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

How the residential property price index is growing in Luxembourg

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.

40+ guides on European countries

Learn the prices for purchasing and renting a property in each country, the market dynamics and taxes on buying and selling real estate.

Portugal Malta Austria Greece Andorra Italy Turkey Montenegro Switzerland Cyprus Spain Germany France

All countries

Get a real estate market analysis of all European countries

Download the guide

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

Igor Buglo

Prepared a guide on investing in real estate in Luxembourg