According to STATEC’s figures, more than two-thirds of Luxembourg residents own their homes. Here are a few reminders for those who are reluctant to make the jump.

Consider your budget

Before making your first real estate purchase, you will need to consider your budget. Begin by estimating your borrowing capacity by contacting the funding body(ies) of your choice. An online simulation could be useful as a first step to get an overall idea of your situation. Afterwards, an appointment with a bank advisor will be necessary to get a detailed and customized offer.

Ancillary costs (notary, financing, possible agency fees, etc.) must also be considered to avoid unpleasant surprises.

Finding your property

Once you have set your budget, search for properties using your criteria (type of property, location, etc.). We recommend reacting quickly and making as many visits as possible, because real estate property sells quickly in Luxembourg. Don’t hesitate to subscribe to e-mail alerts offered by various real estate portals to make sure that you are one of the first to bid to buy or rent a property.

Becoming an owner

In the Grand Duchy of Luxembourg, the cost of renting is higher than the cost of current market interest rates. Thus, becoming the owner of your property is more interesting than being a tenant.

In addition, unlike in some of the countries which border it, property tax in Luxembourg is less than €100 per year, which is a significant advantage when considering buying property in the Grand Duchy. Housing tax, for its part, is almost non-existent in Luxembourg. Because of these provisions, the tax burden felt by taxpayers is negligible.

Another considerable advantage in the event you sell your main residence is the fact that the capital gains thus realized are, in principle, non-taxable, whatever their amount.

Don’t hesitate to inquire about the benefits to which you may be entitled. An acquisition premium of up to €9,700 may be granted to you and marked-up in case you purchase a semi-detached house, a townhouse or a condominium. More information