Property Investment in Luxembourg as a Foreigner

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%. Seven years ago, an apartment of 100 m²  cost an average of €620,000, and today it is sold for €1,500,000.

€10,500

Average price per 1 m²

2.6%

Average price growth per quarter

8.7—11.7%

Associated costs, of the property value

How the residential property price index is growing in Luxembourg

blok

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 with 3 bedrooms and 1 bathroom

€650,000

Apartment in a 30-minute drive from Luxembourg

Schedule a meeting

Individual selection of investment properties

  • Discuss your tasks and goals

  • Choose between properties from reliable developers

  • Get fully prepared and verified documents for a purchase

Prefer messengers?

whatsapp icon

WhatsApp

Luxembourg residency or citizenship by real estate investment

A real estate investment does not directly lead to becoming a resident or citizen of Luxembourg. 

However, Luxembourg grants residence permits by investment of at least €500,000 in the country’s economy, but it does not provide a real estate option.

Discover real estate market trends in 41 European countries

Discover real estate market trends in 41 European countries

  • Master the residency process

  • Get expert tips and documents

  • Estimate costs accurately

Download practical guide
license iconTrusted by 5000+ investors

Taxes and associated costs

Purchase taxes

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.

Registration fee depends on the region7.2—10.2% of the transaction amount, the transcript tax included
Notary fee1.5%

Ownership taxes

The tax base is determined as the unit value set by the real estate assessment department, "section des évaluations immobilières," multiplied by the assessment coefficient, which ranges between 0.7 and 1%.

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

Electricity, gas, water, heating, and garbage collection€230—260 per month
Internet, TV, and telephone€40—80 per month

Sale taxes

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

  • 42% if the seller has owned the property for less than two years;

  • 21% in other cases.

The agency fee is 3.5%.

Capital gains tax — paid on the difference between the sale and purchase prices21—42%
Agency fee3.5%, VAT included

Countries to buy a property and get residency or citizenship

We offer proven properties that comply with the conditions of government programs for investors. You can buy real estate and obtain a residence permit or citizenship.

Country and status
Investments
Status
Time required
mt-flagmt-flag
Malta29 properties

€375,000+

Permanent residency

6+ months

Show 29 properties

€375,000+Permanent residency6+ months
arrowRight icon
gd-flaggd-flag
Grenada44 properties

$270,000+

Citizenship

8+ months

Show 44 properties

$270,000+Citizenship8+ months
arrowRight icon
ae-flagae-flag
UAE158 properties

AED 750,000+

Residence permit

2+ months

Show 158 properties

AED 750,000+Residence permit2+ months
arrowRight icon
es-flages-flag
Spain38 properties

Not limited

Residence permit

4+ months

Show 38 properties

Not limitedResidence permit4+ months
arrowRight icon
pt-flagpt-flag
Portugal68 properties

Not limited

Residency after D Visas

6+ months

Show 68 properties

Not limitedResidency after D Visas6+ months
arrowRight icon

40+ guides with European countries

Find out how much it costs to buy and rent real estate in each country, what the market dynamics are and what taxes you need to pay when buying and selling.

no-flagProperty Investment in Norway as a Foreigner

Foreigners can freely buy, lease and sell housing and commercial real estate in Norway. Statistics confirm the liquidity of investments:...

€5,266

Average price per 1 m²

1,2%

Average price growth per quarter

me-flagProperty Investment in Montenegro as a Foreigner

Foreigners can buy and sell real estate or rent it out with few restrictions. Foreigners are prohibited from buying agricultural land...

€2,100

Average price per 1 m²

24%

Inflation-adjusted price growth in 2024, year-on-year

lv-flagProperty Investment in Latvia as a Foreigner

Foreigners can freely buy, sell and rent out real estate in Latvia. The sale of land to foreigners is limited: to buy a plot with a...

€2,500

Average price per 1 m²

250 000 €

Real estate investment for residency

Igor Buglo

Material prepared by Igor Buglo, Head of the Maltese office, MBA

Updated:

Frequently asked questions

  • Can a foreigner buy a house in Luxembourg?

    Yes, foreigners can buy property in Luxembourg without any restrictions. Whether you’re an EU or non-EU citizen, there are no limitations on foreign property ownership, making it accessible for international investors and residents.

  • Is Luxembourg real estate expensive?

    Yes, Luxembourg has one of the most expensive real estate markets in Europe. Prices have been steadily rising due to high demand, limited supply, and a strong economy. Property in Luxembourg City and surrounding areas can be particularly costly, with high per-square-metre prices compared to other European countries.

  • How much does it cost to buy a house in Luxembourg?

    The cost of buying a house in Luxembourg varies depending on the location, size, and condition of the property. In Luxembourg City, prices can reach €10,500 or more per square metre, with an average home costing between €1 million and 2 million. Outside the capital, prices are lower but still significant, often ranging €500,000 to 1 million.

  • Is it worth it to buy a house in Luxembourg?

    Property investment in Luxembourg can be a worthwhile investment, especially given the country’s strong economy, political stability, and high standard of living. Property values have historically appreciated, making it attractive for long-term investors.

    However, the high upfront costs and ongoing expenses such as property taxes and maintenance should be carefully considered.