Luxembourg homeowners are increasingly leveraging a government incentive to create additional housing on their properties. Launched in 2023, the program-designed to address housing needs-provides financial support for “integrated housing” projects, effectively allowing for the construction of second dwellings within existing single-family homes. As of January 20th, 2026, the Ministry of Housing reports 80 applications submitted and 21 projects approved for a total of €390,000 in funding.
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LuxembourgHomeowners are Adding Second Residences on Their Property
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A financial incentive introduced in 2023 is driving an increase in the creation of “integrated housing” within single-family homes. To date, 21 applications have been approved.
The owner must have obtained a building permit and must live in one of the two units after the work is completed.
Illustration PexelsLuxembourg homeowners are increasingly exploring options to add secondary residences on their properties, spurred by a government incentive program launched in 2023. The program offers financial support for the creation of what officials are calling “integrated housing” – a second dwelling within an existing single-family home, featuring a separate entrance, either from the exterior or through a common area, according to the Ministry of Housing.
Luxembourg’s Minister of Housing, Claude Meisch, revealed in a parliamentary response on Tuesday that 80 applications have been submitted since September 2023, with two additional applications received since the start of 2026. Of those, 21 projects have been approved for funding, totaling €390,000. The program saw a peak in funding in 2025, with €240,000 allocated to twelve approved projects.
22 Applications Denied
Eligible projects can receive up to €10,000 in support, an amount that has been increased to €20,000 for integrated housing completed before December 31, 2026. Applicants must secure a building permit and commit to residing in one of the two units following construction. The Ministry of Housing reports successful projects in thirteen municipalities, including Mondercange, Larochette, Boulaide, Diekirch, and Walferdange.
According to the latest figures, four applications were withdrawn, and 22 were denied, primarily due to incomplete submissions. Other reasons for denial included a lack of a building permit or insufficient guarantee of a separate entrance for the integrated housing unit. Currently, 33 applications are under review, with five finalized since the beginning of January, resulting in €90,000 in approved funding for the new year.
If you have decided to create integrated housing on your property, with or without a grant, share your experience by email at [email protected].
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