How much deposit needed Luxembourg property?

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At InvestRopa, we explore the Luxembourg real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Luxembourg City, Esch-sur-Alzette, and Differdange. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

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What is the minimum down payment percentage required by banks in Luxembourg for residential property?

Luxembourg banks require a minimum down payment of 10-20% for most residential property purchases as of September 2025.

First-time buyers can qualify for 100% financing of the property purchase price, meaning no deposit is required for the actual property cost. However, they must still cover all acquisition costs including notary fees, registration taxes, and agency fees from their own funds.

Second-home buyers typically need at least a 10% deposit of the property price, while investment property purchases require a minimum 20% deposit. Some banks may require up to 30% for investment properties depending on the buyer's financial profile and market conditions.

Non-residents face stricter requirements, with most banks demanding 20-40% deposits regardless of whether it's their first property purchase or an investment.

How much cash do I need upfront if I want to buy a property in Luxembourg priced at €500,000?

For a €500,000 property in Luxembourg, your upfront cash requirement ranges from €30,000 to €235,000 depending on your buyer profile and residency status.

As a first-time buyer resident, you'll need approximately €30,000-€35,000 to cover acquisition costs including 6% registration tax (€30,000), 1% transcript tax (€5,000), and notary fees (around €5,000). The Bëllegen Akt tax credit can reduce these costs by up to €20,000 per person.

Second-home buyers need a 10% deposit (€50,000) plus the same acquisition costs, totaling around €80,000-€85,000 upfront. Investment property buyers require a 20-30% deposit (€100,000-€150,000) plus acquisition costs, bringing the total to €130,000-€185,000.

Non-resident buyers face the highest cash requirements, needing 20-40% deposits plus acquisition costs, totaling €130,000-€235,000 for a €500,000 property.

Do banks in Luxembourg allow financing 100% of the property price, or do I always need to bring my own deposit?

Luxembourg banks do allow 100% financing of the property price, but only for specific buyer categories and with important conditions.

First-time buyers purchasing their primary residence can obtain 100% loan-to-value financing for the property purchase price. However, this 100% financing only covers the property cost itself, not the additional acquisition expenses.

All other buyer categories - including second-home buyers, investment property purchasers, and most non-residents - must provide a deposit. Banks typically cap financing at 80-90% of the property value for these buyers.

Even with 100% property financing, buyers must demonstrate they have sufficient funds to cover all acquisition costs, which typically amount to 7-8% of the property price before any tax credits.

It's something we develop in our Luxembourg property pack.

What is the typical deposit required if I'm a first-time buyer in Luxembourg compared to someone buying a second home?

Buyer Category	Typical Deposit Required	Maximum LTV Available
First-time buyer (primary residence)	0% of property price	100% of property price
Second home buyer	10% of property price minimum	90% of property price
Investment property (first-time)	20% of property price minimum	80% of property price
Investment property (experienced)	20-30% of property price	70-80% of property price
Non-resident (any category)	20-40% of property price	60-80% of property price
Cross-border worker	10-20% of property price	80-90% of property price

Are non-residents required to bring a higher deposit than residents when buying property in Luxembourg?

Yes, non-residents face significantly higher deposit requirements when buying property in Luxembourg.

Non-resident buyers typically need to provide 20-40% of the property price as a deposit, compared to 0-20% for residents depending on their buyer category. Banks view non-residents as higher risk due to potential currency exposure, different credit histories, and enforcement challenges.

Many Luxembourg banks require non-residents to undergo international credit checks and may demand additional security or collateral in the buyer's home country. Some institutions also require proof of substantial savings beyond the deposit amount.

Cross-border workers who live in neighboring countries but work in Luxembourg receive more favorable treatment than other non-residents, typically qualifying for 10-20% deposit requirements similar to residents.

How much deposit is usually needed if the property is for investment rather than for my own residence?

Investment properties in Luxembourg require substantially higher deposits than primary residences.

Banks typically require a minimum 20% deposit for investment properties, with many institutions now demanding 20-30% as of September 2025. Some conservative lenders may require up to 30% depending on market conditions and the buyer's financial profile.

The higher deposit requirements reflect the increased risk banks associate with rental properties, including potential vacancy periods, maintenance costs, and the borrower's reduced emotional attachment to investment properties compared to primary residences.

Investment property loans also receive less favorable interest rates and stricter qualification criteria, including higher income requirements and more detailed rental market analysis.

What additional costs do I need to add on top of the deposit, like notary fees and registration taxes in Luxembourg?

Luxembourg property purchases involve substantial additional costs beyond any deposit requirement.

1. **Registration Tax**: 6% of the property purchase price 2. **Transcript Tax**: 1% of the property purchase price 3. **Notary Fees**: Approximately 1% of the purchase price (varies with transaction complexity) 4. **Agency Fees**: 3-6% of the property price (typically paid by buyer) 5. **Bank Arrangement Fees**: 0.5-1% of the loan amount 6. **Property Survey and Valuation**: €500-€1,500 7. **Legal Fees**: €1,000-€3,000 for complex transactions

For a €500,000 property, these costs total approximately €40,000-€65,000 before any applicable tax credits. First-time buyers can benefit from the Bëllegen Akt tax credit, which provides up to €20,000 per person (€40,000 per couple) against registration taxes.

As of September 2025, a temporary measure reduces notary and registration fees to 3.5% total for purchases completed before June 30, 2025, potentially saving buyers significant amounts.

How much money should I set aside for agency fees when buying a home in Luxembourg?

Estate agency fees in Luxembourg typically range from 3-6% of the property purchase price.

Most agency fees are paid by the property buyer, though this arrangement can sometimes be negotiated depending on market conditions and the specific property. For a €500,000 property, expect to budget €15,000-€30,000 for agency fees.

Some agencies charge fixed fees rather than percentages, particularly for higher-value properties, which can result in savings for expensive purchases. Always clarify fee structures and payment responsibilities before signing any purchase agreements.

Agency fees are typically paid upon completion of the property transfer, not upfront, but should be included in your total cash requirement calculations.

Do banks in Luxembourg require proof of savings beyond the deposit amount before approving the mortgage?

Yes, Luxembourg banks require comprehensive proof of savings and financial reserves beyond just the deposit amount.

Banks typically want to see 3-6 months of expenses in liquid savings after accounting for the deposit and all acquisition costs. This demonstrates financial stability and ability to handle unexpected expenses or temporary income disruptions.

For investment properties, banks often require additional reserves equivalent to 6-12 months of mortgage payments to cover potential vacancy periods. Self-employed buyers and non-residents face even stricter reserve requirements.

Banks will scrutinize bank statements for the past 6-12 months, looking for consistent saving patterns and the legitimate source of deposit funds. Large, unexplained deposits may trigger additional documentation requirements.

It's something we develop in our Luxembourg property pack.

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 is the minimum deposit needed to qualify for the best interest rates with Luxembourg banks?

Luxembourg banks offer their most competitive interest rates to borrowers who provide deposits of 20-30% or more.

While first-time buyers can access 100% financing, they typically receive higher interest rates than borrowers with substantial deposits. A 20% deposit often triggers the first tier of preferential rates, with additional rate reductions available at 30% and 40% deposit levels.

Investment property buyers need at least 20% deposits to qualify for standard rates, with the best rates typically reserved for those providing 30% or more. The rate differential between high and low deposit borrowers can be 0.5-1.5% annually.

Banks also consider other factors including income stability, credit history, and loan duration when setting rates, but deposit amount remains one of the most significant factors in rate determination.

How does my income and job contract type influence the deposit percentage I'll need in Luxembourg?

Your income level and employment contract type significantly impact both deposit requirements and loan approval chances in Luxembourg.

Permanent employment contracts (CDI) with established Luxembourg employers provide access to the most favorable deposit terms, potentially qualifying for 100% financing as first-time buyers or minimum deposit requirements for other categories.

Temporary contracts (CDD), self-employed individuals, and those with irregular income face stricter requirements. Banks typically require these borrowers to provide higher deposits - often 20-30% even for primary residences - to offset perceived income instability.

High earners with strong financial profiles may qualify for preferential terms regardless of contract type, while lower-income borrowers need to demonstrate exceptional financial stability to access favorable deposit requirements.

Cross-border workers need stable employment contracts and may face additional documentation requirements, but generally receive treatment similar to Luxembourg residents for deposit calculations.

Are there any government schemes or subsidies in Luxembourg that can reduce the required deposit for property buyers?

Luxembourg offers limited but valuable government assistance that can reduce upfront costs for property buyers.

1. **Bëllegen Akt Tax Credit**: Up to €20,000 per person (€40,000 per couple) credited against registration taxes for first-time buyers 2. **Temporary Fee Reduction**: Until June 30, 2025, reduced notary and registration fees to 3.5% total 3. **Municipal Housing Aid**: Some communes offer local assistance programs for specific buyer categories 4. **Social Housing Schemes**: Limited availability for income-qualified buyers 5. **Energy Efficiency Grants**: Available for properties meeting certain environmental standards

The Bëllegen Akt credit represents the most significant assistance, potentially saving first-time buyers €20,000-€40,000 on a typical property purchase. However, this reduces acquisition costs rather than deposit requirements.

Luxembourg does not offer major national deposit assistance schemes comparable to some other European countries, meaning most buyers must rely on personal savings or family assistance for deposits.

It's something we develop in our Luxembourg property pack.

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.

Sources

1. Switchr - Buying Property with No Deposit Luxembourg
2. InvestRopa - Luxembourg Real Estate for Foreigners
3. AtHome Finance - Usual Down Payment
4. Mortgage.lu - Credit in Luxembourg
5. ExpatFocus - Luxembourg Property Financing
6. BLLLD - Hidden Costs of Buying Property
7. JustArrived - Property Acquisition Costs
8. Immotop - Estate Agency Fees