Housing Finance Policy

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A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivilA.1.1
Are there specific laws that deal with mortgages? YesYesYes
Research
A.1.2
Registration/Transfer of titles:A.1.3
 Are property rights easily transferable?YesYesYes
Lex Mundi
A.1.3.2
Typical number of days needed for the transfer of title272727
WDI
A.1.3.4
Is there specialized legislation covering:A.1.9
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
B.2 Subsidies to Households
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are there subsidies to households on housing finance?Yes  
Research
B.2.1
Interest rate subsidies by special government fundsYes  B.2.1.1
Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
C. Taxation
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
What taxes apply to Residential Real Estate?C.1
Tax on property (home-owners) Yes  C.1.1
Property transaction taxes (purchase/selling)Yes  C.1.2
Tax on capital gains on property Yes  C.1.5
OtherYes  C.1.6
Are there tax benefits on rental properties?Yes  C.2
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Notes: A transfer tax of 6% plus a 1% transcription tax is levied. Properties located in the municipality of Luxembourg are subject to an additional tax levied at 50% of the transfer tax
Notes: Expenses related to rental properties may be deducted. They are calculated in either of the two ways: 1) All expenses, including a depreciation rate of 2-6%, is deducted from gross rent 2) A standard deduction of 35%, with a maximum of Euro 2,700, is deducted from gross rental income
Notes: Figure is for national percentage.
Notes: Figure is for national percentage.
Notes: Figure is for national percentage.
Notes: Figure is for national percentage.
Notes: Figure is for national percentage.
Notes: Figure is for national percentage.
Notes: If a property is sold within two years of acquisition, the difference between acquisition cost and selling price is taxed as miscellaneous income at progressive income tax rates. If a property is sold after two years, the tax is levied at half of the ordinary rate
Notes: It is current practice for employers to grant "preferential loans" to their employees with interest subsidies
Notes: The amount of tax levied depends on several variables such as property value, location, age, and economic use
Notes: There is a tax on rental income