Every owner of a house, apartment, or land has to pay a property tax. More than 80 years after the last reform of the regulation, the exact amount is soon to be redefined with a new reform and based on aspects such as property size, building potential, distance to the capital, market price, and proximity to services and businesses. Unused properties are to be subjected to a so-called mobilisation tax, which, aside from certain exceptions, will increase incrementally. Another new tax will be put on empty apartments.
However, last week the Council of State lodged 17 formal objections against the draft bill, suggesting the text should be completely reformulated.
Despite this setback, Minister for Home Affairs Taina Bofferding, who co-authored the bill with Minister for Housing Henri Kox and Minister of Finance Yuriko Backes, believes that the fundamental principles of the tax have not been put into question. In conversation with RTL, she argued that formal opposition to such a difficult text is not surprising. The procedural and fiscal questions remaining are now to be resolved together with the Ministry of Finance and the Tax Administration over the coming months, Minister Bofferding further noted.
The politician from the Luxembourg Socialist Workers’ Party (LSAP) also showed understanding for the Council’s opposition to the non-taxation of green zones and explained that a solution is currently being worked on with the Environment Ministry.
As for criticism from the Union of Cities and Municipalities in Luxembourg (Syvicol), which fears that towns will have excessive work without tangible returns with the introduction of the mobilisation tax and that on empty apartments, Minister Bofferding stressed that local administrations will be given all the necessary tools to carry out the monitoring process.
Despite the opposition from the State Council, Minister Bofferding expressed confidence that the property tax reform will come into force in 2026 as currently scheduled.
