St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Luxembourg

Foreigners can freely buy, sell and rent out real estate in Luxembourg.

Statistics confirm the liquidity of investments: residential real estate prices grow every quarter by an average of 2.6%. Five years ago, an apartment of 100 m² cost an average of €620,000, and today it is sold for €1,005,000.

€10,050 Average price per 1 m²
of housing in Luxembourg
2.6% Average price per 1 m²
increase per quarter
8,7—11,7% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Luxembourg

€1.3 million

Furnished apartment
with 3 bedrooms and 2 bathrooms

€900,000

Apartment of 90 m² in Luxembourg with 3 bedrooms and 1 bathroom

€650,000

Apartment in a 30-minute drive from Luxembourg

What do investors buy?

The most expensive real estate is in the capital, Luxembourg. The price of real estate does not depend on the location but the quality of housing: its area, number of bathrooms and repairs.

Apartments

  • penthouses
  • duplexes
  • apartments

Houses

  • townhouses
  • mansions
  • houses with terraces

Luxembourg residence permit or citizenship by real estate investment

Obtaining a Luxembourg residence permit or citizenship is not connected with purchasing real estate. Luxembourg has a program for getting a residence permit by investing at least €500,000 in the country’s economy, but it does not provide a real estate option.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay mandatory registration and notary fees. The associated costs are approximately 8.7% to 11.7% of the purchase agreement value.

When buying an apartment worth €1 mln, the investor will spend €1.087 mln, taking additional costs into account.

8.7—11.7% Of the contract value are related costs for the purchase of housing in Luxembourg
Purchase expenses
Registration fee

Depends on the region

7.2—10.2%

Of the transaction amount,
the transcript tax included

Notary fee
1.5%

Taxes

Owners pay an annual property tax of 1.5% to 10% of the cadastral value. The municipality sets the tax rate depending on the property type.

Rental income is included in the income tax base. The income tax rate is progressive from 0% to 42%.

€2,616 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€150—300 

per month

Internet, TV and telephone
€45—75 

per month

Real estate sellers pay a capital gains tax on the difference between the sale and purchase prices:

  • 45.8% if the seller has owned the property for
    less than two years;
  • 22.9% in other cases.

The agency fee is 3.5%.

22.9—45.8% Capital gains tax on the sale
of real estate in Luxembourg
Expenses on the sale
Capital gains tax

Paid on the difference between the sale and purchase prices

22.9—45.8%
Agency fee
3.5%

VAT included