Authored by the expert who managed and guided the team behind the Luxembourg Property Pack
Everything you need to know before buying real estate is included in our Luxembourg Property Pack
Yes, foreigners can get a mortgage in Luxembourg, and banks there are actually quite used to international applicants.
That said, the rules around down payments, income verification, and residency status matter a lot, and they differ depending on whether you are buying a primary home or an investment property.
We keep this article updated regularly so you always have the freshest numbers and requirements.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Luxembourg.
Can foreigners get a mortgage in Luxembourg right now?
Can a foreigner get a residential mortgage in Luxembourg right now?
Yes, foreigners can get a residential mortgage in Luxembourg in 2026, and the decision depends more on your income stability and deposit size than on your passport.
EU and EEA citizens, as well as cross-border workers commuting into Luxembourg, typically have the easiest access to mortgages because banks are familiar with their income documentation and legal status.
The most common condition Luxembourg banks impose on foreign applicants is requiring a larger cash deposit (often 10% to 25%) and stronger proof of income compared to local residents with established banking history.
By the way, we have a whole document dedicated to mortgages for foreigners in our property pack about Luxembourg.
Can I get a mortgage in Luxembourg without residency?
Yes, non-residents can get a mortgage in Luxembourg, but it is harder and banks will typically ask for a bigger deposit and more documentation.
Residents with Luxembourg income have the smoothest path, followed by cross-border commuters (frontier workers), and then non-residents with strong EU or EEA profiles.
When you do not have permanent residency in Luxembourg, banks usually require higher cash reserves after purchase, more detailed income verification, and sometimes a lower loan-to-value ratio than the regulatory maximum allows.
By the way, we've written a blog article detailing residency and citizenship options that exist when you buy property in Luxembourg.
Do banks require a local work contract in Luxembourg right now?
No, a Luxembourg work contract is not legally required, but having one is by far the fastest way to get approved because banks can easily verify and forecast your income.
If you do not have a Luxembourg contract, banks typically accept EU salary income with translated payslips, tax returns from your home country, and sometimes employment letters confirming your role and tenure.
When a local work contract is present, Luxembourg banks usually prefer to see at least 6 to 12 months of tenure, though longer employment history always strengthens your file.
Can self-employed foreigners qualify for a mortgage in Luxembourg?
Yes, self-employed foreigners can qualify for a mortgage in Luxembourg, but expect a document-heavy application with more scrutiny on your income stability.
Luxembourg banks typically want to see 2 to 3 years of stable profits (not just revenue), low income volatility, and clean business banking statements before they approve a self-employed applicant.
Is foreign income accepted for mortgages in Luxembourg right now?
Yes, Luxembourg banks often accept foreign income, especially if it is EU or EEA salary income paid in euros, though they will apply stricter verification and may add affordability buffers for currency risk.
When you earn income abroad, banks typically require translated and certified payslips, tax returns from your country of employment, and sometimes bank statements showing regular salary deposits over several months.
Can I buy a primary home (and an investment property?) with a mortgage in Luxembourg as a foreigner?
Yes, foreigners can get a mortgage for a primary home in Luxembourg, and the rules are actually more favorable for owner-occupiers because the regulatory LTV cap goes up to 90% (or even 100% for first-time buyers).
Foreigners can also get a mortgage for an investment property in Luxembourg, but the maximum LTV drops to 80%, which means you need at least 20% as a down payment for a buy-to-let purchase.
If you're buying for investment, you might want to check our blog article about buying and renting out in Luxembourg.
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.
What are the eligibility rules banks actually use in Luxembourg?
What minimum monthly income do I need in Luxembourg as of 2026?
As of early 2026, banks in Luxembourg typically require a minimum household income of around 6,000 to 7,000 euros net per month to approve a mortgage for an average-priced existing apartment.
Most approved borrowers in Luxembourg fall into the 6,000 to 10,000 euros net monthly income range, with higher earners needed for properties in Luxembourg City where prices can exceed 9,500 euros per square meter.
The minimum income requirement scales directly with the loan amount: a 500,000 euro loan at 3.3% over 30 years costs roughly 2,200 euros per month, and banks want that payment to stay below 35% of your net income.
Yes, Luxembourg banks commonly allow combining household incomes from multiple applicants (such as spouses or partners), which makes it easier for couples to meet the income threshold for higher-priced properties.
What debt-to-income limit do banks use in Luxembourg right now?
Luxembourg banks do not publish a single official debt-to-income cap, but in practice most approvals happen when your total housing payment stays at or below 30% to 40% of your net monthly income, with 35% being a common target for clean approvals.
When calculating your debt-to-income ratio, Luxembourg banks include all existing obligations such as car loans, consumer credit, credit card minimum payments, and any other mortgage payments you already have.
Do I need a local credit score in Luxembourg right now?
Luxembourg does not use a single credit score system like the US does, so banks instead look at your local banking history (salary deposits, account conduct, savings behavior) to assess your creditworthiness.
Foreign credit reports can help support your application as additional evidence, but they rarely replace the local verification and documentation that Luxembourg banks require under EU consumer mortgage rules.
Do banks require a local guarantor in Luxembourg right now?
Most mainstream Luxembourg mortgage cases do not require a guarantor if your income is straightforward, your deposit is strong, and the property structure is simple.
Banks are most likely to request a guarantor when you are a non-resident with limited ties to Luxembourg, when your income is complex (self-employed or multi-country), or when your LTV is high and your cash buffers are thin.
If a guarantor is required, that person typically needs to be a Luxembourg or EU resident with stable income and sufficient assets to cover the loan obligation if you default.
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How much cash do I need upfront in Luxembourg as of 2026?
What's the minimum down payment in Luxembourg right now?
The regulatory minimum down payment for foreign buyers in Luxembourg is 10% for a primary residence and 20% for an investment property, based on the CSSF's binding LTV caps.
In practice, down payments across different banks and buyer profiles in Luxembourg range from 0% (for first-time buyers purchasing a primary home) to 25% or more (for non-residents or complex income profiles).
You might secure a lower down payment if you are a first-time buyer purchasing your primary residence, if you have stable Luxembourg income with a long employment history, or if you have substantial liquid savings after the purchase.
What loan terms can I realistically get in Luxembourg as of 2026?
What mortgage interest rates are typical in Luxembourg as of 2026?
As of early 2026, typical mortgage interest rates in Luxembourg range from around 3.0% for variable rates to 3.4% to 3.8% for fixed rates, depending on the fixation period you choose.
The factors that most significantly influence your rate in Luxembourg include the fixation length (longer fixed periods cost more), your loan-to-value ratio (lower LTV means lower risk for the bank), and your overall financial profile strength.
Foreigners do not automatically receive higher interest rates than local residents in Luxembourg, but if your profile requires extra risk assessment (non-resident, complex income, high LTV), you may end up at the higher end of the rate range.
The interest rate is one of the factors we look at when assessing whether now is a good time to buy a property in Luxembourg.
Are fixed-rate mortgages available in Luxembourg right now?
Yes, fixed-rate mortgages are widely available to foreigners in Luxembourg, and they are actually quite common in the market because the central bank tracks multiple fixed-rate categories in its official statistics.
Luxembourg banks typically offer fixed-rate periods of 1 to 5 years, 5 to 10 years, and 10 years or longer, with rates increasing slightly as the fixation period extends (for example, around 3.4% for 1 to 5 years versus 3.6% to 3.8% for 10 years or more).
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Luxembourg. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How do I maximize approval chances in Luxembourg right now?
What financial profile gets "yes" fastest in Luxembourg right now?
The ideal profile that gets mortgage approval fastest in Luxembourg is someone with a stable Luxembourg payroll job (CDI contract), low existing debt, a clean one-income-stream story, and cash left over after the down payment and fees.
Banks in Luxembourg consider an ideal profile to have a household income of at least 6,000 to 7,000 euros net per month (around 7,000 to 8,000 USD) with a debt-to-income ratio at or below 30% to 35%.
Luxembourg banks most favor applicants with permanent employment contracts (CDI) and at least 12 months of tenure, though longer employment history always strengthens your application.
A down payment of 15% to 20% or more typically signals a strong applicant profile in Luxembourg, even though the regulatory minimum can be as low as 0% to 10% for primary residences.
We give more detailed tips in our pack covering the property buying process in Luxembourg.
What mistakes make foreigners get rejected in Luxembourg right now?
The most common mistake that leads to mortgage rejection for foreigners in Luxembourg is underestimating the total cash needed, because down payment is only part of the story and registration fees, notary costs, and bank fees can add thousands of euros.
The financial red flag that most often disqualifies foreign applicants in Luxembourg is unclear or undocumented source of funds, especially for international transfers, which triggers extended AML and KYC checks that can delay or kill applications.
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Which banks say yes to foreigners in Luxembourg right now?
Which banks are most foreigner-friendly in Luxembourg as of 2026?
As of early 2026, the banks most commonly considered foreigner-friendly for mortgages in Luxembourg include Spuerkeess (BCEE), BGL BNP Paribas, BIL (Banque Internationale à Luxembourg), Raiffeisen, and Banque de Luxembourg.
These banks are more accessible to foreign applicants because they have multi-language processes, experience handling cross-border workers (frontier workers), and dedicated advisors who understand international income documentation.
Which banks accept non-resident borrowers in Luxembourg right now?
Some Luxembourg banks do accept non-resident borrowers on a case-by-case basis, including Spuerkeess, BIL, Raiffeisen, and Banque de Luxembourg, though each will assess your profile individually.
These banks typically impose additional requirements on non-resident applicants, including higher down payments (often 20% to 25% or more), EU or EEA income in euros, stronger proof of funds, and sometimes an existing banking relationship in Luxembourg.
Do international banks lend more easily in Luxembourg right now?
International banks do not automatically lend more easily to foreigners in Luxembourg than local banks do, because approval depends more on your profile match with the bank's typical pipeline than on the bank's international presence.
International banking groups with a presence in Luxembourg include BGL BNP Paribas (part of BNP Paribas group), and they can be more comfortable with cross-border profiles if your documentation is strong and standardized.
The main advantage of using an international bank in Luxembourg is that they may have more experience with multi-country income verification and cross-border documentation, which can speed up the process if your profile is complex.
We made this infographic to show you how property prices in Luxembourg compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Luxembourg, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| CSSF Regulation 20-08 | It is the Luxembourg financial regulator's binding rulebook for residential mortgage lending. | We used it to establish the maximum LTV caps that banks cannot exceed for residential property. We translated those caps into practical minimum down payment requirements for primary homes versus investment properties. |
| BCL Interest Rate Statistics | It is the central bank's official mortgage rate data for Luxembourg banks. | We used it to anchor realistic mortgage rate ranges as of early 2026. We also used it to explain the difference between variable and fixed-rate options. |
| Luxembourg Government Housing Report | It is an official housing publication produced with Luxembourg's national statistics office. | We used it to ground income requirement estimates in real price levels per square meter. We also used it to show how prices differ between Luxembourg City and other areas. |
| Guichet.lu Portal | It is the Luxembourg government's official citizen portal for administrative information. | We used it to explain the Bellegen Akt tax credit and how it can reduce registration costs for owner-occupiers. We also used it to highlight the occupancy conditions that apply. |
| EU Mortgage Credit Directive | It is the official EU law setting consumer mortgage rules across the EU. | We used it to explain why Luxembourg lenders must assess creditworthiness regardless of nationality. We used it to clarify what banks are legally required to check. |
| CSSF Circular 24/869 | It is the Luxembourg regulator's supervisory guidance on mortgage credit law. | We used it to support the process and documentation section. We used it as a regulatory cross-check alongside EU law and LTV regulations. |
| Legilux Luxembourg Law | It is the official source of Luxembourg law. | We used it to confirm that Luxembourg has a dedicated consumer mortgage credit law. We used it to triangulate the legal basis behind CSSF regulations. |
| Spuerkeess (BCEE) | It is one of Luxembourg's major retail mortgage lenders. | We used it to reflect the real borrower journey and advisor process. We also used it to verify typical loan durations and rate options. |
| BIL (Banque Internationale) | It is a major Luxembourg retail bank offering residential mortgages. | We used it to confirm that mainstream banks openly offer mortgages to foreigners. We used it to support the foreigner-friendly banks section. |
| Raiffeisen Luxembourg | It is a significant local cooperative bank with mortgage products. | We used it to verify lender availability and the advisory process. We also used it to support approval tactics and documentation requirements. |
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