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
Luxembourg is one of the most open countries in Europe for foreign property buyers, with no nationality-based restrictions on owning apartments, houses, or land.
The buying process runs through a notary and involves a binding compromis de vente before the final deed, so understanding the timeline matters.
We update this guide regularly to reflect the latest rules, taxes, and mortgage conditions in Luxembourg's property market.
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.
Insights
- The Bëllegen Akt tax credit now offers up to 40,000 euros per buyer in Luxembourg, which can nearly eliminate the 7% transaction duties on homes under 600,000 euros when buying for personal residence.
- Luxembourg banks typically offer foreign non-residents only 70% to 80% loan-to-value, meaning you should budget a 20% to 30% down payment plus closing costs before house hunting.
- Signing the compromis de vente in Luxembourg legally commits you to purchase, unlike in some countries where it is just a reservation, so never sign without financing pre-approval.
- Annual property tax in Luxembourg is often under 1,000 euros for a typical apartment because it is based on old administrative values rather than current market prices.
- Foreign mortgage borrowers in Luxembourg in 2026 typically see rates between 3.3% and 4.6% depending on fixed versus variable terms and residency status.
- Rental income from Luxembourg property is taxable in Luxembourg regardless of where you live, and you may need to file a local return even as a non-resident owner.
- Short-term tourist rentals in Luxembourg now require compliance with traveler accommodation data rules introduced in late 2025, adding paperwork for Airbnb-style lets.
- Luxembourg's cadastral extract, ordered through ACT, is the key document to verify parcel boundaries, ownership, and any registered rights before buying.
What can I legally buy and truly own as a foreigner in Luxembourg?
What property types can foreigners legally buy in Luxembourg right now?
In January 2026, foreigners in Luxembourg can buy the same residential property types as locals, including apartments, houses, duplexes, penthouses, and new-build purchases off-plan (called VEFA).
The good news is that Luxembourg does not impose nationality-based restrictions, quotas, or special permits on foreign buyers of residential real estate.
When you buy, you typically acquire freehold ownership, meaning you own the unit outright, and for apartments you also receive a share of the building's common parts through Luxembourg's co-ownership regime.
Your ownership becomes fully official and opposable to third parties once the notarial deed is signed and registered with the land authorities.
Finally, please note that our pack about the property market in Luxembourg is specifically tailored to foreigners.
Can I own land in my own name in Luxembourg right now?
Yes, in January 2026 a foreigner can own land directly in their own name in Luxembourg, whether it is the plot under a house, a garden attached to that house, or the shared land beneath an apartment building.
This applies to all standard residential land types, and there is no requirement to use a company structure or local nominee to hold the title.
Land ownership is recorded in the cadastral system managed by ACT (Administration du Cadastre et de la Topographie), and the transfer is finalized through a notarial deed just like any property purchase.
By the way, we cover everything there is to know about the land buying process in Luxembourg here.
As of 2026, what other key foreign-ownership rules or limits should I know in Luxembourg?
As of early 2026, Luxembourg does not have foreign-ownership quotas for apartments, condos, or any residential property, which makes it simpler than many other countries.
There is also no specific foreign buyer approval or registration requirement beyond the standard anti-money-laundering checks that the notary will conduct on your identity and source of funds.
However, the government has been discussing property tax reforms (the IFON/IMOB direction), so while your 2026 bills may look familiar, changes could come in future years.
The main rule that trips up foreigners is the Bëllegen Akt tax credit, which offers up to 40,000 euros per buyer but only when buying for personal residence, so investors do not qualify.
If you're interested, we go much more into details about the foreign ownership rights in Luxembourg here.
What's the biggest ownership mistake foreigners make in Luxembourg right now?
The biggest mistake foreigners make in Luxembourg is treating the compromis de vente like a casual reservation when it is actually a legally binding contract that commits you to buy at the agreed price.
If you sign without your financing in place and then cannot complete the purchase, you could face legal disputes, forfeiture of deposits, or costly renegotiations with the seller.
Other classic pitfalls include not understanding co-ownership charges for apartments, missing the personal-residence conditions for the Bëllegen Akt tax credit, and underestimating how thorough Luxembourg's anti-money-laundering checks are on your source of funds.
We have made this infographic to give you a quick and clear snapshot of the property market in Luxembourg. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Luxembourg?
Do I need a specific visa to buy property in Luxembourg right now?
No, you do not need a specific visa or residence permit to buy property in Luxembourg in January 2026, and many foreigners complete purchases while visiting on a tourist stay.
The most common barrier for non-residents is not a visa requirement but rather obtaining a mortgage, since Luxembourg banks strongly prefer borrowers with local income or residency.
You do not need a Luxembourg tax ID just to sign the purchase, but you may need one later if you earn rental income and must file a local tax return.
A foreign buyer typically needs to present valid identity documents, proof of source of funds for anti-money-laundering purposes, and sometimes a power of attorney if they cannot attend the notarial deed signing in person.
Does buying property help me get residency and citizenship in Luxembourg in 2026?
As of early 2026, buying residential property in Luxembourg does not by itself give you residency or citizenship, and there is no golden visa or investor visa program tied to real estate purchases.
If you want to live in Luxembourg long-term, you need to qualify through standard channels like EU free movement rights, employment, family reunification, or the private-reasons residence permit.
Citizenship typically requires many years of legal residence (usually at least five years) plus language and integration requirements, none of which can be bypassed by buying a home.
We give you all the details you need about the different pathways to get residency and citizenship in Luxembourg here.
Can I legally rent out property on my visa in Luxembourg right now?
Your visa status does not restrict your ability to own and rent out property in Luxembourg, so even non-residents can earn rental income from a Luxembourg apartment or house.
You do not need to live in Luxembourg to rent out your property, but your rental income is taxable in Luxembourg regardless of where you reside.
If you rent on a short-term basis as tourist accommodation, you must comply with the traveler accommodation data requirements that took effect in late 2025, and you should also check whether your co-ownership rules allow short-term lets.
We cover everything there is to know about buying and renting out in Luxembourg here.
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How does the buying process actually work step-by-step in Luxembourg?
What are the exact steps to buy property in Luxembourg right now?
The standard sequence in Luxembourg is: make an offer and negotiate, collect key documents (energy certificate, co-ownership docs if applicable, proof of funds), sign the compromis de vente, finalize your financing, let the notary prepare the deed, sign the notarial deed (acte authentique), complete registration, and receive your keys.
You generally need to be physically present to sign the notarial deed, but this can sometimes be handled through a power of attorney if you coordinate with the notary in advance.
The step that makes the deal legally binding in Luxembourg is signing the compromis de vente, not the final deed, which is why you must have your financing and due diligence sorted before that moment.
From accepted offer to final registration, the typical timeline in Luxembourg is around two to four months, though it can be shorter for cash buyers or longer for complex transactions.
We have a document entirely dedicated to the whole buying process our pack about properties in Luxembourg.
Is it mandatory to get a lawyer or a notary to buy a property in Luxembourg right now?
A notary is effectively mandatory in Luxembourg because the final transfer of property must be done through a notarial authentic deed (acte authentique) to be legally valid and registered.
The key difference is that the notary in Luxembourg is a neutral public official who prepares the deed and handles registration, while a lawyer (which is optional) would represent your interests exclusively and review the compromis before you sign.
If you choose to engage a lawyer, make sure their scope includes reviewing the compromis de vente, checking for any unusual clauses, and verifying that the financing conditions and due diligence requirements are properly included.
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 checks should I run so I don't buy a problem property in Luxembourg?
How do I verify title and ownership history in Luxembourg right now?
The official authority for verifying title and ownership in Luxembourg is ACT (Administration du Cadastre et de la Topographie), which maintains the cadastral registry and land records.
The key document to request is a cadastral extract (extrait cadastral), which shows the parcel boundaries, current owner, and various registered details depending on the extract type.
A reasonable look-back period for ownership history in Luxembourg is at least 10 to 15 years, which helps catch any irregular transfers, disputes, or inheritance issues that might affect your purchase.
A clear red flag that should pause your purchase is any mismatch between the seller's identity and the registered owner, or any ongoing legal annotation or dispute visible on the cadastral records.
You will find here the list of classic mistakes people make when buying a property in Luxembourg.
How do I confirm there are no liens in Luxembourg right now?
The standard way to confirm there are no liens or encumbrances is to have the notary obtain official certificates showing the mortgage and charge status of the property before the final deed.
The most common lien type to ask about in Luxembourg is a mortgage (hypothèque) from a previous loan, which must be properly released (radiation) before the property can transfer cleanly to you.
The best written proof is the official certificate from the mortgage registry, which the notary should obtain and review as part of their standard checks before closing.
How do I check zoning and permitted use in Luxembourg right now?
The authority for zoning and permitted use in Luxembourg is the local commune, which sets planning rules through the Plan d'Aménagement Général (PAG) and other local regulations.
The document that confirms zoning classification is the commune's PAG map and associated rules, which show whether your parcel is designated for residential, mixed, or other uses.
A common pitfall foreign buyers miss in Luxembourg is assuming that because a building is residential, they can do anything with it, when in fact co-ownership rules or commune restrictions may limit short-term rentals, home offices, or extensions.
Buying real estate in Luxembourg can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Luxembourg, and on what terms?
Do banks lend to foreigners for homes in Luxembourg in 2026?
As of early 2026, Luxembourg banks do lend to foreigners for home purchases, though terms are typically stricter for non-residents than for those with local income and residency.
Foreign borrowers in Luxembourg commonly see loan-to-value ratios between 70% and 80%, meaning you should plan for a down payment of 20% to 30% of the purchase price plus closing costs.
The single most important eligibility factor is whether you have verifiable income, ideally Luxembourg-based, since banks heavily discount foreign-currency income and income that is hard to document.
You can also read our latest update about mortgage and interest rates in Luxembourg.
Which banks are most foreigner-friendly in Luxembourg in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Luxembourg are Spuerkeess (BCEE), BGL BNP Paribas, and ING Luxembourg, with Banque Raiffeisen and BIL also commonly serving international buyers.
What makes these banks more foreigner-friendly is their multilingual teams, established mortgage operations, and experience processing applications from buyers without Luxembourg nationality.
These banks will lend to non-residents in some cases, but expect stricter documentation requirements, lower loan-to-value limits, and potentially higher rates compared to what residents receive.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Luxembourg.
What mortgage rates are foreigners offered in Luxembourg in 2026?
As of early 2026, foreign buyers in Luxembourg typically see mortgage rates ranging from about 3.3% to 3.8% for variable rates, 3.7% to 4.3% for 5-to-10-year fixed terms, and 3.9% to 4.6% for longer fixed periods of 15 to 30 years.
Variable rates start lower but can change with market conditions, while fixed rates in Luxembourg cost roughly 0.3 to 0.8 percentage points more but lock in your payment for the chosen term.
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 will taxes, fees, and ongoing costs look like in Luxembourg?
What are the total closing costs as a percent in Luxembourg in 2026?
The typical total closing cost for buying an existing home in Luxembourg in 2026 is around 8.5% of the purchase price, though this can range from about 7.5% to 10% depending on the transaction.
This range covers most standard purchases, with the lower end for straightforward cash deals and the higher end for mortgage purchases with additional registration steps.
The specific fee categories that make up closing costs in Luxembourg include registration duty (6%), transcription fee (1%), notary fees and administrative costs (roughly 1% to 2%), and mortgage registration fees if you borrow.
The single biggest contributor is the registration duty at 6%, which is why the Bëllegen Akt tax credit (up to 40,000 euros per buyer for primary residence purchases) can make such a dramatic difference to your effective costs.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Luxembourg.
What annual property tax should I budget in Luxembourg in 2026?
As of early 2026, you should budget roughly 300 to 1,200 euros per year for annual property tax (impôt foncier) on a typical owner-occupied apartment or house in Luxembourg, which is about 300 to 1,200 USD or EUR since they trade near parity.
Luxembourg's property tax is assessed based on old administrative values (not current market prices) multiplied by commune-specific rates, which is why it tends to be modest compared to countries that tax based on market value.
How is rental income taxed for foreigners in Luxembourg in 2026?
As of early 2026, rental income from Luxembourg property is taxed at Luxembourg's progressive income tax rates, which can reach up to about 42% at the top bracket, though your effective rate depends on your total income and allowable deductions.
Foreign owners must typically file a Luxembourg tax return (Form 100 via MyGuichet) to report their rental income minus deductible expenses like mortgage interest, repairs, management fees, and depreciation.
What insurance is common and how much in Luxembourg in 2026?
As of early 2026, a typical annual home insurance premium in Luxembourg is around 420 to 660 euros for an apartment and 600 to 1,200 euros or more for a house, which is roughly the same in USD given current exchange rates.
The most common type of coverage Luxembourg homeowners carry is a multirisque habitation policy that includes fire, water damage, burglary, glass breakage, and civil liability.
The biggest factor that makes premiums higher or lower for the same property type in Luxembourg is the insured rebuilding value and the specific coverage add-ons you choose, such as natural disaster protection or extended contents coverage.
Get the full checklist for your due diligence in Luxembourg
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 |
|---|---|---|
| Guichet.lu - Bëllegen Akt | Luxembourg government's official public information portal. | We used it to state the current maximum tax credit and eligibility logic. We translated that credit into effective closing cost estimates for typical purchases. |
| Chamber of Deputies | Luxembourg's parliament publishing legislative updates. | We used it to confirm the 40,000 euro per buyer policy level. We cross-checked it against Guichet.lu to avoid relying on press summaries. |
| Guichet.lu - Compromis de vente | Official government explanation of a key legal step in homebuying. | We used it to explain what the compromis legally commits you to. We used it to define the biggest mistake section about commitment timing. |
| ACT (Cadastre Luxembourg) | Official land registry and topography administration. | We used it to describe what ACT is responsible for. We used it to build the title and cadastral checks workflow. |
| Guichet.lu - Cadastral extract | Government's own step-by-step procedure page. | We used it to explain what a cadastral extract contains. We used it to create a practical checklist for verifying the property. |
| Guichet.lu - Property tax | Official government description of property tax. | We used it to describe what the tax is and how communes levy it. We used it to justify why annual costs are usually modest. |
| BCL (Banque centrale du Luxembourg) | Luxembourg's central bank and primary source for rate data. | We used it to anchor mortgage rate ranges using official averages. We avoided quoting broker marketing as market rates. |
| STATEC - Housing in figures | Luxembourg's official statistics office. | We used it to ground the market context with recent price data. We used it to keep the article specific to Luxembourg. |
| Spuerkeess (BCEE) | Major domestic retail bank explaining transaction taxes. | We used it to cross-check the 6% plus 1% fee structure. We used it as a sanity check against government guides. |
| atHomeFinance | Widely used local housing finance platform in Luxembourg. | We used it to triangulate the typical buyer-facing cost breakdown. We used it to keep explanations accessible for non-professionals. |
| Guichet.lu - Rental income | Official guidance on how Luxembourg taxes rental income. | We used it to explain rental income tax at a high level. We used it to list common deductible cost categories. |
| AED / Portail fiscalité indirecte | Official Luxembourg portal for indirect taxation formalities. | We used it to explain how mortgage registration and release work. We used it to warn buyers about extra notarial steps with loans. |
| Guichet.lu - Tourist accommodation | Government's operational rules for post-2025 accommodation framework. | We used it to flag that short-term rentals create extra compliance duties. We used it to keep the renting out section accurate for 2026. |
| Switchr.lu | Luxembourg insurance comparison platform with current premiums. | We used it to benchmark typical home insurance costs. We used it to provide realistic monthly and annual ranges. |
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.