Luxembourg – Selling Property

What steps are involved in selling your property privately in Luxembourg?

It is entirely possible to sell a Luxembourg property without engaging an estate agent. However, the legal framework governing the process is identical to that of an agent-assisted sale — the mandatory steps are set by law and apply regardless of how you choose to market the property. Below is a full walkthrough from preparation through to completion.

1. Obtain an Energy Performance Certificate (EPC / Passeport Énergétique). Every property transaction in Luxembourg requires the production of an Energy Performance Certificate before the property can legally be placed on the market. Sellers who have never obtained an energy passport for their property, or whose existing certificate is more than ten years old, must arrange for a new one before proceeding. A directory of authorised professionals can be found on guichet.public.lu.
2. Arrange a professional valuation and set a realistic asking price. Understanding the true market value of your property is an essential first step. Consulting a real estate professional for a formal appraisal, and reviewing the prices achieved by comparable properties in your area, will help you set a price that attracts genuine interest without leaving money on the table. Overpriced properties tend to sit unsold for longer, which can itself discourage buyers.
3. Assemble the necessary documentation. You will need your title deed as proof of ownership, the Energy Performance Certificate, any building permits relating to extensions or structural alterations, recent utility bills, and — if the property is an apartment — up-to-date co-ownership accounts and records of decisions taken at general assembly meetings. You should be prepared to answer detailed questions about the property’s history and running costs, and the original EPC must be presented when advertising the property and subsequently attached to the Acte de Vente for handover to the new owner.
4. Advertise the property and host viewings. Luxembourg property portals such as immotop.lu, athome.lu, and vivi.lu allow private sellers to list without agent involvement. Newspaper listings, social media, and expat-focused websites can also generate interest. Invest in good-quality photographs and write a thorough, accurate description. Schedule viewings at times that present the property to best advantage.
5. Agree terms and sign the compromis de vente (preliminary sale agreement). Once a buyer is identified and a price agreed, the parties enter into a preliminary sales agreement — the compromis de vente — which sets out the agreed price, the details of the property, the conditions of the sale, and a target date for completion. This document constitutes a legally binding commitment for both parties. If you are proceeding without an agent, a notary or lawyer can draft or review the agreement to ensure it protects your interests appropriately.
6. Appoint a notary. Luxembourg law requires that all property transfers be completed by a notary. Either side may nominate the notary, and both parties may share the same one or each appoint their own. The notary will carry out title and mortgage searches and prepare the final deed of sale.
7. Sign the Acte de Vente (final deed of sale). Once the compromis de vente has been signed and forwarded to the notary, preparation of the Acte de Vente — the deed that formally supersedes the preliminary agreement and underpins the update of the land register — begins. On the day of signing, all parties attend before the notary, the deed is executed, and the keys change hands. The notary then distributes the proceeds, fees, and any commission in accordance with the agreed terms.
8. Notify the tax authority of the transaction. Any sale or exchange of a property in Luxembourg must be declared to the Luxembourg Inland Revenue (Administration des Contributions Directes, ACD), irrespective of whether the transaction gives rise to a taxable gain. The ACD’s official portal is impotsdirects.public.lu.

Do most Luxembourg sellers use an estate agent, or is private selling common?

The large majority of properties listed in Luxembourg are marketed through licensed estate agents (agents immobiliers). Although private sales are legally permissible and the platforms through which sellers can list independently are readily accessible, most sellers in Luxembourg opt for professional agency representation. This preference reflects both the high property values involved and the complexity of the notarial process.

Sellers — particularly those new to Luxembourg — should exercise due care when selecting an agent. Estate agents in Luxembourg are required to hold specific qualifications and to be officially approved; in particular, they must possess a professional card and authorisation from the Direction Générale des Classes Moyennes (Ministry of Middle Classes, Tourism and Housing). Verifying an agent’s credentials before signing any mandate is strongly advisable.

If you engage an agent, you can choose between an exclusive mandate and a shared mandate. Under either arrangement the commission is ordinarily the same — typically 3% of the agreed sale price. An exclusive mandate ties you to a single agency, while a shared mandate allows you to instruct several agents simultaneously, with only the one who secures a buyer receiving payment.

Some sellers are tempted to instruct multiple agencies in the belief that competition will accelerate the sale. There is a practical downside, however: agents who are not confident of earning a commission may invest less effort in marketing your property. There is also a risk that buyers who see the same property advertised repeatedly — and across multiple agencies — may infer that the seller is under pressure to sell, potentially weakening your negotiating position.

For those who prefer to sell without an agent, portals such as immotop.lu, athome.lu, and vivi.lu are widely used and permit private listings across Luxembourg. Even so, a notary remains a legal requirement for completion, so at least one professional will always be involved in the transaction. This distinguishes Luxembourg from markets where solicitors alone handle conveyancing without any requirement for a notarial deed.

How does capital gains tax apply when selling property in Luxembourg?

Capital gains tax (CGT) on property in Luxembourg turns on two principal considerations: whether the property served as your primary residence, and the length of time you have owned it. The rules have been subject to several changes and temporary measures in recent years, so always confirm the current position with the Luxembourg Inland Revenue (ACD) before proceeding with a sale.

Primary residence exemption: A sale or exchange involving your main home is fully exempt from income tax, regardless of how long you have owned the property. For this exemption to apply, you must generally have been living in the property at the time of the sale, or the sale must take place by 31 December of the year following your move to a new main residence — provided you had occupied the property either immediately following its original purchase or construction, or for a minimum of five years before the sale. This represents a considerable advantage for owner-occupiers relative to the CGT treatment in many other European countries.

Investment properties and secondary homes: Where a property is sold fewer than five years after acquisition (as of 2025), any profit is characterised as a speculation profit and taxed at ordinary progressive rates, with a top marginal rate of up to 42%. Where the holding period exceeds five years, the profit is treated as a capital gain and benefits from more favourable rates. Note that the holding-period threshold was temporarily reduced to two years for sales completed between 1 January 2025 and 30 June 2025 — consult guichet.public.lu to check whether any transitional measures remain in force.

Long-term capital gains rate: Gains arising from sales between 1 January 2024 and 30 June 2025 attract a maximum tax rate of 10.5% (a quarter of the applicable overall rate). Gains realised outside that window are subject to a maximum of 21% (half the overall rate). The effective rate depends on your total taxable income for the year, given the interaction with progressive income tax bands.

The €50,000 exemption: A personal allowance of €50,000 (or €100,000 for spouses or partners taxed jointly) is available to reduce the taxable capital gain, subject to a ten-year rolling limit. Any exemptions already claimed in the preceding ten years reduce the allowance available. An additional allowance of €75,000 may apply to gains on inherited property that served as the parents’ main residence — each spouse may claim this additional allowance in respect of their own parents’ property, provided the inheritance was received in the direct line.

Inflation adjustment: For qualifying long-term gains, the original acquisition cost is uplifted by official inflation coefficients before calculating the taxable gain. This means only the real, inflation-adjusted increase in value is taxed — a meaningful benefit for properties held over many years, where a substantial portion of the nominal price rise may simply reflect general inflation.

Additional levies: In addition to income tax, proceeds from a property sale are generally also subject to contributions to the employment fund and to long-term care insurance, calculated by the ACD. A further insurance contribution of 1.4% also applies.

Non-residents: Both Luxembourg residents and non-residents selling property located in Luxembourg are subject to these rules. Non-residents who sell a Luxembourg property must declare the transaction to the ACD. It is also important to check whether your country of tax residence levies its own tax on the gain and whether a double taxation agreement (DTT) between that country and Luxembourg determines which state has primary taxing rights. Luxembourg has an extensive DTT network. Seek advice from a qualified tax professional for guidance tailored to your personal circumstances.

What other taxes and costs should sellers expect in Luxembourg?

In Luxembourg, the bulk of transaction taxes — including registration duties and standard notary fees — are typically borne by the buyer rather than the seller. That said, sellers do face a number of direct costs and should factor these into their financial planning.

Seller’s costs at a glance:

• Estate agent commission: Generally 3% of the agreed sale price (as of 2025), plus VAT at 17%. This is the principal direct cost for sellers who use an agent. The agreed fee should always be confirmed in writing before the mandate is signed.
• Energy Performance Certificate: Before legally marketing the property, you must commission an EPC from an approved assessor. The cost depends on the size and type of property — consult the list of approved professionals on guichet.public.lu.
• Legal and notarial fees on the seller’s side: Standard notary fees are paid by the buyer. However, if you instruct a separate notary or legal adviser to act solely in your interests — for example, to draft or review the compromis de vente — those fees are your responsibility.
• Capital gains tax: As detailed above, CGT may be due on investment and secondary properties. For the purposes of calculating the taxable gain, agent commission (including the applicable 17% VAT) is deductible, reducing the gain on which tax is charged.
• Mortgage discharge costs: If a mortgage is registered against the property, any costs associated with redeeming and formally discharging that charge before or at the point of completion will fall to the seller.

For context — buyer-side costs: Notary fees payable by the buyer amount to 7% of the purchase price (reduced to 3.5% until June 2025). These fees encompass registration duties, transcription charges, and the notary’s professional remuneration. Understanding the total cost burden on the buyer can help you price your property competitively. Current rates should always be verified with a licensed Luxembourg notary; a full list is available from the Board of Notaries (Chambre des Notaires).

Sellers should also bear in mind that annual property taxes (impôt foncier), levied at municipality level and based on the property’s value, category, and location, remain the seller’s liability up to the date of transfer. Any outstanding arrears must be cleared before completion can proceed.

What legal obligations must sellers fulfil in Luxembourg?

Luxembourg law imposes a number of clear obligations on sellers, whether they are marketing privately or through an agent. Non-compliance with these requirements can delay the transaction or render it invalid.

Energy Performance Certificate (mandatory): The passeport énergétique is a legal requirement before any property can be advertised for sale or rent. The original certificate must be attached to the Acte de Vente and passed to the incoming owner. In Luxembourg, the EPC is for informational purposes only — there is no legal obligation to carry out works to improve a property’s energy rating, whatever the outcome of the assessment. Poor ratings may nonetheless affect buyer interest and achievable price.

Disclosure of the property’s history: Sellers are expected to be forthcoming about the property’s building history and running costs, including any planning consents obtained for extensions, conversions, or structural modifications. Any such authorisations should be produced as part of the documentation package. Luxembourg law imposes a warranty against hidden defects (garantie des vices cachés) under the Civil Code, and a seller who deliberately conceals known faults may face legal claims after completion.

Notarial deed — compulsory for all transfers: A notarial deed is legally required for every property transfer in Luxembourg without exception. The preliminary sales agreement binds the parties contractually, but it is the notarial deed that formally vests ownership in the buyer and triggers the legal timelines governing guarantees, including those relating to hidden defects.

Land Registry registration: The sale must be registered with the Land Registry within three months of the buyer acquiring the property. In practice, the notary manages this registration on behalf of both parties as a routine part of the completion process.

Tax declaration: Every sale or exchange of a property in Luxembourg must be reported to the ACD, even where the transaction is wholly exempt from tax — for example, the sale of a principal residence. Non-resident sellers are equally required to make this declaration. The appropriate forms and guidance are available at impotsdirects.public.lu, or you can engage a tax adviser to file on your behalf.

No restrictions on foreign sellers: Foreign nationals may freely buy, sell, and let property in Luxembourg, and the same legal framework applies to all sellers irrespective of nationality or residence status. Non-residents must ensure they satisfy both their Luxembourg tax reporting obligations and any equivalent reporting duties in their country of residence.

How do exchange and completion work in a Luxembourg property sale?

Luxembourg’s property transfer system is rooted in the French civil law notarial tradition and will feel broadly familiar to anyone who has sold property in France, Belgium, or another civil law jurisdiction. It differs significantly from the common law systems used in the UK and Ireland, where solicitors handle conveyancing independently and a formal exchange of contracts constitutes a distinct legal milestone.

Step 1 — The compromis de vente (preliminary agreement): Although not strictly compulsory, a preliminary agreement is almost always drawn up to secure the transaction and provide both parties with protection should the other side seek to withdraw. The compromis records the agreed price, full property particulars, any conditions, and the target completion date. The buyer typically pays a deposit of around 10% of the purchase price at this stage.

Step 2 — Notarial searches: The notary acts as a guarantor of the transaction, conducting the searches necessary to verify the seller’s title, confirm that no mortgages or other encumbrances are outstanding, and identify any easements or lease agreements affecting the property. This due diligence is a fundamental element of the notary’s role and is essential to protecting both parties.

Step 3 — Preparation and signing of the Acte de Vente: Following the signing of the compromis, the notary begins research on the property and the parties involved. A gap of four to six weeks between the compromis and the final deed is typical, during which the notary completes the necessary enquiries and the buyer secures formal loan approval — processes that usually run in parallel.

Step 4 — Completion: The buyer must arrange to have the purchase funds available on the day of signing. With all parties present before the notary, the Acte de Vente is executed, the keys are handed over, and ownership passes immediately to the buyer. The notary then distributes the proceeds in accordance with the agreed terms, deducting fees, commission, and any outstanding balances. The notary subsequently registers the transaction with the Land Registry.

From a signed compromis through to completion, the total timeline is generally six to ten weeks, depending on the complexity of the searches and how swiftly the buyer’s financing is arranged. This is broadly in line with comparable timescales in France and Belgium, and tends to be shorter than in some European markets where administrative procedures can extend the process to several months.

Is direct property exchange or part-exchange available in Luxembourg?

Direct property exchange — whereby a seller transfers ownership of their property in return for another property rather than cash — is a legally recognised transaction type in Luxembourg. The fact that Luxembourg tax law consistently refers to “sale or exchange” of property confirms that this form of transaction is formally contemplated within the legal framework. The primary residence exemption, for instance, applies equally to exchanges as to outright sales, and any exchange of a building must be declared to the ACD regardless of whether a taxable gain results.

As with a standard sale, any direct exchange of real property in Luxembourg must be formalised through a notarial deed. The notary will ensure that both properties are properly valued, that title on each side is unencumbered, and that any balancing payment (soulte) — representing the difference in value between the two properties — is clearly documented and correctly transferred.

In practice, direct property exchanges are uncommon in the Luxembourg market. Given the relative liquidity and activity in the local property sector, most sellers find it more straightforward to sell conventionally and use the proceeds to purchase their next property. Part-exchange arrangements, which are offered as a standard product by some new-build developers in certain other countries, are not widely available as a marketed option in Luxembourg. Sellers exploring this route should seek specific advice from a Luxembourg notary or property lawyer, particularly regarding the tax treatment of any balancing payment and the procedural steps involved.

What do foreign sellers need to know about transferring sale proceeds out of Luxembourg?

Luxembourg is a fully integrated member of the European Union and the eurozone. There are no capital controls and no legal restrictions on transferring the proceeds of a property sale to a bank account abroad, whether within the EU or in a third country.

Settling tax obligations before transferring funds: Before moving money overseas, it is essential to ensure that all Luxembourg tax liabilities have been satisfied or formally assessed. Non-residents selling Luxembourg property must declare the transaction to the ACD, and it is prudent not to transfer the full proceeds until any capital gains tax due has been calculated and paid or otherwise accounted for. The ACD may request settlement of any outstanding tax before confirming that obligations have been met. The Luxembourg Inland Revenue or a local tax adviser can guide you through this process.

Double taxation agreements: Luxembourg operates an extensive network of double taxation treaties (DTTs). Under most of these agreements, gains arising from the sale of real estate situated in Luxembourg are taxable in Luxembourg. However, your country of residence may also seek to tax the same gain under its domestic rules, depending on how the applicable DTT allocates taxing rights over immovable property. You should check both the relevant DTT and your home country’s domestic tax law to understand your full exposure, and seek professional advice if the position is unclear.

Currency conversion and transfer costs: If you are converting the proceeds from euros into another currency, fluctuations in the exchange rate and the fees charged by financial institutions can have a material impact on the net amount you receive. High-street banks frequently offer less favourable exchange rates than specialist currency transfer services. It is worth obtaining quotes from several providers before committing to a large transfer. Luxembourg banks are subject to EU anti-money-laundering requirements, so the receiving bank will expect clear documentation of the source of funds — the notarial deed of sale will generally be sufficient evidence.

Reporting obligations in your home country: Many countries require their tax residents to report foreign property disposals and to account for any resulting gain under domestic tax rules. In addition to fulfilling your Luxembourg obligations, you should confirm your reporting duties with a tax adviser in your country of residence before completing the transfer.

Frequently asked questions: Selling property in Luxembourg

How long does the entire sale process typically take, from listing to completion?

The overall timeline depends on market conditions and how quickly a buyer can be found and financed, but sellers should generally budget for between two and six months from first listing to completion. Once a buyer is agreed and the compromis de vente is executed, the notary typically requires four to six weeks to complete the necessary searches and prepare the Acte de Vente, while the buyer arranges mortgage approval in parallel. The time on market before finding a buyer can add further weeks or months, depending on pricing and demand.

What happens if the buyer pulls out after the compromis de vente is signed?

The compromis de vente is a legally binding agreement that commits both parties until the transaction is formally concluded. If the buyer withdraws without a valid contractual justification, the seller is generally entitled to retain the deposit — typically 10% of the purchase price. Conversely, if the seller is the party who withdraws, they may be required to pay the buyer a sum equivalent to the deposit as compensation. The precise remedies available depend on the terms written into the compromis, which is why it is advisable to have this document reviewed by a notary or lawyer before signing.

Can I sell my Luxembourg property remotely, without being present in the country?

Yes. Foreign sellers who are unable to attend in person can grant a power of attorney to a Luxembourg lawyer or other authorised representative, enabling that person to sign both the compromis de vente and the Acte de Vente on their behalf. The power of attorney document will itself typically need to be notarised, and if it is executed abroad it may also require an apostille. You should confirm the exact formal requirements with your chosen Luxembourg notary well before the scheduled signing date.

Do I need to pay tax in Luxembourg if I am selling a property I have lived in as my main home?

The sale of a main residence is fully exempt from income tax in Luxembourg, regardless of how long you have owned the property. However, you are still required to declare the transaction to the Luxembourg Inland Revenue (ACD), even where no tax is payable. Filing the appropriate declaration is mandatory, and the online guidance tool on guichet.public.lu can help you establish whether your property qualifies as a main residence for this purpose.

Is there a rollover relief if I reinvest the proceeds in another property?

Luxembourg legislation provides a rollover relief from capital gains tax where the proceeds from the sale of a non-primary-residence property are reinvested in a specific qualifying property. The replacement property, which must be acquired by 2027, must either be designated for social rental purposes or achieve the highest (A+) energy performance classification, meeting prescribed standards for thermal insulation and environmental performance. This measure was introduced in 2024 and is subject to specific eligibility conditions. You should verify the current status of this relief — including any changes to deadlines or criteria — with the ACD or a qualified tax adviser.

Can a non-resident sell a Luxembourg property and receive the full sale proceeds?

Foreign nationals are free to sell property in Luxembourg, and there are no restrictions on transferring sale proceeds to an overseas account. However, any capital gains tax owed to the ACD must be declared and settled before the funds are moved. Non-residents should also investigate whether their country of residence imposes its own tax on the disposal and how any applicable double taxation treaty interacts with Luxembourg’s taxing rights. At completion, the notary will distribute the net proceeds after deducting all agreed fees and taxes.

Do I need a structural survey or other technical inspections before selling?

Luxembourg does not legally require sellers to commission a structural survey, asbestos report, or electrical safety certificate as a precondition of sale. The only mandatory pre-sale inspection requirement is the Energy Performance Certificate (Passeport Énergétique). This certificate is for information purposes only — irrespective of the energy rating it records, there is no legal requirement to undertake renovation works to improve performance before the property changes hands. Buyers may independently arrange their own surveys, and sellers are well advised to disclose any known defects voluntarily, as concealing material issues can give rise to claims under the hidden defects warranty after completion. Confirm current legal requirements with your notary.

What official sources should I consult when selling property in Luxembourg?

The principal official sources are: the Guichet.lu citizens’ portal for step-by-step procedural guidance; the Luxembourg Inland Revenue (ACD) for capital gains tax rules, declarations, and assessment; the Board of Notaries (Chambre des Notaires) for locating a licensed notary; and the Direction Générale des Classes Moyennes to verify that any agent you engage holds a current professional authorisation. For land registration and cadastral information, consult the Administration du Cadastre et de la Topographie.