From January 1 2017, estate agents, landlords and tenants will finally be able to reach an agreement on the registration of a lease contract in the Grand Duchy.

Lease registration: how and why?

Until now, the law provided that any written lease agreement, whether commercial, professional or residential, was subject to registration and transcription by the administration of registration and domains, or by the mortgage office if the lease was entered into for more than 9 years

Clearly, the principal was to make the lease contract official, and the aim was to fix the contract’s start date in order to make it effective against third parties. Thus, neither party could ignore the existence and content of the lease contract. And this gave the tenant insurance and protection over a building put up for sale with respect to the new owner.

A registration fee was payable by the applicant, according to the duration of the lease and the amount of rent.

What changes from January 1 2017

Finally, the general public in Luxembourg often ignored this process, and risked sanctions and penalties. And between the landlord and the tenants, it wasn’t very clear who should register, and who should pay the fees.

In their fiscal reform, the government has thus decided to suspend the obligation to register and the transcription of leases. But they are still able to continue to benefit from their protection. The registration and transcription fees are also still applicable.

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