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Everything you need to know before buying real estate is included in our Luxembourg Property Pack
Luxembourg closing costs can be substantial but vary significantly depending on buyer status and available tax credits.
As of September 2025, total closing costs for a €500,000 property typically range from €8,000 to €45,000, with first-time buyers potentially saving up to €40,000 through the "Bëllegen Akt" tax credit. Registration duties, notary fees, and mortgage arrangement costs make up the largest components of these expenses.
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Luxembourg closing costs range from 1.5% to 9% of the property purchase price depending on buyer status and available reductions.
First-time buyers can save significantly through tax credits, while standard buyers face registration duties of 6% plus transcription tax of 1%.
| Cost Component | Standard Rate | First-Time Buyer Rate |
|---|---|---|
| Notary Fees | ~1% of purchase price | ~1% of purchase price |
| Registration Duties | 6% of purchase price | Up to €40,000 tax credit available |
| Transcription Tax | 1% of purchase price | Covered by tax credit |
| Bank Arrangement Fee | 0.5% of loan amount | 0.5% of loan amount |
| Administrative Costs | €500-€1,500 | €500-€1,500 |
| Property Valuation | €200-€400 | €200-€400 |
| Total for €500k Property | €42,000-€45,000 | €8,000-€11,500 |
How much are notary fees in Luxembourg for a property purchase?
Notary fees in Luxembourg are set at approximately 1% of the property purchase price.
For a €500,000 property, you can expect to pay around €5,000 in notary fees. This percentage applies regardless of whether you're a first-time buyer or repeat purchaser.
The notary handles the legal transfer of ownership, prepares all necessary documents, and ensures the transaction complies with Luxembourg law. Their fee covers the entire conveyancing process from contract preparation to final registration.
Additional small administrative charges may apply, typically ranging from €200 to €500, covering tasks like document preparation and filing fees.
It's something we develop in our Luxembourg property pack.
What percentage of the purchase price goes to registration duties in Luxembourg?
Registration duties in Luxembourg are charged at 6% of the property purchase price under standard conditions.
However, as of September 2025, a temporary reduction is available that lowers this rate significantly. From October 1, 2024, to June 30, 2025, the combined registration and transcription duties are reduced to just 3.5% of the purchase price.
This temporary measure was introduced to stimulate the Luxembourg residential property market and make homeownership more accessible. The reduction applies to all residential property purchases during this period, regardless of buyer status.
After June 30, 2025, the standard 6% rate will likely return unless the government extends the reduction period.
Are there reduced registration fees available for first-time buyers in Luxembourg?
Yes, first-time buyers in Luxembourg can benefit from substantial savings through the "Bëllegen Akt" tax credit system.
This tax credit allows eligible buyers to offset registration and transcription duties by up to €40,000 per person, or €80,000 for a couple buying together. The credit was increased from €20,000 to €40,000 per person in July 2025.
To qualify, the property must serve as your principal residence and you must live in it for at least two years after purchase. The tax credit can completely eliminate registration duties for many first-time buyers, especially on properties valued under €600,000.
If your tax credit exceeds the duties owed, you only pay a minimum €100 registration fee. This makes Luxembourg one of the most favorable countries in Europe for first-time property buyers.
How much is the transcription tax when buying a home in Luxembourg?
Transcription tax in Luxembourg is charged at 1% of the property purchase price.
This tax covers the cost of officially recording the property transfer in the public land registry. For a €500,000 property, the transcription tax would be €5,000 under normal circumstances.
However, the temporary reduction mentioned earlier combines both registration duties and transcription tax into a single 3.5% rate through June 2025. This represents significant savings compared to the standard combined rate of 7%.
First-time buyers can also use their "Bëllegen Akt" tax credit to offset transcription tax along with registration duties, potentially eliminating this cost entirely.
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Are there fixed administrative costs that apply to every property transaction in Luxembourg?
Yes, every property transaction in Luxembourg incurs fixed administrative costs ranging from €500 to €1,500.
These costs include stamp duties, land registry extracts, cadastral documentation, and various filing fees required to complete the legal transfer. The exact amount depends on the complexity of the transaction and the commune where the property is located.
Cadastral and land registry recording fees are typically included in the notary's itemized bill rather than charged separately. Some communes may impose additional administrative fees for processing property transfers.
These fixed costs apply regardless of the property value or buyer status, making them a predictable component of your closing cost budget.
Do banks in Luxembourg charge arrangement fees for a mortgage, and how much are they on average?
Yes, Luxembourg banks charge mortgage arrangement fees averaging 0.5% of the loan amount.
Most banks set a minimum arrangement fee between €350 and €500, regardless of loan size. For a €400,000 mortgage on a €500,000 property, you would pay approximately €2,000 in arrangement fees.
Additional mortgage-related costs include mortgage inscription fees (registering the mortgage as security) and eventual release fees when the loan is paid off, each costing around €250 plus notary fees.
Some banks may offer reduced arrangement fees as part of promotional packages or for customers with existing banking relationships, so it's worth comparing offers from multiple lenders.
What are the typical valuation or appraisal costs when financing a property in Luxembourg?
Property valuation costs in Luxembourg vary significantly depending on the type of appraisal required.
Basic online valuations cost between €25 and €100 and provide automated estimates based on market data. Standard bank-required appraisals for mortgage applications typically cost €200 to €400.
Detailed in-person appraisals conducted by certified valuers can cost €300 to €700, especially for unique or high-value properties. Most lenders require a professional appraisal to confirm the property value supports the requested loan amount.
Energy certification (pass énergétique) is mandatory for most property transactions and costs an additional €200 to €500, depending on property size and complexity.
How much should I budget for legal fees besides the notary's work in Luxembourg?
Legal fees beyond notary services in Luxembourg typically range from €250 to €500 for standard transactions.
Many buyers rely primarily on the notary's services, as Luxembourg notaries handle most legal aspects of property transfers. However, independent legal advice may be valuable for complex transactions or foreign buyers unfamiliar with Luxembourg law.
Cross-border transactions or properties with legal complications may require additional legal support costing €1,000 to €2,000. This includes situations involving inheritance issues, property disputes, or complex ownership structures.
For straightforward residential purchases, the notary's comprehensive service often eliminates the need for separate legal representation, keeping legal costs minimal.
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Are there additional costs for cadastral registration or land registry in Luxembourg?
Cadastral registration and land registry costs are typically included within the notary's comprehensive fee structure.
The notary handles all necessary cadastral documentation and land registry updates as part of their standard service. This includes updating ownership records, preparing cadastral extracts, and ensuring proper registration of the property transfer.
Some minor additional fees may apply for complex property configurations or when multiple cadastral parcels are involved, but these are usually minimal and disclosed upfront by the notary.
The integrated approach in Luxembourg means buyers don't need to separately engage cadastral services, simplifying the transaction process and cost structure.
Do I need to pay for property surveys or technical inspections, and what do they usually cost in Luxembourg?
Technical property inspections are optional for most Luxembourg residential purchases but highly recommended.
Professional building surveys typically cost €300 to €700 depending on property size, age, and location. These inspections identify structural issues, electrical problems, plumbing concerns, and other potential maintenance needs.
Energy certification is mandatory and costs €200 to €500. This certification assesses the property's energy efficiency and is required for all property transactions in Luxembourg.
For new construction, builders typically provide warranty guarantees that may reduce the need for immediate technical inspections, though independent verification is still advisable for major purchases.
Are there recurring taxes I need to pay after the purchase, like property tax in Luxembourg?
Yes, Luxembourg imposes annual property tax (land tax) that varies by commune and property value.
Annual property tax typically ranges from €50 to €400 per year for residential properties, based on indexed cadastral values multiplied by rates set by local authorities. Luxembourg City and other major communes may impose higher rates.
Municipal surcharges can increase the effective tax rate, particularly in high-demand areas. The tax is generally modest compared to property taxes in neighboring countries like Belgium or France.
Property tax calculations use cadastral values that may not reflect current market values, often resulting in relatively low annual tax burdens for property owners.
It's something we develop in our Luxembourg property pack.
When adding everything together, how much should I expect to pay in total closing costs on a €500,000 property in Luxembourg?
| Cost Category | Standard Buyer | First-Time Buyer |
|---|---|---|
| Notary Fees (1%) | €5,000 | €5,000 |
| Registration + Transcription (7% or 3.5% temporary) | €17,500-€35,000 | €0-€17,500* |
| Administrative Costs | €500-€1,500 | €500-€1,500 |
| Bank Arrangement Fee (0.5% of loan) | €2,000 | €2,000 |
| Property Valuation | €200-€400 | €200-€400 |
| Technical Inspection | €300-€700 | €300-€700 |
| Legal Fees (if needed) | €250-€500 | €250-€500 |
| Total Range | €25,750-€45,100 | €8,250-€27,100 |
*First-time buyers can use up to €40,000 tax credit per person
For a standard buyer purchasing a €500,000 property in Luxembourg, total closing costs typically range from €25,750 to €45,100, representing roughly 5% to 9% of the purchase price.
First-time buyers benefit significantly from the "Bëllegen Akt" tax credit, potentially reducing total costs to just €8,250 to €27,100. This dramatic reduction makes Luxembourg particularly attractive for first-time property buyers.
The wide range reflects current temporary reductions in registration duties and the substantial impact of first-time buyer incentives. As of September 2025, these favorable conditions make Luxembourg closing costs among the most competitive in Europe for eligible buyers.
Always confirm exact costs with your notary and bank, as specific fees may vary based on property location, transaction complexity, and your individual circumstances.
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 closing costs vary dramatically based on buyer status and available incentives, with first-time buyers potentially saving tens of thousands of euros.
Understanding these costs upfront allows for better budgeting and takes advantage of current favorable conditions in the Luxembourg property market.
Sources
- Just Arrived - Property Acquisition Costs Luxembourg
- AtHome - Notary Fees Luxembourg
- NewImmo - Reduced Registration Fees
- Linari Law - Bellegen Akt Tax Credit
- NextImmo - Notary Fees Guide
- The Agency Luxembourg - Cost Calculator
- Guichet Public - Tax Credit Information
- Spuerkeess - Banking Fees
- Global Property Guide - Luxembourg Taxes
- PWC - Luxembourg Tax Summary