; the quotation date alone does not establish your entitlement.
Renovation support in Luxembourg: which scheme fits your works?

Start by classifying the quotation items

For each item, record what will be replaced, the proposed specifications and the purpose: energy performance, safety, living conditions or furnishing. Ask the contractor to list furniture, equipment and building works separately. This lets you put a specific question to the authority instead of asking whether the entire renovation is subsidised.

Klimabonus: check the procedure for your project

Energy renovation support includes a procedure with energy advice and a procedure limited to a single element of the building envelope. The Environment Agency awards the subsidies; Klima-Agence provides advice. Check the procedure for your project and establish the approval-in-principle requirements before work starts. For a heat pump or solar installation, use the dedicated technical-installations guidance. Do not transfer one equipment category's conditions to another.

Housing VAT: age is only part of the conditions

For renovation, Guichet distinguishes substantial improvements to housing built at least 10 years before work starts and completed within 2 years of commencement, and improvements connected with an acquisition, completed within 5 years. The type of work and use as a main residence remain decisive. Furniture and fitted kitchens are excluded from housing VAT relief. To apply the reduced rate directly, the contractor must obtain AED approval before work starts. Ask for eligible and excluded items to be separated in the quotation.

Improvement subsidy: consider living conditions and safety too

The improvement subsidy concerns certain works on older housing and depends, among other things, on the household and its income. It is distinct from Topup Klimabonus; the two types of improvement subsidy cannot be combined. Routine maintenance and purely decorative works are excluded. Check the full conditions with the Guichet unique des aides au logement: non-energy works should not be dismissed without examining their nature.

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Municipality and timing: obtain the rules for your application

Ask your municipality whether support is available for the proposed items. If it is, obtain the rules, deadlines and conditions for combining support. Do not apply an assumed municipal percentage to a national grant. Record approval, order, work-start and invoice dates for each procedure. Applications under an older scheme must be assessed under that scheme. The announced pre-financing for certain investments invoiced from 1 January 2027 must not be presented as a rule already applying to every project in 2026.

Prepare an application that can be checked

Gather the itemised quotation, property details, technical data sheets and proposed timetable. Assign an official reference and a person responsible for the application to each item. After the works, retain invoices, proof of payment and the requested certificates. Compare quotations before grants, then build a separate scenario containing only support whose conditions have been examined.

Frequently asked questions

Can I budget for a fixed subsidy percentage?

No. First identify the scheme and the relevant work items. Rates, caps and conditions do not establish a universal percentage of total renovation costs.

Does housing VAT relief cover a kitchen?

Fitted kitchens are excluded. Separate building works must be assessed independently; their inclusion does not make the furniture eligible.

Should I wait for invoices before checking the procedure?

No. Some steps come before work starts, including approval for direct application of housing VAT relief. Also check prior-approval requirements for your chosen energy scheme.

Who confirms entitlement to support?

Apply to the body named in the official procedure. Klima-Agence can provide guidance; a simulation or contractor's quotation is not an administrative decision.

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