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Everything you need to know before buying real estate is included in our Luxembourg Property Pack
Non-resident foreigners can legally purchase any type of property in Luxembourg without restrictions, enjoying the same rights and paying the same taxes as locals.
Luxembourg's property market remains one of Europe's most accessible for international buyers, with no nationality requirements or special permits needed for real estate purchases. Whether you're looking at apartments in Luxembourg City or houses in the countryside, the legal framework treats all buyers equally regardless of residency status.
If you want to go deeper, you can check our pack of documents related to the real estate market in Luxembourg, based on reliable facts and data, not opinions or rumors.
Foreign non-residents can buy any property type in Luxembourg with full ownership rights, paying the same 7% transfer tax and standard fees as residents.
Mortgages are available to non-residents with typically 20% down payment requirements, while rental income is taxed at Luxembourg rates up to 42%.
| Aspect | Non-Resident Status | Key Details |
|---|---|---|
| Legal Rights | Full ownership allowed | Same rights as residents, no restrictions |
| Property Types | All types available | Apartments, houses, land, commercial |
| Transfer Tax | 7% of purchase price | Same rate for residents and non-residents |
| Notary Fees | ~1% of purchase price | Standard rate for all buyers |
| Mortgage Down Payment | Minimum 20% | Up to 80% loan-to-value ratio available |
| Rental Income Tax | Progressive rates up to 42% | Luxembourg-source income taxation |
| Annual Property Tax | Communal rates apply | Same for all owners regardless of residency |
Can foreigners who are not residents legally buy property in Luxembourg?
Yes, foreigners who are not residents can legally buy property in Luxembourg without any restrictions or special permits.
Luxembourg property law treats all buyers equally regardless of their nationality or residency status. As of September 2025, there are no legal barriers preventing non-residents from purchasing real estate in the country.
Non-resident buyers enjoy the same legal rights as Luxembourg residents, including full freehold ownership of their properties. This means you can own apartments, houses, or land outright with complete legal title, just like a local resident would.
The Luxembourg government does not impose any special conditions, waiting periods, or approval processes for foreign non-resident buyers. Once you complete the standard purchase process, you have the same ownership rights and legal protections as any resident property owner.
It's something we develop in our Luxembourg property pack.
What types of properties are foreigners allowed to purchase in Luxembourg?
Non-resident foreigners can purchase all types of real estate in Luxembourg without any restrictions on property categories.
The available property types include residential apartments in Luxembourg City or other communes, standalone houses ranging from small townhouses to large villas, and vacant land for development or investment purposes. Commercial properties such as office buildings, retail spaces, and mixed-use developments are also available to non-resident buyers.
Rural properties including farms, agricultural land, and forest parcels can be purchased by non-residents, though agricultural activities may require separate permits. Luxury properties, historic buildings, and new construction projects are all accessible to foreign buyers without nationality-based limitations.
There are no government-imposed quotas, caps, or special zones that restrict non-resident ownership. Whether you're interested in a Luxembourg City apartment, a house in Esch-sur-Alzette, or land in the Ardennes region, the same purchase rights apply to all buyers.
The only limitations you might encounter relate to general zoning laws, urban planning regulations, or building restrictions that apply to all buyers regardless of residency status.
Do non-residents have to pay higher property transfer taxes than residents in Luxembourg?
No, non-residents pay exactly the same property transfer taxes as Luxembourg residents.
The property transfer tax rate is 7% of the purchase price for all buyers, regardless of nationality or residency status. This flat rate applies universally across Luxembourg with no surcharges or penalties for non-resident purchasers.
First-time buyer credits may be available, but these are typically restricted to Luxembourg residents only. However, the standard 7% rate remains the same whether you're a local resident or a foreign investor.
Additional transaction costs including notary fees (approximately 1% of purchase price) and registration costs are also identical for residents and non-residents. Total upfront costs typically range from 8-10% of the property value, with no additional charges based on residency status.
This equal treatment extends to all aspects of the transaction process, making Luxembourg one of the most foreigner-friendly property markets in Europe for tax purposes.
Are there restrictions on buying property in certain areas of Luxembourg if you're not a resident?
There are no government-imposed geographic restrictions on non-residents buying property anywhere in Luxembourg.
Non-resident foreigners can purchase properties in any commune, neighborhood, or region throughout the country, including prime areas like Luxembourg City center, Kirchberg business district, or prestigious residential areas in Limpertsberg and Belair.
Popular expat areas such as Strassen, Bertrange, and Hesperange are fully accessible to non-resident buyers, as are rural areas, border regions near France, Belgium, and Germany, and developing zones throughout the country.
The restrictions that do exist apply equally to all buyers regardless of residency and relate to standard urban planning, zoning laws, or environmental protections. For example, some agricultural zones may have building restrictions, and certain historic districts may have preservation requirements.
Co-ownership rules in apartment buildings and subdivision regulations for land parcels apply universally, not based on the buyer's residency status.
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How much are the notary fees and registration costs for a non-resident buying property in Luxembourg?
Notary fees for non-residents are approximately 1% of the property purchase price, the same rate charged to residents.
| Cost Type | Percentage of Purchase Price | Notes |
|---|---|---|
| Notary Fees | ~1% | Standard rate for all buyers |
| Property Transfer Tax | 7% | Same for residents and non-residents |
| Registration Costs | ~0.5% | Land registry and administrative fees |
| Legal Documentation | ~0.2-0.3% | Title searches and legal verification |
| Total Transaction Costs | 8-10% | All-inclusive upfront expenses |
Do non-resident buyers need a Luxembourg bank account or can they finance the purchase from abroad?
Non-residents are not legally required to have a Luxembourg bank account to buy property, though opening one can facilitate the transaction process.
You can finance a property purchase from abroad using foreign bank accounts and international wire transfers for the down payment and closing costs. However, most Luxembourg banks require local accounts for mortgage disbursement if you're securing financing locally.
Opening a Luxembourg bank account is often recommended because it simplifies payment processing, makes mortgage applications easier, and helps with ongoing property-related expenses like utilities and property management. Many banks offer non-resident account services specifically designed for property buyers.
Foreign financing through international banks or your home country lender is possible, though you'll need to ensure compliance with both Luxembourg property law and your home country's foreign investment regulations.
Cash purchases from foreign accounts are straightforward, requiring proper documentation for anti-money laundering compliance and source of funds verification.
What are the typical mortgage requirements for foreigners without residency in Luxembourg?
Luxembourg banks offer mortgages to non-residents, though documentation requirements are more extensive than for residents.
Required documentation typically includes employment contracts or proof of stable income, recent tax returns from your home country, bank statements covering 3-6 months, proof of existing assets and liabilities, and sometimes additional collateral depending on your income source location.
Income verification must be thorough and verifiable, often requiring translations and apostille certification for foreign documents. Banks assess your debt-to-income ratio and overall financial stability more carefully for non-resident applications.
Processing times for non-resident mortgages are generally longer than for residents, often taking 6-8 weeks compared to 4-6 weeks for local applicants. Some banks specialize in non-resident lending and have streamlined processes for foreign buyers.
It's something we develop in our Luxembourg property pack.
Is there a minimum income or deposit percentage required for non-residents to secure a mortgage in Luxembourg?
Non-residents typically need to provide at least 20% down payment, with most banks offering loan-to-value ratios up to 80%.
There is no strict legal minimum income requirement, but banks assess your ability to repay based on stable, verifiable income and the property value. Most lenders expect your total monthly debt payments (including the new mortgage) to not exceed 35-40% of your gross monthly income.
Minimum income expectations vary by bank but generally start around €3,000-4,000 monthly for smaller properties, with higher requirements for expensive properties or luxury purchases. Self-employed applicants face stricter scrutiny and may need 2-3 years of tax returns and audited financial statements.
Some banks may require higher down payments (25-30%) for non-residents or properties over certain values, while others might accept lower down payments with additional guarantees or insurance. Exceptional cases with strong financial profiles might secure up to 85-90% financing.
Currency exchange risks and foreign income stability are factors banks consider when setting specific requirements for each non-resident applicant.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Luxembourg versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How is rental income from a Luxembourg property taxed if the owner does not live in Luxembourg?
Rental income from Luxembourg properties is taxed as Luxembourg-source income for non-residents at progressive rates up to 42%.
Non-resident property owners must declare all rental income earned in Luxembourg and pay taxes at the standard progressive rates, which range from 14% to 42% depending on the total income amount. This income is taxed in Luxembourg regardless of where the property owner resides.
Tax treaties between Luxembourg and many countries help prevent double taxation, allowing you to credit Luxembourg taxes paid against tax obligations in your home country. The specific arrangement depends on your country of residence and its tax treaty with Luxembourg.
Several deductions are available to reduce taxable rental income, including mortgage interest payments, property management fees, maintenance and repair costs, insurance premiums, and depreciation allowances. These deductions can significantly reduce your effective tax rate.
Annual tax filing is mandatory for non-residents with Luxembourg rental income, with deadlines typically in March of the following year for the previous tax year's income.
What ongoing property taxes or annual charges would a non-resident owner need to pay in Luxembourg?
Non-resident property owners pay the same annual property taxes as residents, with rates determined by individual communes.
The main ongoing tax is the annual property tax (impĂ´t foncier), which is levied at the communal level and varies by location and property type. Rates are generally modest, typically ranging from 0.5% to 1.5% of the property's assessed value annually.
Luxembourg City tends to have higher rates than smaller communes, while rural areas often have the lowest annual property tax rates. The assessed value for tax purposes is usually lower than market value and is updated periodically by tax authorities.
Additional annual charges may include garbage collection fees, water and sewer connection fees if applicable, and building insurance requirements that some communes mandate. Co-ownership fees for apartment buildings apply to all unit owners regardless of residency.
Property tax bills are typically issued annually and must be paid regardless of whether the property is occupied, rented, or vacant.
Are there inheritance or capital gains tax implications specific to non-resident property owners in Luxembourg?
Non-residents face specific inheritance and capital gains tax rules that differ from those for Luxembourg residents.
For inheritance tax, non-residents are generally not subject to Luxembourg inheritance tax on property left to heirs abroad, unless the heirs become Luxembourg residents. However, the heir's residency status at the time of inheritance determines tax obligations.
Capital gains tax applies to property sales by non-residents, with rates depending on how long the property was owned. Properties held for more than two years may qualify for exemptions or reduced rates, while shorter ownership periods face full capital gains taxation.
Primary residence exemptions typically do not apply to non-residents since the property cannot qualify as a primary residence. Investment properties are subject to standard capital gains rules regardless of ownership duration.
Non-resident sellers must report capital gains in Luxembourg, and tax treaties may affect tax obligations in their home country. Professional tax advice is essential for estate planning and understanding cross-border tax implications.
It's something we develop in our Luxembourg property pack.
What is the step-by-step process for a non-resident to buy property in Luxembourg?
The property purchase process for non-residents follows the same steps as for residents, with some additional documentation requirements.
- Property search and offer: Find a property and make a written offer through a real estate agent or directly to the seller, specifying price and conditions.
- Preliminary contract: Sign a compromis de vente and pay a deposit (typically 10% of purchase price) to secure the property and begin due diligence period.
- Financing arrangement: Apply for mortgage if needed, provide required documentation, and obtain loan approval - this process may take 6-8 weeks for non-residents.
- Legal due diligence: The notary conducts title searches, checks for outstanding debts, verifies property status, and ensures all legal requirements are met.
- Final deed signing: Meet at the notary's office to sign the final purchase deed and pay all taxes, fees, and remaining purchase price - power of attorney is possible if you cannot attend.
- Ownership registration: The notary registers your ownership with the Luxembourg land registry, completing the legal transfer process.
- Ongoing obligations: Set up annual property tax payments and declare any rental income annually in Luxembourg tax filings.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Luxembourg offers one of Europe's most accessible property markets for non-residents, with equal legal rights and no additional costs compared to local buyers.
The straightforward process, combined with stable financing options and clear tax structures, makes Luxembourg an attractive destination for international property investment.
Sources
- InvestRopa - Luxembourg Real Estate for Foreigners
- LuxToday - How to Buy Property in Luxembourg as a Foreigner
- 11houses - Buying Property in Europe Conditions
- Global Property Guide - Luxembourg Buying Guide
- Multilaw - Luxembourg Real Estate Guide
- NextImmo - Real Estate Purchase for Non-Residents
- Lawyers Luxembourg - Property Tax
- Mortgage.lu - Cross-Border Property Purchase
- Taxx.lu - Non-Resident Income Taxation
- Global Property Guide - Luxembourg Taxes and Costs