Buying Property in Luxembourg: The 2026 Expat Guide

Housing·7 min read·Updated July 3, 2026
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There are no restrictions on foreigners buying property in Luxembourg, EU or non-EU. What catches newcomers out are the transaction costs and the paperwork sequence. Here's the full picture.

What property costs

Existing apartments in Luxembourg City range widely by district: Kirchberg roughly €7,600–14,800/m², Belair €11,000–14,000/m², Limpertsberg €9,500–12,500/m². Esch-sur-Alzette, the second city, offers the most affordable entry at roughly €4,300–9,000/m². Concretely, a 70 m² apartment runs about €535,000–1,040,000 in Kirchberg versus €302,000–627,000 in Esch.

Transaction costs: budget ~2–9% on top

  • Registration duties: 7% of the price (6% registration + 1% transcription). In Luxembourg City, a municipal surcharge can apply to non-primary residences.
  • Notary fees: ~1–1.5%. The notary is mandatory and handles the deed, searches and registration.
  • Mortgage deed costs if you borrow, added to the notary bill.

The Bëllegen Akt: your biggest saving

If you buy your primary residence, the "Bëllegen Akt" tax credit wipes out registration duties up to €40,000 per buyer (€80,000 for a couple) buying together. You must live in the property yourself (commitment of at least two years). For most first purchases this reduces the effective registration cost to zero. It's claimed directly in the notarial deed: tell your notary.

Financing rules

Luxembourg applies regulator-set loan-to-value caps:

Buyer profileMax LTV
First-time buyer, primary residence100%
Repeat buyer, primary residence90%
Rental / secondary property80%

Even at 100% LTV you still need cash for the notary and duty costs not covered by the Bëllegen Akt. Banks typically want your total debt service under ~40% of net income; expect to shop between Spuerkeess, BIL, BGL BNP Paribas and Raiffeisen (ING has wound down its Luxembourg mass-retail lending). Rate spreads between banks are real money over 25 years.

The buying process, step by step

  1. Mortgage pre-approval: strengthens any offer.
  2. Offer and compromis de vente: the preliminary contract, usually with a 10% deposit; it's binding, so review conditions (financing clause!) before signing.
  3. Notarial deed (acte de vente): typically 1–3 months after the compromis; ownership and keys transfer here.
  4. Registration: handled by the notary.

Buyer protections worth knowing

New-builds are sold under VEFA (off-plan) rules with staged payments and completion guarantees. For existing homes, the seller must provide the energy passport (CPE); there's no general cooling-off period once the compromis is signed, so take advice first, not after.