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 Europe's most expensive property markets, but also one of the most accessible for foreigners since there are no nationality-based restrictions on buying residential real estate.
The real risks in Luxembourg are not about legal barriers but about overpaying in a fast-moving market, signing binding contracts too early, or trusting the wrong intermediary with your money.
This guide covers everything foreign buyers need to know about scams, grey areas, hidden costs, and due diligence in Luxembourg in 2026, and we constantly update this blog post with the latest information.
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.
How risky is buying property in Luxembourg as a foreigner in 2026?
Can foreigners legally own properties in Luxembourg in 2026?
As of early 2026, Luxembourg allows foreigners to buy and own residential property with the same rights as Luxembourg citizens, regardless of whether you are from the EU or outside Europe.
The main conditions that apply to foreigners buying property in Luxembourg are not about ownership itself but about eligibility for tax benefits like the Bellegen Akt tax credit, which requires you to live in the property as your primary residence for at least two years after purchase.
Since direct ownership is fully permitted in Luxembourg, foreigners do not need to use any special legal structures like companies or nominees to buy residential apartments or houses, they simply purchase in their own name through a notary.
[VARIABLE FOREIGNER-RIGHTS]What buyer rights do foreigners actually have in Luxembourg in 2026?
As of early 2026, foreign buyers in Luxembourg enjoy the same legal protections as local buyers, including the right to enforce a signed compromis de vente (preliminary sales contract) and to have the notary verify clear title before completing the purchase.
If a seller breaches a contract in Luxembourg, foreign buyers can pursue legal action through Luxembourg courts to either force the sale to complete or claim damages, and Luxembourg's judicial system is considered efficient and reliable by EU standards.
The most common buyer right that foreigners mistakenly assume they have in Luxembourg is the ability to withdraw from a compromis de vente without penalty, but in reality, once you sign the compromis, you are legally bound unless you included specific protective conditions (called conditions suspensives) for financing or other contingencies.
How strong is contract enforcement in Luxembourg right now?
Contract enforcement for real estate transactions in Luxembourg is considered very reliable compared to many other countries, with the country ranking among the top performers in Europe for judicial independence and civil justice efficiency according to EU and international benchmarks.
The main weakness in contract enforcement that foreigners should be aware of in Luxembourg is that while courts work well, going to court takes time and money, so your best protection is always to structure the compromis de vente correctly from the start rather than relying on enforcement after problems arise.
By the way, we detail all the documents you need and what they mean in our property pack covering Luxembourg.
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.
Which scams target foreign buyers in Luxembourg right now?
Are scams against foreigners common in Luxembourg right now?
Real estate scams targeting foreigners in Luxembourg are relatively rare compared to many other countries, but they do exist, particularly in the form of payment redirection schemes and fake rental or sale listings that exploit the high demand and urgency in the Luxembourg property market.
The type of property transaction most frequently targeted by scammers in Luxembourg is the rental market, especially for apartments in high-demand areas like Luxembourg City's Gare, Bonnevoie, or Kirchberg neighborhoods, where competition is fierce and newcomers may accept unusual payment requests.
The profile of foreign buyer most commonly targeted by scammers in Luxembourg is the newly arrived expat who is searching remotely from abroad, does not yet have local contacts, and feels pressure to secure housing quickly before starting a new job.
The single biggest warning sign that a deal may be a scam in Luxembourg is when someone asks you to pay money before you have physically visited the property and met the seller or agent in person, especially if they want payment through untraceable methods like prepaid cards or wire transfers to foreign accounts.
What are the top three scams foreigners face in Luxembourg right now?
The top three scams that foreigners most commonly face when buying property in Luxembourg are payment redirection fraud (where someone impersonates the notary or agent and sends fake bank details), phantom listings that require upfront deposits for properties that do not exist, and under-declaration schemes where a seller pressures you to declare a lower price to reduce taxes.
The most common scam in Luxembourg typically unfolds when a scammer posts an attractive listing at a below-market price, communicates only by email, claims to be abroad or unavailable for viewings, and then asks for a deposit to "reserve" the property before the victim realizes the property does not exist or the person is not the real owner.
The single most effective way to protect yourself from payment redirection is to always verify bank details by phone using a number you found independently, from phantom listings is to never pay anything before visiting the property in person, and from under-declaration schemes is to insist that the full price appears in the notarial deed because the legal and financial risks to you are severe.
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.
How do I verify the seller and ownership in Luxembourg without getting fooled?
How do I confirm the seller is the real owner in Luxembourg?
The standard verification process to confirm the seller is the real owner in Luxembourg involves having your notary obtain an official ownership certificate from the Administration du Cadastre et de la Topographie (ACT) and conduct a mortgage check through the Bureau des Hypotheques, which together confirm who legally owns the property and whether any debts are attached to it.
The official document foreigners should check to verify ownership in Luxembourg is the cadastral extract (extrait cadastral) which can be ordered online through the Geoportail website and shows the registered owner's name, parcel number, and property boundaries.
The most common trick fake sellers use to appear legitimate in Luxembourg is presenting forged or outdated documents and creating urgency by claiming another buyer is ready to sign, but this tactic is rare in Luxembourg because the notary-led system makes it difficult to complete a fraudulent sale when proper procedures are followed.
Where do I check liens or mortgages on a property in Luxembourg?
The official registry where you check liens or mortgages on a property in Luxembourg is the Bureau des Hypotheques (Mortgage Office), which is part of the Administration de l'Enregistrement et des Domaines (AED), and your notary will conduct this search as part of the standard purchase process.
When checking for liens in Luxembourg, you should request a full mortgage status report that covers the specific property using its cadastral parcel number and the owner's identity data, because the system requires exact inputs to return accurate results.
The type of lien or encumbrance most commonly missed by foreign buyers in Luxembourg is the unpaid co-ownership charges in apartment buildings, which can become the new owner's responsibility, so it is essential to request the latest financial statements and meeting minutes from the syndic (building manager) before signing the compromis.
It's one of the aspects we cover in our our pack about the real estate market in Luxembourg.
How do I spot forged documents in Luxembourg right now?
The most common type of forged document used in property scams in Luxembourg is a fake rental agreement or ownership certificate presented by someone impersonating the real owner, though this is rare because the notary system provides strong verification at the final sale stage.
Specific visual or procedural red flags that indicate a document may be forged in Luxembourg include inconsistent formatting, missing official stamps or notary signatures, names or parcel numbers that do not match across documents, and any pressure to complete the transaction without allowing time for verification.
The official verification method you should use to authenticate documents in Luxembourg is to have your notary independently obtain fresh copies of all key documents directly from the ACT (cadastral office) and AED (registration office) rather than accepting documents forwarded by the seller or agent.
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 "grey-area" practices should I watch for in Luxembourg?
What hidden costs surprise foreigners when buying a property in Luxembourg?
The three most common hidden costs that foreigners overlook when buying property in Luxembourg are the registration and transcription duties totaling 7% of the purchase price (around 35,000 euros or 37,000 USD on a 500,000 euro property), the co-ownership reserve fund contribution for apartments (often 1,000 to 5,000 euros or 1,050 to 5,250 USD), and mortgage registration fees if you are financing the purchase (typically 1% to 2% of the loan amount).
The hidden cost most often deliberately concealed by sellers or agents in Luxembourg is upcoming major co-ownership works (like facade renovation or elevator replacement) that have been voted but not yet billed, and this sometimes happens because sellers hope to close before the charges hit, so you should always request the latest general assembly minutes and the planned works budget from the syndic.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Luxembourg.
Are "cash under the table" requests common in Luxembourg right now?
Cash under the table requests in property transactions in Luxembourg are not standard practice, but they do occur occasionally as a temptation because registration duties of 7% create an incentive for some sellers to try to reduce the declared price.
The typical reason sellers give for requesting undeclared cash payments in Luxembourg is to lower the tax burden for both parties or to account for "furniture" or "improvements" that they claim should not be part of the official price.
The legal risks foreigners face if they agree to an undeclared cash payment in Luxembourg include your bank potentially refusing the mortgage if the paper trail does not match, exposure to tax fraud charges with penalties and back-taxes, and losing legal protection in any future dispute because the true transaction terms are not documented.
Are side agreements used to bypass rules in Luxembourg right now?
Side agreements used to bypass official rules in property transactions in Luxembourg are not widespread, but they sometimes happen through arrangements like separate "furniture purchase" contracts or informal renovation credits that keep part of the transaction off the official deed.
The most common type of side agreement used to circumvent regulations in Luxembourg is a separate furniture or fitting agreement where the buyer pays extra money outside the notarial deed, supposedly for items like kitchen appliances or built-in wardrobes, which reduces the taxable purchase price.
The legal consequences foreigners face if a side agreement is discovered by authorities in Luxembourg include reassessment of the full transaction value with additional registration duties owed, potential fines for tax fraud, and the risk that the side agreement will not be enforceable in court if a dispute arises.
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.
Can I trust real estate agents in Luxembourg in 2026?
Are real estate agents regulated in Luxembourg in 2026?
As of early 2026, real estate agents in Luxembourg are regulated and must hold a business permit (autorisation d'etablissement) issued by the Ministry of the Economy, which requires professional qualifications, proof of good character, and mandatory civil liability insurance.
A legitimate real estate agent in Luxembourg should have completed the regulated professional training pathway (often through House of Training), hold a valid business permit, and carry proof of professional liability insurance that protects clients in case of errors or negligence.
Foreigners can verify whether an agent is properly licensed in Luxembourg by asking the agency directly for their permit number and insurance certificate, or by checking with the Ministry of the Economy's business permit registry, and a legitimate agency will not be offended by this request.
Please note that we have a list of contacts for you in our property pack about Luxembourg.
What agent fee percentage is normal in Luxembourg in 2026?
As of early 2026, the normal real estate agent fee in Luxembourg for residential sales is approximately 3% of the sale price plus 17% VAT, which is relatively low compared to neighboring countries like France or Germany.
The typical range of agent fee percentages that covers most residential transactions in Luxembourg is 2.5% to 3.5% plus VAT, with some variation depending on the property type, price level, and whether the agent is handling both buyer and seller sides.
In Luxembourg, the seller typically pays the agent fee under a sales mandate, and this commission is usually already included in the advertised listing price, though buyers should always confirm this in writing before proceeding.
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 due diligence actually prevents disasters in Luxembourg?
What structural inspection is standard in Luxembourg right now?
The standard structural inspection process for property purchases in Luxembourg is buyer-initiated, meaning there is no legal obligation for the seller to provide a technical inspection report, so you must arrange and pay for your own independent inspection if you want one.
A qualified inspector in Luxembourg should check the roof condition, facade and wall integrity, signs of damp or water infiltration, electrical and plumbing systems, heating installation age and efficiency, and the energy performance certificate (which is mandatory).
The type of professional qualified to perform structural inspections in Luxembourg is typically an architect, a building engineer (ingenieur-conseil), or a specialized inspection company like ImmoPass, with fees generally ranging from 500 to 1,500 euros depending on property size.
The most common structural issues that inspections reveal in properties in Luxembourg are damp and moisture problems (especially in older buildings and valley areas), inadequate insulation that fails to meet current energy standards, and hidden defects from DIY renovations done without proper permits.
How do I confirm exact boundaries in Luxembourg?
The standard process for confirming exact property boundaries in Luxembourg is to obtain a cadastral extract from the ACT (Administration du Cadastre et de la Topographie) through the Geoportail website, which shows the official parcel boundaries, and to physically compare this with what you see on the ground.
The official document that shows the legal boundaries of a property in Luxembourg is the cadastral map (plan cadastral), which can be ordered online and shows parcel numbers, boundaries, and the commune where the property is located.
The most common boundary dispute that affects foreign buyers in Luxembourg involves accessory lots like parking spaces, cellars, or garden strips that were assumed to be included but are actually registered separately or shared with neighbors.
The professional you should hire to physically verify boundaries on the ground in Luxembourg is a sworn land surveyor (geometre), who can compare the cadastral records with the actual property markers and identify any discrepancies before you sign.
What defects are commonly hidden in Luxembourg right now?
The top three defects that sellers commonly conceal from buyers in Luxembourg are damp and moisture problems (common in older stock), noise issues from traffic or neighbors (especially near Gare and major roads), and upcoming co-ownership major works that have been voted but not yet invoiced, and concealment of these defects sometimes happens because sellers hope to close before problems become obvious.
The inspection technique or tool that helps uncover hidden defects in Luxembourg is infrared thermography (thermal imaging) for detecting insulation gaps and moisture, combined with a blower-door test for air leakage, and a thorough review of co-ownership meeting minutes for any planned works.
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.
What insider lessons do foreigners share after buying in Luxembourg?
What do foreigners say they did wrong in Luxembourg right now?
The most common mistake foreigners say they made when buying property in Luxembourg is signing the compromis de vente too quickly under pressure without including proper protective conditions for financing approval or inspection results.
The top three regrets foreigners most frequently mention after buying in Luxembourg are underestimating the total acquisition costs (especially the 7% registration duties), not requesting the co-ownership documents early enough to discover planned major works, and fixating on a single "expat obvious" neighborhood like Kirchberg or Belair while ignoring comparable options like Merl, Limpertsberg, Gasperich, or nearby communes like Strassen and Bertrange.
The single piece of advice experienced foreign buyers most often give to newcomers in Luxembourg is to never sign anything under time pressure, even if you are told another buyer is ready to take the property, because this urgency tactic is common and usually exaggerated.
The mistake foreigners say cost them the most money or caused the most stress in Luxembourg is trusting verbal promises about property condition or included items without putting everything in writing in the compromis de vente, which left them with no legal recourse when reality did not match expectations.
What do locals do differently when buying in Luxembourg right now?
The key difference in how locals approach buying property in Luxembourg compared to foreigners is that locals tend to be more rigid about following the notary-centered process with minimal informal negotiation, and they are quicker to walk away from deals that feel rushed or where documentation is incomplete.
The verification step locals routinely take that foreigners often skip in Luxembourg is demanding the full co-ownership pack (including recent general assembly minutes, financial statements, and planned works schedule) before agreeing on price, because locals know that upcoming facade or elevator work can add tens of thousands of euros in charges.
The local knowledge or network advantage that helps locals get better deals in Luxembourg is their awareness of segment-specific price trends, for example knowing that houses in the northern part of the country like Ettelbruck or Diekirch are significantly cheaper than the south, and using official STATEC data rather than headline market talk to negotiate realistically.
Don't buy the wrong property, in the wrong area of Luxembourg
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
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 (Luxembourg Government Portal) | Official government portal for all public services in Luxembourg. | We used it to explain the legal effect of the compromis de vente and the conditions for the Bellegen Akt tax credit. We also referenced it for real estate agent licensing requirements. |
| Administration du Cadastre et de la Topographie (ACT) | Official custodian of Luxembourg's cadastral and land registry data. | We used it to explain how property ownership is verified through cadastral extracts. We also referenced it for boundary confirmation procedures. |
| Portail de la fiscalite indirecte | Government portal explaining mortgage and lien search procedures. | We used it to explain how mortgage checks work and what inputs are required. We also referenced it for document verification methods. |
| STATEC (Luxembourg Statistics Portal) | Official national statistics institute of Luxembourg. | We used it to anchor market context with official price data and trends. We referenced it for segment-specific price differences between houses and apartments. |
| Police Grand-Ducale Luxembourg | Official law enforcement guidance on active scam patterns. | We used it to identify real scam mechanics and impersonation tactics. We also referenced it for red flag behaviors to watch during transactions. |
| European Commission Rule of Law Report | Official EU diagnostic on justice systems and governance. | We used it to assess contract enforcement reliability in Luxembourg. We also referenced it to compare Luxembourg's judicial system with EU standards. |
| World Justice Project Rule of Law Index | Widely used independent index based on surveys across countries. | We used it to triangulate rule of law strength from a non-EU perspective. We also used it to connect legal rules to real-world enforcement experiences. |
| atHome.lu | One of Luxembourg's most established consumer real estate platforms. | We used it as a private-sector cross-check for typical buyer costs and agent commission norms. We validated this against official regulatory sources. |
| ImmoPass Luxembourg | Leading technical inspection organization for real estate in Luxembourg. | We used it to explain inspection standards and common defect patterns. We also referenced it for typical inspection costs and what professionals check. |
| Banque centrale du Luxembourg (BCL) | Central bank's formal risk assessment for the financial system. | We used it to frame housing market risk without relying on agency marketing. We also referenced it for financing conservatism recommendations. |
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.