In short. Bill 8082A aims to modernise the property tax and create the IMOB, a tax that would target building land left undeveloped. Beware a common confusion: this text has not yet been passed. As of 2 July 2026 it is still in committee at the Chamber of Deputies, with entry into force envisaged around 2028. The political direction is clear, to encourage building rather than hoarding empty land, but both the content and the timeline may still change.
Where the project really stands
- A bill, not a law. The text is referenced 8082A, split off from the initial project 8082 in July 2025.
- Presented in committee on 17 July 2025 (Home Affairs and Housing), rapporteur Mr Marc Lies.
- Council of State opinion issued on 3 February 2026. The initial project had received 22 formal oppositions, hence a substantial redraft.
- Status on 2 July 2026: in committee. No vote in plenary session so far.
- Entry into force envisaged: around 2028, according to the timeline put forward by the ministers. To be confirmed.
- The vacant-homes strand (INOL) has been detached and will follow later.
What the reform plans
The reform, led by ministers Léon Gloden (Home Affairs) and Claude Meisch (Housing), modernises a property tax whose calculation base had not changed since 1941. It brings together two mechanisms: the new property tax (IFON) and the land-mobilisation tax (IMOB).
The new property tax (IFON)
The planned formula is simple: a base value reflecting the buildable potential of the plot, multiplied by a rate set by each municipality, with an allowance for the owner-occupier. The stated aim is not to increase the tax burden: revenues would remain modest, around 39 to 47 million euros a year, and would continue to go to the municipalities. An official simulator already exists at grondsteier-rechner.lu.
The IMOB: the tax that would target undeveloped land
This is the heart of the reform. The IMOB aims to end land hoarding, that is building plots kept empty while they gain value. The planned principle: five years to start a construction project on serviced land (eight years if not yet serviced). After that, the IMOB would become due, with a rate that rises over time and could reach 900% after twenty years. The tax would be collected by the State. An allowance per child is planned, and the age limit has been raised from 25 to 35.
Here is the official example given in the project, for a 6-are plot in Mersch:
| Age of the undeveloped plot | Annual IMOB (project example) |
|---|---|
| First 5 years | 0 euro (0% rate) |
| After 5 years | 260 euros |
| After 11 years | 3,900 euros |
| After 16 years | 12,900 euros |
| From the 20th year | 23,200 euros |
These amounts remain those of a project under discussion and could change before any vote.
Do you own land or a property to weigh up?Request your CARMO valuation, free and with no obligation
Vacant homes (INOL): the next stage
The second strand, the national tax on non-occupation of dwellings (INOL), would target existing but uninhabited homes. It was detached so as not to delay the whole, and would come later, once the national register of buildings and dwellings is in place. A home would be deemed vacant if no one is registered there for six consecutive months. According to the project, the INOL would be 3,000 euros in the first year, rising by 900 euros a year, capped at 7,500 euros a year. This scale is still to be confirmed.
The real timeline, without panic
Nothing is in force today, because the text still has to be passed. If it were adopted as it stands, the new property tax would only apply in a second phase, the IMOB would remain at 0% for five years, and the first truly significant amounts would only arrive later. The timeline put forward by the ministers points to implementation around 2028. You therefore have time to decide, but the direction is now set.
If you own building land
Three options are open to you: build by starting a project within the deadlines, sell to mobilise the land through the market, or pass it on using the child allowance up to age 35. Passive waiting would, in time, become the only option that costs.
Our view from the field. In the southern basin (Pétange, Differdange, Niederkorn, Esch), serviced building land is scarce and sells fast, often above the seller's expectations. With existing flats around 6,500 to 7,300 euros per m2, the value of a good plot remains high. It is a favourable window to sell, before future tax pressure pushes other owners to put their land on the market at the same time.
If you own a vacant home
A vacant home already costs: charges, upkeep, risk, and tomorrow perhaps the INOL. Two reasonable ways out: rent it to generate income, or sell it if managing a rental does not appeal. Better to decide calmly, without waiting for a wave of vacant homes coming back onto the market at once.
Build, sell or wait: how to decide
A simple rule: if you have no realistic construction project within five years, waiting gradually loses its economic sense. There is no immediate tax urgency, since the text has not been passed, but anticipating still pays. When in doubt, a costed valuation and a market read are worth more than a bet on the future.
Frequently asked questions
Has the property-tax reform already been passed?
No. As of 2 July 2026, bill 8082A is still in committee at the Chamber of Deputies. It was presented in committee in July 2025 and received the Council of State's opinion in February 2026. No vote in plenary session has taken place.
When would the reform enter into force?
The timeline put forward by the ministers points to around 2028. This date is indicative, as the text may still change before adoption.
Would my undeveloped plot be taxed straight away?
No. The project plans an IMOB at 0% for the first five years, then a gradual increase.
Is my main residence affected by the IMOB?
No. The IMOB would target building land left undeveloped. Your built dwelling would fall under the property tax, with an allowance for the owner-occupier.
Should I sell my land now?
There is no immediate tax urgency, since the reform has not been passed. But if you have no construction project within five years, selling while demand in the south is strong is often the best decision.
Land, vacant home, property to weigh up?Request your CARMO valuation, free and with no obligation
Official sources
- Parliamentary file 8082A (status: in committee), Chamber of Deputies.
- Property tax and land mobilisation dossier, gouvernement.lu.
- Property tax, Guichet.lu.
- Official property-tax simulator.
This article is for information only and does not constitute legal or tax advice. Information up to date on 2 July 2026, while bill 8082A is under parliamentary examination. Before any decision, check the texts in force and consult your notary, your municipality or an adviser.
By David Carmo, founder of CARMO Immobilier. A real estate professional since 2008, board member of the Real Estate Chamber of the Grand Duchy of Luxembourg, member of its disciplinary council, and trainer at the Real Estate Academy.