Accountant for construction firms and tradespeople in Luxembourg, the margin of every site readable every month.
An accountant for construction firms and tradespeople in Luxembourg keeps the books, VAT and payroll of a building business by tracking what the owner actually manages: the margin of each site, advance payments received, subcontracting and cash. We run that tracking every month, from the supplier invoice to the filing of the annual accounts with the RCS.
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Accounting for a construction firm or a tradesperson is general accounting kept under the standard chart of accounts, completed by site-level tracking: labour, materials and subcontracting costs matched against amounts invoiced, advance payments received, and work in progress at year end.
Amended law of 19 December 2002 (accounting, annual accounts, RCS filing) and standard chart of accounts; amended law of 12 February 1979 on VAT; amended law of 2 September 2011 on the right of establishment, which makes craft trades subject to a business permit and a qualification; membership of craft businesses in the Chamber of Skilled Trades (Chambre des Métiers).
Key takeaway
- A construction business is run site by site: the accounts must isolate each site's margin, not only the year's result.
- Advance payments received remain a debt to the client until the work is invoiced; work in progress at year end is recorded as an asset at cost.
- Payroll weighs heavily in construction: overtime, bonuses, bad-weather hours and cross-border workers are matched against each site's margin.
- Our accounting retainers start at EUR 250 excl. VAT per month; payroll is billed at EUR 20 to 25 excl. VAT per payslip depending on volume.
Further reading: payroll and HR administration and changing accountant.
Why construction accounting is different
A site often lasts longer than a month and sometimes longer than a financial year. It is invoiced through progress claims or advance payments, uses teams, materials and subcontractors, and its result only appears on handover. Accounts kept only by type of expense give an overall result without showing which site makes money and which one loses it.
The method keeps the general accounting required by law and adds a code per site. Every purchase, every hour and every subcontractor invoice carries that code; the margin can then be read directly in the accounts, with no spreadsheet kept on the side.
Margin per site: the figure the owner manages
Every month, for each open site, we deliver the amount invoiced, the labour, materials and subcontracting costs incurred, and the resulting margin, compared with the quote. A site that drifts shows up while there is still time to act on scheduling, purchasing or a change order.
The same report gives the cash position: advance payments to call, overdue client invoices, supplier and social-security deadlines. It is the document the bank needs for a credit line or a performance guarantee, and the basis of your financial planning.
Advance payments, work in progress and closing
An advance payment received is not yet revenue: it remains a debt to the client until the corresponding work is invoiced. At year end, work performed but not yet invoiced is recorded as an asset at cost, under the prudence principle that prohibits recognising an unrealised profit.
This count of sites at the closing date drives the year's result and therefore the tax. It is prepared with the owner, site by site, before drawing up the annual accounts filed with the RCS.
VAT on works: housing, subcontracting, cross-border sites
Construction work is in principle subject to the standard VAT rate, but the creation and renovation of homes used as a main residence may qualify for a favourable regime, subject to conditions and approval. The rules are set out in our article on VAT on housing.
Some transactions in the sector fall under the reverse charge, in particular where a subcontractor or supplier is not established in Luxembourg: the customer then accounts for the tax. The mechanism and its conditions are covered in our analysis of the reverse charge. We check the regime of each invoice before the VAT return.
Payroll for site teams
Overtime, bonuses, absences, cross-border employees and hours lost to bad weather make payroll vary from month to month. An error affects employees' net pay, the CCSS filings and the true cost of each site.
We run your teams' payroll and allocate it to sites, so the margin includes the real payroll cost. The service is detailed on our payroll and HR administration page.
Business permit and Chamber of Skilled Trades
Carrying on a building trade in Luxembourg requires a business permit issued by the Ministry for the Middle Classes, subject to a professional qualification; a craft business is also a member of the Chamber of Skilled Trades (Chambre des Métiers). We prepare the application for construction companies and the qualified finishing trades.
For a new business, the permit, the company and VAT registration are prepared together: see company formation in Luxembourg.
How much does an accountant cost for a construction business?
Accounting retainers start at EUR 250 excl. VAT per month for a low-volume company, EUR 485 for an active SME filing VAT quarterly and EUR 755 for an established company filing VAT monthly. Payroll is added at EUR 20 to 25 excl. VAT per payslip depending on volume.
The amount depends on the number of sites and invoices, subcontracting, headcount and VAT frequency. The firm quote follows a file review; the full schedule is on our accounting fees in Luxembourg. Switching firms? The takeover follows our change-of-accountant procedure.
Who this is for
- Construction companies, structural and finishing works
- Building tradespeople: electricians, heating engineers, roofers, joiners, painters, tilers
- SARL, SARL-S or SA companies employing site staff
- Cross-border firms starting sites in Luxembourg
What we do
- Bookkeeping under the standard chart of accounts, with a code per site
- Monthly reporting of margin per site and cash position
- Tracking of advance payments, retentions and subcontractor invoices
- VAT returns, including the housing and subcontracting regimes
- Payroll for site teams and CCSS filings
- Closing, annual accounts, eCDF filing with the RCS and tax returns
Estimated timelines
Pricing indication
Indicative ranges, excluding 17 % Luxembourg VAT, disbursements and filing fees. Firm quote after scoping.
Full grid, terms and simulator: accounting pricing in Luxembourg.
Setting up the accounting of your construction business?
Free first call within 24 hours. Dedicated adviser, NDA on request before any confidential document.
The process, step by step
File review
Review of the latest accounts, open sites, subcontracting contracts and payroll; identification of any backlog.
Site coding
One code per site in the accounts, applied to purchases, hours and invoices, so the margin reads without a parallel spreadsheet.
Monthly bookkeeping and reporting
Entries, bank reconciliations, VAT and payroll, then a margin-per-site and cash report delivered every month.
Closing and annual accounts
Count of work in progress and advance payments, annual accounts, eCDF validation, RCS filing and tax return.
Official sources and verification
This page is written and reviewed by Mickaël LOC, licensed accountant in Luxembourg (business permit 10077274). The rules cited can be checked with the competent authorities.
Frequently asked questions
Why a specialised accountant for a construction business?
Because a construction business is run site by site: advance payments, subcontracting, work in progress and variable payroll need margin tracking per site that general accounting alone does not provide.
Can you track the margin of each site?
Yes. Every purchase, hour and subcontractor invoice carries a site code; every month we deliver a margin-per-site report compared with the quote, and the resulting cash position.
How are advance payments from clients treated?
An advance payment received remains a debt to the client until the work is invoiced. At year end, work performed but not invoiced is recorded as an asset at cost.
Do you run payroll for site workers and cross-border staff?
Yes, at EUR 20 to 25 excl. VAT per payslip depending on volume: overtime, bonuses, absences, bad-weather hours and cross-border employees, with CCSS filings.
How much does an accountant cost for a tradesperson in Luxembourg?
From EUR 250 excl. VAT per month for a low-volume company, EUR 485 for an active SME filing VAT quarterly. The firm quote follows a file review.
Can you take over the file from our current firm?
Yes. We organise the takeover with no break in VAT or payroll: review, transfer request to the previous accountant, site coding, then a first report the following month.
Request a quote
Reply within 24 business hours. NDA on request before any confidential document.