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Depreciation on a rental property: current regime or the new '3×6'?
Bought a rental property in 2026? Should you take the current depreciation regime or the new '3×6'? Our worked example compares the two, year by year.
You're buying a flat to let from 2026? Then you have a choice to make.
Two depreciation regimes are open to you: the current regime and the new '3×6' regime, announced in the 'Booster fir de Wunnengsbau' package.
Same flat, same price, but a tax saving that doesn't arrive at the same pace. Let's take a concrete example to see what this choice really changes.
The example in brief
An investor buys a flat for €500,000 in 2026 and lets it out. For this purchase, they can choose between the current depreciation regime and the new '3×6' regime. Here's what each option brings.
Our assumptions
To keep things simple, we start from the following figures:
- Purchase price: €500,000 for the flat. The land portion is set at a standard 20%, giving a depreciable base of €400,000. Notary and registration fees are not included.
- Tax rate: a marginal rate of 39% for a single person, increased by 7% for the employment fund contribution. That gives an overall rate of 41.73%.
- Current regime: depreciation of 4% over 5 years, then 2%. On top comes the special property allowance of 1% of the base (€4,000 a year, under the €10,000 cap), granted only in the years the 4% rate applies.
- New '3×6' regime: depreciation of 6% over 6 years, with the €400,000 base staying under the €600,000 threshold, then 2% by assumption.
How much you deduct each year
| Year | Current regime | New '3×6' |
|---|---|---|
| Years 1 to 5 | €20,000 deducted (€8,346) | €24,000 deducted (€10,015) |
| Year 6 | €8,000 deducted (€3,338) | €24,000 deducted (€10,015) |
| Year 7 onwards | €8,000 deducted (€3,338) | €8,000 deducted (€3,338) |
The figure in brackets is the tax saving for that year. Under the current regime, the deduction for years 1 to 5 combines €16,000 of depreciation and €4,000 of special property allowance.
The cumulative tax saving
| Horizon | Current regime | New '3×6' | Difference |
|---|---|---|---|
| After 5 years | €41,730 | €50,076 | +€8,346 |
| After 6 years | €45,068 | €60,091 | +€15,023 |
| After 10 years | €58,422 | €73,445 | +€15,023 |
It all plays out over the first six years. The gap builds up during that time, then stays locked in. From year 7, both regimes deduct exactly the same amount.
What to take away
For this property, the new '3×6' regime is the most favourable. It brings €15,023 in extra tax savings, secured by the end of the sixth year.
The advantage is all about pace. Deduct more sooner, and you get your tax back faster.
A regime still to be confirmed
The '3×6' regime was announced on 16 July 2026 as part of the 'Booster fir de Wunnengsbau' package. At the time of writing, no bill has been introduced in the Chamber of Deputies. The figures shown here therefore hold subject to the final adoption of the text and the eligibility conditions it will set out.
An example, not advice
This example is simplified and for illustration. It is not individual tax advice and doesn't take into account the other elements of the calculation: rental income, loan interest, maintenance costs or family situation.
We'll put everything in place for you
Every property is different. Once the new regime is confirmed, taxx.lu will let you compare both options and keep whichever is most favourable for your situation. See for yourself.
