Renovation rules in Luxembourg

The official VAT guidance sets these main conditions for renovation work at the 3% super-reduced rate:

• the dwelling is used as a main residence, by the owner or by a tenant (mixed-use buildings are covered in proportion or in full depending on the share used as housing);
• the building is at least 10 years old when the works start;
• the works are completed within 2 years of starting;
• the total VAT advantage is capped at €50,000 per dwelling.

Only listed works qualify. The official page excludes, among others, furniture including fitted kitchens, bathroom furniture and mirrors, special technical equipment such as alarms or home automation, air conditioning and wellness equipment, and notary, architect and engineer fees.

Procedure: for direct application, the contractor applies to the AED (Administration de l'enregistrement, des domaines et de la TVA) for an approval before the works start; the client countersigns. If no approval is obtained, the contractor invoices at 17% and the owner can claim a refund of the difference from the AED, subject to minimum invoice amounts and within the limitation period stated on the official page.

Other conditions apply, including the obligation to report a change of use. Check the official page for your situation.

For energy renovation of a residential building more than 10 years old (counted from the building permit), the official Klimabonus 2026 page sets this order:

1. Energy advice by an approved energy advisor (the advice itself is also subsidised).
2. Accord de principe (approval in principle), which must be obtained before the renovation works start.
3. Works, each with its own invoice.
4. Payment request after the works, within 4 years from 31 December of the year of the invoice.

Insulation and window aid is calculated per m² of renovated element, with higher amounts when the energy class improves. Renovating more than one element requires energy advice.

Aid for heat pumps and other technical installations is a fixed amount that depends on the system, the building and the date of order; the application is made after installation, and minimum performance conditions apply.

The amounts are not guaranteed until the administration confirms them. Check eligibility before you sign or order.

Articles 1792 and 2270 of the Civil Code make architects and contractors liable for ten years for major works (gros ouvrages) and two years for minor works (menus ouvrages). According to the Chambre des Métiers, both periods run from the reception of the works.

Reception is ideally recorded in a signed and dated report (procès-verbal de réception) that lists any reservations. The Chambre des Métiers notes that reception can also be tacit, for example when the owner takes possession and pays in full without protest, and that reception covers visible defects for which no reservation was made. Record visible defects at reception.

Keep the quote, invoices, reception report and any later correspondence about defects. The liability is a legal obligation of the contractor; ask the contractor separately which liability insurance it holds and for a current certificate.

According to the official page on building permits, construction, transformation, change of use and demolition require an authorisation from the mayor. Each commune's building regulation (règlement sur les bâtisses) can list smaller works that do not need a permit, so the rules differ between communes.

A permit is granted only if the project complies with the commune's general development plan (PAG), any applicable particular development plan (PAP) and the communal building regulations. The request must be made before the works start.

Plans normally have to be drawn up by an architect. The official page states that interior works on a dwelling do not need an architect if they do not affect the load-bearing structure, the façade or the roof.

Ask your commune's technical or urban-planning department whether your project needs a permit before you sign. In an apartment building, also check the co-ownership rules and whether the general meeting must approve work on common parts.

Establishment authorisation. Craft and commercial activities in Luxembourg require an autorisation d'établissement, issued by the Ministry of the Economy. It is granted to the business and covers the activity named on it. Companies established in another EU country may provide services occasionally and temporarily in Luxembourg, but craft businesses must notify their service provision. Ask each company, including subcontractors, for a copy of the authorisation that covers the work in its quote, or for proof of its notification. Fynd does not check these documents.

Asbestos. Older buildings can contain asbestos. Ask the contractor before demolition whether materials need to be checked. According to the Inspection du travail et des mines (ITM), a grand-ducal regulation of 19 May 2026 introduces an ITM permit for companies carrying out demolition or asbestos-removal work; after a transition period ending on 1 May 2027, the work covered may only be done by permit holders, and the ITM publishes the list of companies holding a permit.

1. Describe the project and ask the commune whether a building permit is needed.
2. For energy renovation, book the energy advice and obtain the Klimabonus accord de principe before the works start.
3. Collect quotes for the same scope, with the VAT rate on each line and the contractor's authorisation and insurance documents.
4. Agree on the VAT route: either the contractor requests the AED approval before the works start, or you plan a refund application afterwards.
5. Sign once the conditions above are clear, with a quote validity and start date that leave time for these steps.
6. At the end, record the reception of the works in writing and keep all documents.

Processing times depend on each administration and commune. Ask them directly rather than relying on a general estimate.