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
Buying property in Luxembourg as a foreigner means understanding the specific taxes, fees, and closing costs that apply in this small but expensive European market.
This guide breaks down every cost you will face when purchasing residential real estate in Luxembourg in 2026, from mandatory government duties to optional professional services.
We constantly update this blog post to reflect the latest rates and regulations.
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.
Overall, how much extra should I budget on top of the purchase price in Luxembourg in 2026?
How much are total buyer closing costs in Luxembourg in 2026?
As of early 2026, the estimated total buyer closing costs in Luxembourg typically range from 8% to 9.5% of the purchase price, which means a €500,000 property would require roughly €40,000 to €47,500 (around $42,000 to $50,000 USD) in additional funds.
The minimum extra budget possible in Luxembourg is around 1% to 2% of the purchase price (€5,000 to €10,000 on a €500,000 property), but this best-case scenario only applies when you qualify for the full "Bëllegen Akt" tax credit of up to €40,000 per buyer.
At the high end, buyers in Luxembourg should realistically plan for 10% to 11% of the purchase price (€50,000 to €55,000 on a €500,000 property) when accounting for mortgage deed costs, translations, legal advice, and administrative complications.
Whether your Luxembourg property closing costs fall at the low or high end depends mainly on whether you qualify for the Bëllegen Akt tax credit, whether you need a mortgage, and how much professional assistance you require with translations and legal checks.
What's the usual total % of fees and taxes over the purchase price in Luxembourg?
The usual total percentage of fees and taxes when buying property in Luxembourg is around 8% to 9.5% of the purchase price for most standard residential transactions.
The realistic range for Luxembourg property transactions spans from about 1% (with maximum tax credit eligibility) to 11% (when financing, translating documents, and hiring extra advisors), though most buyers land somewhere in the 8% to 9% bracket.
Of this total, roughly 7% goes to government taxes (the 6% registration duty plus 1% transcription duty), while the remaining 1% to 2.5% covers professional service fees including notary costs, mortgage deed registration, and optional advisory services.
By the way, you will find much more detailed data in our property pack covering the real estate market in Luxembourg.
What costs are always mandatory when buying in Luxembourg in 2026?
As of early 2026, the mandatory costs when buying property in Luxembourg include the 7% registration and transcription duties (unless reduced by a tax credit), notary fees for formalizing the deed, and basic administrative extracts required for the transfer.
Optional but highly recommended costs for buyers in Luxembourg include an independent property survey or inspection (especially for older houses), translation or interpreter services if you are not comfortable with French or German, and a tax advisor if you are buying through a company or have cross-border tax situations.
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What taxes do I pay when buying a property in Luxembourg in 2026?
What is the property transfer tax rate in Luxembourg in 2026?
As of early 2026, the property transfer tax rate in Luxembourg is 7% of the purchase price, which is split into a 6% registration duty and a 1% transcription duty.
There are no extra transfer taxes specifically for foreigners buying property in Luxembourg, as the standard 7% duties apply regardless of your nationality or residence status.
Buyers in Luxembourg generally do not pay VAT on resale residential properties, but VAT does apply to new-build or "to be constructed" properties, where you may access a super-reduced 3% VAT rate for your main residence under specific conditions.
What foreigners often call "stamp duty" in Luxembourg is effectively the 7% registration and transcription duties, which are calculated on the purchase price and collected through the notary at closing.
Are there tax exemptions or reduced rates for first-time buyers in Luxembourg?
Luxembourg offers the "Bëllegen Akt" tax credit of up to €40,000 per buyer (around $42,000 USD), which can offset most or all of the 7% registration and transcription duties if you meet the occupancy and eligibility conditions.
If you buy property through a company in Luxembourg instead of as an individual, the same 7% duties concept applies, but corporate structures change how rental profits and capital gains are taxed, and VAT considerations may become more complex.
There is a meaningful tax difference between new-build and resale properties in Luxembourg, because new-build purchases involve VAT mechanics (potentially at the super-reduced 3% rate for housing), while resale properties are generally VAT-exempt.
To qualify for the Bëllegen Akt tax credit in Luxembourg, you must personally occupy the property as your main residence, and if you later fail to meet the occupancy conditions, you may have to repay the benefit.
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.
Which professional fees will I pay as a buyer in Luxembourg in 2026?
How much does a notary or conveyancing lawyer cost in Luxembourg in 2026?
As of early 2026, notary fees and disbursements in Luxembourg typically cost around 1% to 1.5% of the purchase price, meaning a €500,000 property would incur roughly €5,000 to €7,500 (around $5,300 to $7,900 USD) in notary costs on top of the taxes the notary collects.
Notary fees in Luxembourg are charged as a percentage of the property price rather than a flat rate, with the percentage decreasing slightly as the purchase price increases.
Translation and interpreter services for foreign buyers in Luxembourg typically cost between €200 and €900 (around $210 to $950 USD), depending on whether you need documents translated (€200 to €600) or an interpreter present at signing (€300 to €900).
A tax advisor in Luxembourg is optional for simple purchases but becomes valuable for non-residents, company buyers, or short-term rental plans, with basic advisory services costing €500 to €2,000 (around $530 to $2,100 USD) for straightforward cases.
We have a whole part dedicated to these topics in our our real estate pack about Luxembourg.
What's the typical real estate agent fee in Luxembourg in 2026?
As of early 2026, the typical real estate agent fee in Luxembourg is around 3% of the sale price plus 17% VAT, which works out to roughly 3.5% total, meaning a €500,000 property would generate about €17,500 (around $18,500 USD) in agency commission.
In Luxembourg, the regulatory framework historically places the agent commission obligation on the seller, though in practice the contract can allocate costs differently, and buyers sometimes feel they pay indirectly through a higher price.
The realistic range for agent fees in Luxembourg runs from about 2.5% to 4% plus VAT, depending on the agency, property type, and how much you negotiate.
How much do legal checks cost (title, liens, permits) in Luxembourg?
Most core legal checks in Luxembourg (title verification, liens, basic extracts) are included in the notary's workflow and disbursements, but extra legal review from an independent lawyer can cost €800 to €2,500 (around $850 to $2,650 USD) for additional comfort.
Property valuation fees in Luxembourg, typically required when financing through a bank, range from €300 to €1,000 (around $320 to $1,060 USD) depending on the property and the bank's requirements.
The most critical legal check that should never be skipped in Luxembourg is the notary's encumbrance and lien verification, as this protects you from inheriting someone else's debts or discovering restrictions after purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Luxembourg.
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What hidden or surprise costs should I watch for in Luxembourg right now?
What are the most common unexpected fees buyers discover in Luxembourg?
The most common unexpected fees in Luxembourg include mortgage deed and registration costs (adding 0.5% to 1% if you borrow), condominium reserve fund contributions or upcoming building works, 3% housing VAT paperwork complications if you do not meet conditions, and cross-border administrative friction like extra translations and certifications.
Buyers in Luxembourg can inherit unpaid condominium charges or local charges linked to the property, so it is essential that the notary's checks fully capture any outstanding amounts before closing.
Luxembourg is not immune to scams involving fake "reservation fees" or fake agents, especially targeting foreign buyers and renters, so you should never pay any fee before verifying the counterparty and anchoring payments through the official notary escrow process.
Fees that are usually not disclosed upfront in Luxembourg include mortgage handling fees and early repayment penalties, future condominium works requiring special contributions, translation and certification costs, and extra tax advisory fees for non-standard situations.
In our property pack covering the property buying process in Luxembourg, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Luxembourg?
Buying a tenanted property in Luxembourg can add €500 to €2,000 (around $530 to $2,100 USD) in extra costs for lease review, document verification, legal advice on the tenancy, and administrative handover procedures.
When you buy a tenanted property in Luxembourg, you inherit the existing lease agreement, meaning you must honor the tenant's rights and the contract terms until the lease naturally expires or can be legally terminated.
Terminating an existing lease immediately after purchase in Luxembourg is generally not possible, as tenant protection laws require valid legal grounds and proper notice periods, which can take months or even years depending on the lease type.
A sitting tenant in Luxembourg typically affects the property's market value negatively (sometimes 5% to 15% below vacant equivalents), but this discount can work in your favor if you are willing to wait or plan to keep renting out the property.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Luxembourg.
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 fees are negotiable, and who really pays what in Luxembourg?
Which closing costs are negotiable in Luxembourg right now?
The negotiable closing costs in Luxembourg include the real estate agent commission (the 3% plus VAT is market convention, not a legal requirement), bank handling fees, optional advisor fees, and sometimes the scope of legal or technical inspections.
The closing costs that are fixed by law and cannot be negotiated in Luxembourg are the 7% registration and transcription duties (unless you qualify for credits or reliefs), most notarial pass-through taxes, and core administrative charges mandated by regulation.
Buyers in Luxembourg can realistically achieve 10% to 30% reductions on negotiable fees like agent commissions and bank charges, especially when they compare multiple providers or demonstrate they are ready to proceed quickly.
Can I ask the seller to cover some closing costs in Luxembourg?
Asking a seller in Luxembourg to cover closing costs is uncommon but possible, especially on properties that have been listed for a long time or in slower market conditions.
The closing costs sellers in Luxembourg are most commonly willing to negotiate on include partial contributions toward agency fees (if not already fully allocated to them) or a price reduction that effectively offsets some of your expenses.
Sellers in Luxembourg are more likely to accept covering some closing costs when the property has been on the market for several months, when it needs repairs or has poor energy performance, or when they are under time pressure to sell.
Is price bargaining common in Luxembourg in 2026?
As of early 2026, price bargaining is more possible in Luxembourg than it was during the peak years of 2021 and 2022, because official government reporting shows a market that has slowed and stabilized, giving buyers more negotiating power.
Buyers in Luxembourg can commonly negotiate 2% to 7% below the asking price for typical listings, and discounts of 8% to 12% are achievable when the property needs work, has weak energy performance, or when the seller is time-pressured.
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What monthly, quarterly or annual costs will I pay as an owner in Luxembourg?
What's the realistic monthly owner budget in Luxembourg right now?
A realistic monthly owner budget in Luxembourg (excluding your mortgage payment) is around €300 to €500 (roughly $320 to $530 USD) for typical properties, covering building charges, insurance, maintenance, and reserves.
The main recurring expense categories in Luxembourg include condominium or building management charges (for apartments), home insurance, routine maintenance, and contributions to sinking funds for future repairs.
Monthly owner costs in Luxembourg range from about €200 to €700 (around $210 to $740 USD), with apartments at the higher end due to copropriété charges (€250 to €700) and houses at the lower end but with more variable maintenance needs (€200 to €600).
The monthly cost that varies most in Luxembourg is condominium building charges, because they depend heavily on the building's age, amenities (like elevators or parking), management quality, and whether major works are planned or underway.
You can see how this budget affect your gross and rental yields in Luxembourg here.
What is the annual property tax amount in Luxembourg in 2026?
As of early 2026, the annual property tax (impôt foncier) in Luxembourg is relatively modest compared to other countries, often amounting to just a few hundred euros per year, though the exact amount depends on your commune and the property's assessed base.
The realistic range for annual property taxes in Luxembourg runs from roughly €100 to €1,000 (around $105 to $1,060 USD), with most standard residential properties falling somewhere in the €200 to €500 bracket depending on location and size.
Property tax in Luxembourg is calculated by multiplying the property's assessed unit value (Einheitswert) by a base rate, and then multiplying that result by the commune's specific multiplier, which varies by municipality.
Some property tax exemptions or reductions may be available in Luxembourg for specific situations, but these are limited, and you should check directly with your commune for any programs that might apply to your circumstances.
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.
If I rent it out, what extra taxes and fees apply in Luxembourg in 2026?
What tax rate applies to rental income in Luxembourg in 2026?
As of early 2026, rental income in Luxembourg is taxed on a net basis at your applicable personal income tax rate, which ranges from 0% to 42% depending on your total taxable income and filing status.
Landlords in Luxembourg can deduct expenses from rental income, including maintenance and repairs, mortgage interest, property management fees, depreciation on the building (excluding land), and other costs directly related to earning the rental income.
After deductions, the effective tax rate on Luxembourg rental income for typical landlords might range from roughly 15% to 35% depending on your income bracket, the expenses you can claim, and your personal tax situation.
Foreign property owners in Luxembourg are generally taxed on their Luxembourg-source rental income under non-resident rules, and while the rates are similar to resident rates, tax treaties between Luxembourg and your home country may affect how you report and pay taxes.
Do I pay tax on short-term rentals in Luxembourg in 2026?
As of early 2026, short-term rental income in Luxembourg is taxable and may also trigger additional compliance requirements, including registration obligations and potentially VAT considerations depending on the scale and nature of your rental activity.
Short-term rental income in Luxembourg can be taxed differently than long-term rental income because frequent furnished lettings may cross into commercial activity territory, which brings VAT obligations and different tax treatment that a standard residential landlord does not face.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Luxembourg.
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If I sell later, what taxes and fees will I pay in Luxembourg in 2026?
What's the total cost of selling as a % of price in Luxembourg in 2026?
As of early 2026, the total cost of selling a residential property in Luxembourg typically ranges from 3% to 5% of the sale price, depending on whether you use an agent and whether you have mortgage release costs.
The realistic range for total selling costs in Luxembourg spans from about 1% to 2% (if you sell privately without an agent and have no mortgage) up to 5% or more (if you use a full-service agent and need to handle mortgage discharge fees).
The main cost categories that make up selling expenses in Luxembourg include real estate agent commission (if applicable), notarial costs for the sale deed, potential mortgage early repayment or release fees, and minor administrative and preparation expenses.
The single largest contributor to selling expenses in Luxembourg is typically the real estate agent commission, which at around 3% plus VAT can easily represent 80% or more of your total selling costs.
What capital gains tax applies when selling in Luxembourg in 2026?
As of early 2026, capital gains on property sales in Luxembourg are taxed at rates that depend on how long you held the property, with short-term gains (under two years) taxed at your full income tax rate and long-term gains receiving more favorable treatment.
The most important exemption to capital gains tax in Luxembourg applies to your main residence, which can be sold tax-free if you meet the occupancy conditions, and properties held for very long periods may also benefit from reduced rates or exemptions.
Foreigners selling property in Luxembourg do not face a special surcharge, but non-residents are taxed on Luxembourg-source real estate gains under non-resident rules, and you should verify how any tax treaty with your home country affects your situation.
Capital gain in Luxembourg is generally calculated as the sale price minus the original purchase price (including acquisition costs), with adjustments allowed for documented improvements and inflation indexing in certain cases.
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 |
|---|---|---|
| Guichet.lu - Bëllegen Akt | It's Luxembourg's official government citizen portal for tax rules. | We used it to confirm the 7% registration and transcription duties and the €40,000 tax credit cap. We also verified the occupancy conditions for qualifying buyers. |
| Portail de la fiscalité indirecte (AED) | It's the Ministry of Finance portal for indirect taxes including VAT. | We used it to confirm the 17% standard VAT and 3% super-reduced housing VAT rates. We grounded the VAT discussion in official tax authority data. |
| Spuerkeess Bank | It's a major Luxembourg bank with reliable practical guides. | We used it to verify the 6% plus 1% duty breakdown in clear terms. We cross-checked government figures with this trusted local source. |
| Ministry of Justice - Notary Page | It's the official framework for notary roles in Luxembourg. | We used it to confirm that property transfers require notarial formalization. We justified why notary costs are always mandatory for buyers. |
| Observatoire de l'Habitat Market Report | It's a government publication using official notarial transaction data. | We used it to describe current market conditions and negotiation leverage in early 2026. We relied on it only for market context, not tax rates. |
| PwC Tax Summaries | It's a widely used technical tax reference from a major global firm. | We used it to verify capital gains holding period logic and reduced rates for long-term holdings. We triangulated it with official government sources. |
| Chambre des Salariés (CSL) | It's an official chamber document discussing agent commission regulations. | We used it to explain that Luxembourg has a legal framework around who owes agent commissions. We kept the agency fee discussion grounded in official references. |
| Junglinster Commune - 2026 Property Tax Notice | It's an official municipal notice showing actual 2026 tax multipliers. | We used it as a concrete example proving property tax rates are set locally by commune. We showed why buyers must check their specific municipality for accurate figures. |
| Guichet.lu - Rental Income Reporting | It's the government's practical guide for taxpayers reporting rental income. | We used it to confirm that taxable rental income is calculated net of deductible expenses. We built the rental tax section to match how individuals actually file. |
| Legilux | It's Luxembourg's official portal for laws and regulations. | We used it to anchor legal references for notary tariffs and commission rules. We treated it as the authoritative backstop for anything rule-driven. |
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