Buying property in Luxembourg as a non-resident: costs, tax and steps

Buying property in Luxembourg as a non-resident is legally straightforward: as a general rule, the Grand Duchy places no restriction on foreign buyers, whether they live in a neighbouring country or outside Europe. The difficulty lies elsewhere: high transfer duties, tax relief reserved for owner-occupiers, stricter bank lending and a market heavily concentrated around the capital. This guide draws on the rules published by guichet.lu and on data from the Observatoire de l'Habitat and Statec.

Buying property in Luxembourg as a non-resident: three questions to settle first

• How will you use it? Main home (you are relocating), second home or buy-to-let: the answer changes the duties, the VAT rate on new builds and how much a bank will lend.
• What are you buying? An existing flat, an off-plan flat (known locally as VEFA) or a house: price per square metre and tax treatment differ.
• Whose name goes on the deed? Personal ownership, joint ownership or a company each affect duties, rental income tax and succession. Ask a Luxembourg notary and tax adviser to confirm the structure before signing anything.

For non-EU nationals, one point should be clear from the outset: owning property does not give a right of residence. Guichet.lu states that direct and indirect real estate investments are not taken into account for the investor residence permit. If relocation is part of your plan, our page on residency by investment in Europe sets out the alternatives.

Purchase costs: registration duty, transcription duty and the notary

Duties of around 7% of the price

According to guichet.lu, the standard rate of duties on a property purchase is 7%: 6% registration duty plus 1% transcription duty. The notary collects them on completion and pays them over to the registration authority (AED), which always charges a minimum of €100.

Guichet.lu also mentions a 3% municipal surcharge on certain buildings in the City of Luxembourg, in particular commercial or mixed-use property. If you are buying premises or a mixed-use building in the city, ask the notary for an exact calculation.

Notary's fees

Notary's fees are set by Grand-Ducal regulation, charged on a sliding scale of the price and subject to 17% VAT. On a high-value home they are well below the duties, but disbursements and, where a loan is involved, mortgage registration costs come on top. Ask the notary for an itemised statement.

The Bëllegen Akt: for owner-occupiers only

The tax credit on notarial deeds, known as the "Bëllegen Akt", reduces registration and transcription duties. Guichet.lu caps it at €40,000 per person, so a couple buying jointly can combine two credits. The ceiling has been raised on a temporary basis in recent years, so ask your notary to confirm the amount applicable on the date of your deed.

The conditions are strict:

• the buyer is an individual purchasing a home to live in personally;
• they must move in within 2 years of the deed (4 years for land or a property under construction) and live there for at least 2 years;
• second homes and properties bought to let are excluded;
• EEA nationals receive it on request at signing; non-EEA nationals must produce a Luxembourg residence certificate.

A non-resident buying to let, or buying a pied-à-terre, therefore pays the full duties.

3% VAT on new builds: who qualifies?

The price of a new home includes VAT. The super-reduced 3% rate applies to building or renovating a home that will be the owner's main residence, with the tax saving capped at €50,000 per dwelling, according to the official brochure of the registration authority. Since 2015, homes bought to let have been taxed at the standard 17% rate. The reduced rate is applied either directly on invoices after prior approval, or by refund.

For a non-resident investor, an off-plan flat therefore carries 17% VAT on the construction element. Bills have proposed reopening the reduced rate to some rental housing, so check the position when you buy.

Mortgages for non-residents

Luxembourg banks do lend to non-residents, but they look closely at income, its country of origin and its currency. Since 2021, CSSF Regulation 20-08 has capped loan-to-value ratios on residential mortgages: up to 100% for first-time buyers of a main home, 90% for other main homes and 80% for all other property, including buy-to-let. In practice, market guides report that non-residents are often asked for a larger deposit, in the region of 25% to 30%, and for additional guarantees.

Obtain a bank simulation before making an offer and prepare a complete file: tax returns, asset statements and proof of income.

Property prices by commune in 2025

The benchmark figures come from the Observatoire de l'Habitat, calculated with Statec from registered deeds (the "Le Logement en chiffres" publication, March 2026, covering transactions in 2025).

The sought-after neighbourhoods of the capital (Belair, Limpertsberg, Kirchberg, Ville-Haute) and the first ring of communes (Strassen, Bertrange) sit above these averages, and prices fall the further you move from the city. The Observatoire recorded a fall of around 11% for existing flats in Luxembourg City between 2022 and 2025, followed by stabilisation in late 2025. High-end new builds frequently exceed €12,000 per m².

Our Luxembourg property finder page describes the neighbourhoods and the prime homes we search for on behalf of clients.

Step by step: from offer to notarial deed

1. Define the brief: use, total budget including costs, timetable.
2. Secure financing: agreement in principle from a bank and an estimate of duties.
3. Search and view: listed and confidential properties, review of the building's accounts and the energy performance certificate.
4. Negotiate and sign the preliminary contract (compromis de vente): in Luxembourg it binds both parties on signature. It usually includes a condition precedent for obtaining the mortgage, with a set deadline, and often a penalty clause (commonly around 10% of the price in contractual practice). Courts apply these deadlines strictly: a bank refusal must be notified within the agreed period.
5. Satisfy the conditions: loan offer and the notary's checks.
6. Sign the notarial deed: the notary collects the duties and applies the Bëllegen Akt where relevant. The transfer is then recorded at the land registry (Publicité Foncière).

A typical buyer's agent assignment follows the same steps, with shortlisting upstream and negotiation conducted solely for the buyer. Our fees start from 2% of the purchase price (VAT included); our article on property finder fees explains how they are calculated.

Letting and tax: the essentials for non-residents

• Rental income: a non-resident letting a Luxembourg property is taxed there on the rent at progressive rates, subject to the tax treaty with their country of residence. Expenses, mortgage interest and depreciation may be deductible under conditions.
• Rent cap: the residential lease law limits annual rent to a percentage of the capital invested (5% under the current rule). In 2026 the government opened a review of this mechanism.
• Yields: Global Property Guide puts average gross rental yields at roughly 3% to 3.5% nationally and around 3% in Luxembourg City, before costs and tax.
• Property tax: currently modest, although a reform is being prepared.
• Resale: capital gains are taxed differently depending on whether the property was held for less or more than two years; a main home is exempt under conditions.

To compare these figures with Paris, the Riviera and Greece, read our analysis of where to invest in luxury real estate in Europe in 2026. If you are also considering offices in Luxembourg, our page on prime residential and office investment explains our approach.

A first conversation in Luxembourg

Acropolis Real Estate meets clients by appointment at 54 rue Charles Darwin, L-1433 Luxembourg. Our founder, Nicolas Milonas, is based there and has worked on cross-border investment for more than 25 years. Tell us about your project through our contact form and we will come back to you with an initial assessment.