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 offers one of Europe's most accessible real estate markets for non-EU citizens, with no legal restrictions on property ownership and straightforward purchase procedures. Non-EU buyers can purchase any type of residential or commercial property without needing a residence permit or visa, though property ownership does not grant any immigration rights or special residency privileges.
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.
Non-EU citizens can legally buy property in Luxembourg without restrictions and enjoy similar rights as EU nationals, but property ownership does not grant residency rights.
Mortgages are available but require higher down payments (20-40%) and stricter documentation compared to EU residents.
| Aspect | Non-EU Citizens | EU Citizens/Residents |
|---|---|---|
| Legal Right to Buy | Yes, no restrictions | Yes, no restrictions |
| Property Types Available | All (land, apartments, houses) | All (land, apartments, houses) |
| Registration Tax | 7% of property price | 7% of property price |
| Notary Fees | ~1% of property price | ~1% of property price |
| Mortgage Down Payment | 20-40% typically required | 10-20% typically required |
| Government Subsidies | Generally not eligible | May be eligible |
| Residency Rights | None granted | Already have EU rights |
Can I legally buy property in Luxembourg if I am not from the EU?
Yes, non-EU citizens can legally buy property in Luxembourg without any restrictions or special requirements.
Luxembourg's property market is completely open to international buyers, regardless of nationality or residency status. You have the same legal rights as EU citizens when it comes to purchasing real estate.
This includes full freehold ownership rights, meaning you can own the property indefinitely and have complete control over it. There are no quotas, limitations, or special approval processes that apply specifically to non-EU buyers.
The Luxembourg government does not impose any discriminatory measures against foreign investors in the residential property market.
As of September 2025, this policy remains unchanged and Luxembourg continues to welcome international property investment.
Do I need a residence permit or visa before I can purchase a property here?
No, you do not need a residence permit or visa to purchase property in Luxembourg as a non-EU citizen.
Property purchase and residency status are completely separate legal matters in Luxembourg. You can buy real estate as a tourist or while visiting on a short-term visa.
However, it's crucial to understand that owning property does not grant you any rights to live, work, or obtain residency in Luxembourg. Property ownership and immigration rights are entirely independent of each other.
If you want to live in Luxembourg after purchasing property, you must follow the standard visa and residence permit application processes through the appropriate immigration channels.
The property purchase process can be completed remotely through legal representatives, so physical presence isn't even required during the transaction.
Are there restrictions on the type of property non-EU buyers can purchase, like land versus apartments or houses?
There are no restrictions on the type of property that non-EU citizens can purchase in Luxembourg.
You can buy any type of residential or commercial property, including standalone houses, apartments, condominiums, land plots, or mixed-use buildings. The same property types available to Luxembourg citizens and EU residents are available to you.
This includes both developed properties and undeveloped land where you can build your own home or investment property. You can also purchase properties in any location throughout Luxembourg, from Luxembourg City to rural areas.
Commercial properties such as office buildings, retail spaces, and industrial properties are also available for purchase by non-EU citizens under the same conditions.
The only properties typically excluded from foreign ownership in most countries - agricultural land with special designations - do not have such restrictions in Luxembourg for non-EU buyers.
What taxes will I need to pay when buying property in Luxembourg as a non-EU citizen?
Non-EU citizens pay exactly the same taxes as Luxembourg citizens and EU residents when purchasing property.
| Tax Type | Rate | Applied To |
|---|---|---|
| Transfer Tax | 6% | Property purchase price |
| Registration Fee | 1% | Property purchase price |
| Total Transaction Tax | 7% | Property purchase price |
| Annual Property Tax | Under €100/year | Residential properties (varies by commune) |
| VAT (if applicable) | 17% | New constructions only |
| Municipal Tax | Varies by location | Some communes apply additional fees |
How much is the property registration tax and notary fees, and do they differ for foreigners?
Property registration tax and notary fees are identical for foreigners and Luxembourg residents, with no discrimination based on nationality.
The registration tax consists of 6% transfer duty plus 1% transcription fee, totaling 7% of the property purchase price. For example, on a €500,000 property, you would pay €35,000 in registration taxes.
Notary fees typically amount to approximately 1% of the property price and cover the legal documentation and registration process. On the same €500,000 property, notary fees would be around €5,000.
Total transaction costs including all taxes and fees generally range between 8-10% of the property purchase price. Additional costs may include lawyer fees, property survey costs, and mortgage arrangement fees if applicable.
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Do I need to set up a company or can I buy directly in my own name as a non-EU citizen?
You can buy property directly in your own name as a non-EU citizen without any legal requirement to set up a company.
Personal ownership is the most straightforward approach and is commonly used by international buyers. This allows you to hold the property title directly and simplifies the purchase process.
However, you also have the option to purchase through a company structure if it suits your investment strategy or tax planning needs. Both Luxembourg companies and foreign companies can acquire property in Luxembourg.
Company ownership might be beneficial for certain tax planning strategies, estate planning purposes, or if you're planning to purchase multiple properties as part of a larger investment portfolio.
Most individual buyers choose personal ownership for simplicity, while company structures are typically used for specialized investment strategies or by professional real estate investors.
Can I get a mortgage from a Luxembourgish bank if I don't have EU residency, and if so, what are the typical conditions?
Yes, non-EU citizens can obtain mortgages from Luxembourg banks, but the requirements are significantly stricter than for EU residents.
Luxembourg banks typically require non-EU buyers to provide extensive documentation including proof of income from their home country, international credit reports, employment verification, and sometimes personal guarantees or additional collateral.
Interest rates for non-EU borrowers may be slightly higher than for residents, and banks often require comprehensive insurance coverage including life insurance and property insurance as part of the loan conditions.
The approval process usually takes longer for non-EU applicants, often 4-8 weeks compared to 2-4 weeks for residents, due to the additional documentation verification required.
Some banks may require you to maintain a minimum balance in a Luxembourg bank account or establish a banking relationship before approving a mortgage application.
Is there a minimum down payment required for non-EU buyers, and how does it compare to EU residents?
Non-EU buyers typically need to provide a higher down payment compared to EU residents, usually between 20-40% of the property value.
| Buyer Type | Typical Down Payment | Maximum Loan-to-Value |
|---|---|---|
| Luxembourg Residents | 10-20% | 80-100% |
| EU Residents | 15-25% | 75-85% |
| Non-EU Citizens (Residents) | 20-30% | 70-80% |
| Non-EU Citizens (Non-Residents) | 30-40% | 60-70% |
| Investment Properties | 40-50% | 50-60% |
Are there any government incentives or subsidies I won't have access to as a non-EU buyer?
Most government incentives and subsidies for property buyers in Luxembourg are restricted to residents or EU citizens, meaning non-EU buyers are generally excluded.
First-time buyer subsidies, social housing programs, and government-backed loan guarantees are typically available only to Luxembourg residents who meet specific income and residency criteria.
Tax credits for energy-efficient renovations or green building incentives may be available to property owners regardless of nationality, but you must be a tax resident of Luxembourg to benefit from most of these programs.
Some municipal incentives for property development or renovation might be accessible to non-EU owners, but these vary significantly by commune and are usually limited in scope.
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.
Will owning property in Luxembourg give me any rights to live, work, or apply for residency in the country?
Property ownership in Luxembourg does not grant any rights to live, work, or obtain residency in the country.
Luxembourg does not have an investor visa or golden passport program based on real estate investment. Property ownership and immigration status are completely separate legal matters.
If you want to live in Luxembourg, you must apply for the appropriate residence permit through standard immigration procedures, which typically require employment, family reunification, or other qualifying circumstances.
Even owning multiple properties or expensive real estate does not create any shortcuts or special considerations in the immigration process. You must meet the same visa and residence permit requirements as any other non-EU citizen.
However, if you do obtain legal residency through other means, your property ownership can support your application by demonstrating economic ties to Luxembourg and housing stability.
If I decide to rent out the property, are there any restrictions or higher taxes for non-EU landlords?
There are no special restrictions on renting out property as a non-EU landlord, but rental income taxation depends on your tax residency status.
Non-resident landlords must pay Luxembourg income tax on rental income at progressive rates up to 45.78%, with the ability to deduct mortgage interest, maintenance costs, and property management expenses.
You must comply with all local tenancy laws, including rent control regulations, tenant protection laws, and mandatory lease registration requirements that apply to all landlords regardless of nationality.
Professional property management services are often recommended for non-resident landlords to ensure compliance with local regulations and efficient rent collection.
Withholding tax obligations may apply to rental income, and you should consult with a Luxembourg tax advisor to understand your specific obligations and any available treaty benefits.
When I sell the property later, what capital gains tax rules apply to non-EU citizens, and are there double taxation agreements I should be aware of?
Capital gains tax treatment for non-EU citizens depends on how long you owned the property and whether it was your primary residence.
Properties sold within two years of purchase are subject to speculation tax at your full marginal income tax rate, which can be as high as 45.78% for non-residents.
Properties held for more than two years are taxed at half your global income tax rate, with a maximum rate of approximately 21% for investment properties.
If the property was your primary residence for at least five years, you may qualify for complete exemption from capital gains tax, regardless of your nationality.
Luxembourg has double taxation agreements with over 80 countries that may reduce or eliminate double taxation on capital gains, but the specific treatment depends on your country of tax residency and the terms of the applicable treaty.
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.
Luxembourg offers one of Europe's most accessible real estate markets for non-EU citizens, with complete legal equality in property ownership rights and straightforward purchase procedures.
While mortgages are available to non-EU buyers, expect higher down payment requirements and more stringent documentation, and remember that property ownership provides no immigration benefits or residency rights.
Sources
- INVESTROPA - Luxembourg Real Estate for Foreigners
- Immigrant Invest - Luxembourg Real Estate Guide
- LuxToday - How to Buy Property in Luxembourg as a Foreigner
- Global Property Guide - Luxembourg Buying Guide
- Multilaw - Real Estate Guide Luxembourg
- Henley Global - Luxembourg Residence Investment
- Global Property Guide - Luxembourg Taxes and Costs
- Lawyers Luxembourg - Property Tax
- Expatica - Mortgages in Luxembourg
- Mortgage.lu - Buying Property as Cross-Border Worker