Investment property: Luxembourg

Updated 6 October 2026

A foreigner can buy a flat, house or plot in Luxembourg without permits or nationality restrictions.

The market is one of the most expensive in Europe, especially in and around the capital, with demand driven by people working in finance and European institutions. A notary handles the deal, and title is registered at the mortgage office. Buying a home does not grant residence: relocation is via work, business, study or family; see our Luxembourg residence page. Dollar amounts use the European Central Bank rate of 5 October 2026, $1.12 per euro.

How much it costs to complete

• Registration duty of 6% and transcription duty of 1%, together 7% of the price. On an €800,000 flat, about $896,400, that is €56,000, about $62,800.
• New build from a developer. The 7% applies only to the land share, while construction is subject to VAT. For a home the buyer will live in, the rate is 3% instead of 17%, with the benefit capped at €50,000, about $56,100, per property.
• Notary: statutory scale.

The tax credit for your own home

If you buy a home to live in, the 7% duty is reduced by a tax credit. In 2026 it is up to €40,000, about $44,900, per buyer, so up to €80,000 for a couple. The notary calculates the duty, deducts the credit and remits the balance. In return the buyer must move in within the set period and live there for at least two years, or the credit must be repaid.

Owner's taxes

• Land tax is paid yearly to the commune and is small compared with the price.
• Rental income is subject to progressive income tax, for non-residents too, after expenses and depreciation.
• Sale. A gain on a sale within two years is fully taxed as speculative; after two years at a reduced rate. Selling your main home where you lived is exempt.

How the purchase works

1. Shortlisting and a preliminary contract, usually with a deposit.
2. Financing: Luxembourg banks lend, including to people working in the country and living in neighbouring countries.
3. Notarial deed and payment of duty net of the tax credit.
4. Registration at the mortgage office.

Buyer's documents

• passport and proof of marital status, which decides how spouses' ownership is recorded;
• proof of the origin of funds for the notary and bank;
• for the tax credit, a declaration of intent to live in the home and documents on any previous home.

Risks

• The tax credit must be repaid if you do not move in on time or sell too early.
• Buying off-plan without checking the developer's schedule and guarantees.
• Selling within two years: tax as speculative income.

What we do

We shortlist a property, calculate duties, the tax credit and VAT, check the developer or seller, and support the preliminary contract, notarial deed and registration with locally licensed partners. If you need residence or a Luxembourg bank account, we help in parallel.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

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