The bill on the reform of property tax in Luxembourg will take shape at the end of 2022. Concretely, it will target non-operated real estate and building or developable land in order to limit their retention for speculative purposes.

Therefore, it will be necessary either to use this land and real estate for housing purposes or to pay an evolving tax relating to the retention time of the land. If no tax rate has yet been stipulated, this reform project was still thought to be "dissuasive" and should follow the evolution of real estate prices. Land requiring development will be considered as such, and the scope of the work will be taken into account in the final calculation of the property tax.

According to Observatoire de l'Habitat *data, 65.2% of land ownership intended for housing in Luxembourg is held by natural persons, i.e., 16,000 people, leaving the State, public developers, and municipalities barely distribute 14.6%. The total land potential was estimated at 20.7 billion euros at the time.

The number one concern of Luxembourgers for some time, access to housing could be facilitated in the long term thanks to this long-awaited reform.

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*La Note 23 de l’Observatoire de l’Habitat – 2016 figures