Luxembourg – Buying Property

Can foreign nationals legally buy and own property in Luxembourg?

Luxembourg’s real estate market is entirely accessible to overseas buyers, with no distinction made on the basis of nationality or residency status. International purchasers enjoy identical legal rights to those of EU citizens when acquiring property. This stands in notable contrast to markets such as Switzerland, where the Lex Koller legislation restricts non-resident foreign acquisitions, or New Zealand, which requires non-citizens to seek official consent before purchasing existing homes.

Ownership in Luxembourg is full freehold, meaning the property can be held indefinitely with complete control vested in the owner. There are no quotas to observe, no approval procedures aimed specifically at non-EU buyers, and no minimum purchase price or investment threshold that must be met.

European and non-European nationals alike may acquire real estate or land in Luxembourg under identical conditions to those applicable to local residents. No governmental authorisation or special requirement is needed to proceed with a purchase, and it is not even necessary to hold Luxembourg residency in order to buy. The transaction can be completed from abroad.

Because Luxembourg is a landlocked nation, it has no coastal zones subject to ownership restrictions, and similarly imposes no limitations on purchases near its land borders. There is also no ceiling on the number of properties a single individual may own in the country.

It is important to note, however, that holding property in Luxembourg confers no automatic entitlement to live or work there. Those intending to relocate must satisfy the country’s immigration requirements separately. The primary official resource for property-related administrative matters is Guichet.lu, maintained by the Luxembourg government.

What are average property prices in Luxembourg, and how do they vary by region?

As of February 2026, the national average asking price for residential properties listed for sale in Luxembourg stood at €8,225 per square metre, a rise of 0.56% against the same month in 2025. This headline figure conceals considerable variation between the capital and more rural parts of the country. For the most up-to-date figures, buyers should consult reputable listing portals such as Immotop.lu or atHome.lu, as market conditions can shift from one quarter to the next.

Within Luxembourg City, average prices for existing apartments were running at around €10,200 per square metre in early 2026, with new-build units reaching approximately €12,150 per square metre. Premium districts such as Belair, Limpertsberg, and Ville-Haute routinely exceed €13,000 per square metre for well-presented apartments. At city level, the average apartment price sits around €940,000, while houses typically surpass €2.3 million, making apartments the more achievable entry point for most buyers.

Across 2025, the per-square-metre average in the capital was approximately €11,800, while suburban zones ranged between €5,800 and €7,500 per square metre. For context, Germany’s average condominium price of €3,423 per square metre is less than half Luxembourg’s national average, illustrating the scale of the premium commanded by this small but wealthy market.

In the fourth quarter of 2024, an energy class G property averaged €7,334 per square metre compared with €9,270 for an energy class A home — a gap of €1,936 per square metre. This premium attached to energy performance is growing in significance and must be factored into any purchase budget. Buyers should always request and review the energy performance certificate (certificat de performance énergétique) before committing to an acquisition.

Where are the most popular locations to buy property in Luxembourg?

Luxembourg City remains the dominant focus for international buyers and investors, underpinned by its concentration of financial institutions, EU bodies, and well-paid employment. The capital’s cosmopolitan character, quality international schools, and well-developed infrastructure mean that demand from overseas professionals consistently runs ahead of available supply in central districts.

Within the city, Belair, Limpertsberg, and Ville-Haute attract the highest per-square-metre prices, prized for their leafy streets, period buildings, and easy access to embassies and international schools. Kirchberg, which hosts the European Court of Justice and several EU agencies, is in high demand among professionals attached to those institutions. Two-bedroom apartments near employment hubs like Kirchberg, or with strong tram connectivity, offer reliable rental demand and broad appeal at resale.

Beyond the capital, Esch-sur-Alzette — the country’s second-largest city — has drawn increasing buyer interest from those priced out of Luxembourg City. Its designation as European Capital of Culture in 2022 triggered substantial regeneration investment, shifting perceptions of the area considerably.

Border areas adjacent to Belgium, France, and Germany have also gained popularity on the strength of relatively lower prices and improving transport links. Towns such as Differdange and Dudelange, as well as communities along the Moselle valley to the east, appeal to buyers seeking a quieter lifestyle without sacrificing practical access to the capital.

Are there any emerging or up-and-coming areas worth considering in Luxembourg?

Within Luxembourg City, Gasperich and the Cloche d’Or district are recording the fastest price growth, driven by large-scale regeneration in the southern part of the city. The construction of a major commercial and business hub in Cloche d’Or has transformed this formerly peripheral zone into one of the capital’s most dynamic neighbourhoods, offering newer stock with solid long-term appreciation prospects.

The significant price differentials found across Luxembourg’s territory reflect underlying differences in economic activity, job density, and distance from the capital. The Nordstad — a grouping of towns including Ettelbruck and Diekirch in the north — is attracting growing interest from buyers who want more space for considerably less money than the capital commands. The west and centre of the country also remain active, while the east has experienced a pronounced slowdown in both sales and rental activity.

For buyers prepared to look beyond Luxembourg City and its immediate commuter belt, the western suburbs and expanding motorway-accessible zones offer a combination of relative affordability and good connectivity. Ongoing extensions to the city’s tram network continue to open up areas that previously struggled to attract demand.

What are the current trends in the property market in Luxembourg?

After a notably subdued 2023, the market began to recover in 2024. The fourth quarter saw a strong acceleration in that recovery, with residential transactions reaching 7,431 sales — an increase of 48% compared to 2023. Transaction volumes, while rebounding impressively, remain below the peak levels recorded before 2022. Buyers seeking the most current statistical picture should consult STATEC, the official national statistics body, which publishes quarterly housing data.

House prices in Luxembourg recorded a modest increase of 1.4% on an annual basis at the end of 2024 — the first positive movement in two years. This trend is anticipated to continue through 2025, with gradual stabilisation and incremental price growth. The picture is not uniform across the market: existing house prices climbed by 3.0%, while apartments rose 1.8%. Off-plan apartments (VEFA), however, continued to soften, declining 2.4% in the fourth quarter of 2024.

Energy performance has become a decisive factor in purchasing decisions. Properties rated A to C can achieve up to €1,400 per square metre more than equivalents rated F to G, as Luxembourg progressively tightens its building energy regulations. New-build apartments in Luxembourg City grew around 8% in 2025 while existing apartments stayed broadly flat, widening the gap between the two segments of the market.

Despite the rebound in buyer activity, residential construction output continues to contract. Approved building permits covered just 4,025 new dwellings in 2024, a year-on-year fall of 8.6%, following declines of 6% in 2023 and 23.4% in 2022. This structural constraint on supply is a fundamental characteristic of the Luxembourg market and a key reason why prices are expected to hold up over the medium to long term.

Rents have risen sharply even as sale prices underwent correction. Average rent reached €29.7 per square metre in the first quarter of 2025, representing growth of 2.8% over the quarter and 9.6% year-on-year. Rising rents reflect affordability pressures on first-time buyers and the steady influx of international workers. For investment buyers, this rental trajectory is supportive of buy-to-let returns, though rental regulations should be reviewed carefully before committing.

Is buying property in Luxembourg a good investment?

As one of the wealthiest nations in the world, Luxembourg benefits from a resilient economy anchored by a strong financial sector and a growing technology industry, both of which sustain robust demand for housing. Political stability, an exceptionally high standard of living, and first-rate infrastructure make the country consistently attractive to expatriates and skilled professionals, ensuring a steady population of residents and keeping the rental market competitive. The country’s constrained land supply acts as a structural support to property values and enhances the potential for long-term capital appreciation.

Looking ahead from early 2026, well-positioned apartments in Luxembourg City are considered by market analysts to offer the best overall return over a five-year horizon, combining likely appreciation with strong rental demand and good resale liquidity. Indicative projections suggest a five-year total return — encompassing both price growth and rental income — of roughly 25% to 35% for quality apartments in sought-after districts, though actual net returns will depend significantly on the purchase price and financing costs. These figures represent analyst estimates and should be treated as indicative rather than guaranteed outcomes.

In February 2026, the average asking rent for residential properties stood at €30.72 per square metre per month, representing a 7.23% increase compared with February 2025. The depth and continuity of rental demand, driven by a large and constantly renewing base of international professionals, underpins buy-to-let performance. That said, Luxembourg’s high entry prices relative to comparable European markets mean gross rental yields tend to be moderate — typically 3–4% — rather than exceptional.

Buyers whose income or savings are denominated in currencies other than the euro face exchange-rate exposure both at the point of purchase and throughout the ownership period. Using a specialist currency transfer service and exploring hedging options is strongly advisable. As with any property investment, historical performance provides no guarantee of future results, and independent financial advice from a suitably qualified professional is essential before proceeding.

What types of property are commonly available to buy in Luxembourg?

Foreign buyers in Luxembourg can purchase the same range of residential property types as local residents, including apartments, houses, duplexes, penthouses, and off-plan new builds acquired through the VEFA mechanism. VEFA (Vente en l’État Futur d’Achèvement) is the standard legal framework for buying a property prior to or during construction in Luxembourg — broadly analogous to a stage-payment off-plan contract in Australia or a new-build reservation in the UK.

Apartments form the dominant property type across Luxembourg City and other urban centres, spanning compact studios through to expansive penthouses. The country accommodates a broad range of real estate options, from city-centre apartments to rural countryside homes. In peri-urban zones and smaller towns, semi-detached and terraced houses (maisons en bande) are widespread and generally offer more living space per euro than central-city apartments.

Detached family homes (maisons individuelles) and villas are found in the suburbs and rural areas, with prime-location detached properties frequently exceeding €1.5 million. Renovation projects, rural properties, and agricultural land are available in the Ardennes region to the north and in the Our and Moselle valleys. Buyers considering agricultural land should consult the relevant communal authority regarding planning and land-use designations, as change-of-use restrictions may apply.

What is the typical step-by-step process for buying property in Luxembourg?

In Luxembourg, notaries are central to all property transactions: they are responsible for ensuring the legality of every transfer and for protecting both parties against fraud or error. No property purchase can be completed without notarial involvement. Unlike common-law conveyancing systems, where a solicitor acts exclusively for one party, the Luxembourg notary is a state-appointed official who oversees the entire transaction for both buyer and seller and guarantees its legal integrity.

1. Search and make an offer. Begin your search through registered estate agents (agents immobiliers) or online property platforms. Agents must hold a professional card and be authorised by the Ministry of Middle Classes, Tourism and Housing (Direction Générale des Classes Moyennes) in order to operate legally. Once you have identified a suitable property, submit an offer — typically via the agent — and negotiate the purchase price.
2. Obtain financing approval. If a mortgage is required, approach Luxembourg banks or your existing bank at an early stage. Luxembourg lenders typically cap lending to foreign non-residents at 70–80% of the property value, so you should plan for a down payment of 20–30% in addition to closing costs before beginning your search. Obtain a formal agreement in principle before progressing to contract.
3. Gather essential documents. Assemble the key documentation, including the energy performance certificate (CPE), the co-ownership regulations if the property forms part of a multi-unit building, proof of identity, and evidence of funds. The cadastral extract from the Administration du Cadastre et de la Topographie (ACT) is the essential document confirming parcel boundaries, registered ownership, and any encumbrances prior to purchase.
4. Choose a notary and sign the preliminary contract (compromis de vente). Buyer and seller sign a preliminary agreement in the presence of the notary, setting out the agreed purchase price, completion date, and the financial consequences of either party failing to proceed. A deposit — most commonly 10% of the purchase price — is transferred to a dedicated notary client account at this stage.
5. Notary due diligence period. The transaction pauses for approximately six to eight weeks while the notary carries out thorough checks on the documentation provided by both parties. The verification of encumbrances and registered liens is the most critical element of this process, shielding the buyer from unknowingly inheriting prior debts or discovering undisclosed restrictions after completion.
6. Sign the notarial deed of sale (acte authentique). Both parties attend the notary’s office to execute the final deed of sale. All additional fees payable to the notary are settled by the buyer at this point; the seller has no liability for notary costs.
7. Pay all taxes and fees at completion. The standard applicable tax rate for real estate purchases is 7%, comprising 6% in registration duties and 1% in transcription fees. The Bëllegen Akt tax credit — fixed permanently at €40,000 per buyer (€80,000 per couple) from 1 July 2025 — is available to those establishing their primary residence in the property. Always confirm current rates and relief thresholds with your notary or through Guichet.lu.
8. Property registration. Every real estate transaction is registered by the state notary. The buyer is required to transfer the purchase funds to the seller within 15 days of registration. Upon confirmation of payment, legal ownership passes to the buyer and is recorded in the Luxembourg land registry (Conservation des Hypothèques).

Buyers should note that purchases within Luxembourg City attract an additional municipal surcharge: the standard 7% proportional registration duty is supplemented by a 3% city surtax on properties situated within the capital’s boundaries. This additional cost must be included in your budget when purchasing in Luxembourg City. Always verify all applicable rates and charges with your notary, as these can be subject to change.

Do I need a lawyer to buy property in Luxembourg, and how do I find a reputable one?

Retaining a separate lawyer (avocat) is not a legal requirement in Luxembourg — the notary undertakes the principal legal checks and oversees the documentation required to complete the transaction. Nevertheless, for foreign buyers unfamiliar with the local legal framework, particularly in complex transactions, purchases via a corporate structure, or where substantial sums are at stake, instructing an independent property lawyer alongside the notary is strongly advisable.

The core legal checks in Luxembourg — title searches, lien verification, and standard extracts — are covered within the notary’s workflow and disbursements. Engaging an independent lawyer for additional scrutiny typically costs between €800 and €2,500, depending on the scope of the work. An independent lawyer can review the preliminary contract in your interest, provide tax structuring advice, conduct due diligence on planning consents, and represent you if any dispute arises — functions the notary, who acts for both parties, cannot perform in the same way.

All Luxembourg lawyers must be enrolled with the Luxembourg Bar Association (Ordre des Avocats du Barreau de Luxembourg). A directory of qualified property lawyers can be searched through the association’s official website at www.barreau.lu. Contact details are: Ordre des Avocats du Barreau de Luxembourg, B.P. 361, L-2013 Luxembourg; Tel: +352 46 72 72 1. A separate bar serves the Diekirch district — the Ordre des Avocats du Barreau de Diekirch — accessible through the same national website.

Foreign buyers often face practical challenges including language barriers, as contracts and legal documents are typically drafted in French and may require professional translation, and unfamiliarity with Luxembourg’s civil law system, which operates very differently from common-law frameworks. Seeking a lawyer who is fluent in your preferred language and has a demonstrable track record in real estate transactions is therefore highly recommended.

What are the most common pitfalls and problems expats encounter when buying property in Luxembourg?

Unverified or unlicensed agents. Buyers are advised to exercise caution when dealing with estate agents and agencies. Agents are required to hold a professional card and be formally authorised by the Ministry of Middle Classes, Tourism and Housing before they may legally carry out agency work. Always verify an agent’s credentials and authorisation status before entering into any arrangement.

Hidden debts or charges on the property. The notary’s encumbrance and lien verification is the most critical safeguard in the buying process, protecting the purchaser from inadvertently assuming the seller’s registered debts or uncovering restrictions only after the sale has completed. Do not allow impatience to shorten this stage. Ask your notary to provide explicit written confirmation that the property is clear of all registered mortgages, charges, and easements before proceeding.

Risks specific to off-plan (VEFA) purchases. Buying a property before it is built exposes the purchaser to the risk of developer insolvency, construction delays, or deviations from the agreed specification. When purchasing off-plan, buyers must also pay attention to VAT: a primary-residence buyer benefits from a reduced VAT rate of 3% on the portion of the property yet to be constructed at the time of purchase. An investor intending to rent out the property, however, will not qualify for this relief and will be charged 17% VAT on the entire outstanding construction value. Independent legal advice is essential before signing any VEFA agreement.

Currency transfer risks. If your purchase funds are held in a currency other than the euro, exchange-rate movements between the date of price agreement and the completion date can materially alter the effective cost of the property in your home currency. Engage a specialist foreign exchange provider, consider fixing your rate through a forward contract, and do not leave this exposure unmanaged.

Planning and building permission issues. Verify with the relevant commune whether any alterations, extensions, or outbuildings present on the property were constructed with proper planning consent. Unauthorised works can give rise to legal complications and financial liability when the time comes to sell. Your notary or lawyer can obtain a certificat d’urbanisme to clarify the zoning status and any outstanding planning issues affecting the property.

Short-term rental compliance. Short-term tourist rentals in Luxembourg are now subject to traveller accommodation data rules introduced in late 2025, which add a layer of administrative compliance for Airbnb-style operations. If you plan to use your property as holiday accommodation, check the current rules on Guichet.lu and confirm that the co-ownership regulations for your building permit such use.

Language and legal system unfamiliarity. Property contracts in Luxembourg are conventionally drawn up in French and are governed by civil law, which is fundamentally different from the common-law systems used in countries such as the UK or Australia. Never sign any document you have not fully understood. Engage a bilingual lawyer and ensure every key clause is translated and explained before you commit.

Can I buy property in Luxembourg through a company, and is it worth doing?

Purchasing property through a company is entirely possible in Luxembourg and can offer advantages including asset protection and tax planning opportunities. The transaction is typically structured via a Luxembourg legal entity, most commonly a Société à Responsabilité Limitée (SARL) or a Société Anonyme (SA). A SARL is broadly equivalent to a private limited company in many other jurisdictions, while an SA is closer to a public limited company and is far less commonly used for residential real estate.

Where property is held through a company rather than by an individual, the same 7% duty framework applies at acquisition. However, the corporate structure alters how rental income and capital gains are taxed, and VAT considerations can become more involved. Corporate ownership may offer advantages in the context of inheritance planning, portfolio management, and limiting personal exposure, but it also means the property cannot benefit directly from personal tax reliefs such as the Bëllegen Akt credit. Additionally, the company will carry ongoing accounting, audit, and regulatory compliance obligations and costs.

Luxembourg is internationally recognised as a suitable jurisdiction for holding structures, and lawyers and tax advisers with specialist experience in real estate vehicles are readily available. However, the rules governing corporate property ownership, beneficial ownership registers, and substance requirements have been substantially revised in recent years. Independent legal and tax advice from a suitably qualified professional is indispensable before proceeding with a company acquisition structure. Do not rely on general information when making this decision.

What taxes and ongoing costs should I budget for when owning property in Luxembourg?

Registration and transcription duties (at purchase): The standard rate applicable to real estate purchases is 7%, made up of 6% in registration duties and 1% in transcription fees. An additional 3% city surtax applies to properties located within Luxembourg City. This is the Luxembourg equivalent of stamp duty or transfer tax in other systems and is settled at completion.

Notary fees: Notary costs encompass registration duties generally ranging from 1% to 7% depending on the nature of the property, VAT at 17% charged on the notary’s professional services, and the notary’s own fee, which is typically 1% to 1.5% of the property value. The professional fee element is fixed by Grand Ducal decree, giving buyers a degree of certainty over this cost component.

Bëllegen Akt tax credit: The Bëllegen Akt tax credit was made permanent from 1 July 2025 at €40,000 per individual buyer (€80,000 for a couple purchasing jointly), providing meaningful relief for those establishing their primary residence. To qualify, the buyer must intend to occupy the property as their principal home within 24 months of purchase, maintain that occupation for at least 24 months, and must not rent out the whole or any part of the property during that period. Confirm current eligibility criteria with your notary or via Guichet.lu.

Annual property tax (impôt foncier): Property tax is levied annually and varies by commune. Although Luxembourg’s property taxes are comparatively modest by European standards, they remain a recurring ownership cost that should be taken into account in long-term financial planning. Each commune determines its own property tax rates, so the liability can vary substantially from one municipality to another. Your local commune office or the Administration des Contributions Directes can provide current rates.

Rental income tax: Rental income from a Luxembourg property is subject to Luxembourg income tax, levied at the relevant personal or corporate rate. Allowable deductions include mortgage interest, depreciation charges, maintenance expenditure, and management fees. Non-residents are taxed on their Luxembourg-source rental income under Luxembourg rates. The tax authority’s website at impotsdirects.public.lu provides up-to-date guidance.

VAT on new-build purchases: Buyers acquiring an off-plan property for occupation as their primary residence benefit from a reduced VAT rate of 3% on the portion of the property yet to be built at the time of signing. This concession is capped at a tax benefit of €50,000; beyond this ceiling, the standard rate of 17% applies to the remaining construction value.

Agent’s commission: Estate agent fees in Luxembourg are typically around 3% of the property’s sale price. As a general principle, it is the seller who engages the agent and bears the commission, given that it was the seller who sought professional assistance to market the property. Always confirm the fee arrangement for any specific transaction before proceeding.

The total transaction cost for purchasing an existing home in Luxembourg in 2026 is broadly estimated at around 8.5% of the purchase price, with a typical range of approximately 7.5% to 10% depending on the specifics of the deal. The lower end of that range applies to straightforward cash purchases, while the higher end is more representative of mortgage-financed transactions involving additional registration steps. Always seek confirmation of all applicable figures from your notary and tax adviser, as rates and thresholds are subject to change.

What are the official sources I should consult when buying property in Luxembourg?

• Guichet.lu (Official Luxembourg Government Portal) — the principal reference point for all administrative and legal guidance on property purchase, taxation, and residency matters: guichet.public.lu
• Administration du Cadastre et de la Topographie (ACT) — the land registry and cadastral authority, handling parcel boundary information, ownership verification, and property registration: act.gouvernement.lu
• Administration de l’Enregistrement, des Domaines et de la TVA (AED) — the Registration Duties, Estates and VAT Authority, responsible for collecting registration and transcription duties: aed.public.lu
• Administration des Contributions Directes — the direct taxation authority covering income tax, rental income tax, and property-related fiscal matters: impotsdirects.public.lu
• Chambre des Notaires du Grand-Duché de Luxembourg — the official chamber of notaries, through which registered notaries for property transactions can be located: notariat.lu; Address: 53, boulevard Joseph II, L-1840 Luxembourg; Tel: +352 44 70 21
• Ordre des Avocats du Barreau de Luxembourg — the Bar Association, for identifying and verifying qualified property lawyers: barreau.lu
• Observatoire de l’Habitat — the Housing Observatory, which publishes quarterly and annual reports covering property prices, transaction volumes, and broader market developments: observatoire.liser.lu
• STATEC (Institut national de la statistique et des études économiques) — Luxembourg’s national statistics institute, producing official housing statistics and economic data: statistiques.public.lu

Frequently asked questions about buying property in Luxembourg

Do I need to be a resident of Luxembourg to buy property there?

Residency in Luxembourg is not a prerequisite for purchasing property in the country. Buyers from any part of the world may complete a transaction without holding a Luxembourg address. It is equally important to understand that acquiring property confers no right to reside in the country; immigration status and property ownership are governed by entirely separate legal frameworks.

Can I get a mortgage in Luxembourg as a foreign national?

Yes, foreign nationals can apply for mortgage financing through Luxembourg banks. Lenders will assess applicants on the basis of income, employment stability, and ability to service the debt, and may require additional guarantees from non-residents. Luxembourg banks typically lend foreign non-resident buyers between 70% and 80% of the property’s value, so prospective purchasers should have a down payment of 20–30% plus completion costs available before beginning their property search.

How long does the property buying process take in Luxembourg?

Following signature of the preliminary contract, proceedings pause for roughly six to eight weeks while the notary carries out due diligence — a standard and entirely expected part of the process. Taking into account the initial search, price negotiation, financing arrangements, and final registration, buyers should plan for a total timeline of two to four months from agreeing terms to being recorded as the legal owner.

Are there any special taxes for foreigners buying property in Luxembourg?

No additional transfer taxes are levied on foreign buyers in Luxembourg. The standard 7% duties apply uniformly, regardless of the purchaser’s nationality or country of residence. Property registration tax and notary fees are the same for foreign buyers as they are for Luxembourg residents, with no nationality-based distinction.

What is the Bëllegen Akt and can I benefit from it?

The Bëllegen Akt is a tax credit designed to reduce the registration duty burden for buyers purchasing their primary residence. With effect from 1 July 2025, it was made permanent at €40,000 per individual buyer and €80,000 for a couple purchasing jointly. To be eligible, the buyer must occupy the property as their principal residence within two years of purchase and maintain that occupation for at least two years thereafter. Full eligibility criteria are available on Guichet.lu.

Is a notary mandatory when buying property in Luxembourg?

Yes — all property sales in Luxembourg are required by law to be notarised. The notary is a state-appointed official through whose office every valid real estate transaction must pass. A Grand Ducal regulation prescribes the scale of notary fees for completing a transaction. Unlike in common-law countries where solicitors handle conveyancing on behalf of individual clients, the Luxembourg notary acts for both parties and ensures the legal integrity of the entire process. No valid purchase can be completed without notarial involvement.

What happens if I want to rent out my property short-term in Luxembourg?

Short-term tourist lets in Luxembourg are now governed by traveller accommodation data rules that came into force in late 2025, introducing additional reporting obligations for Airbnb-style operations. Before listing any property on a short-term rental platform, check the current regulatory requirements on Guichet.lu and review your building’s co-ownership regulations to confirm that such use is permitted.

What is the difference between buying an existing property and buying off-plan (VEFA) in Luxembourg?

Buying an existing property offers greater certainty — what you see is what you get — while off-plan (VEFA) purchases typically deliver a newer, more energy-efficient home but carry risks related to developer solvency, build-programme delays, and potential changes to the final specification. The two segments also diverge significantly in their VAT treatment: a buyer purchasing off-plan as their primary residence qualifies for a reduced VAT rate of 3% on the portion of the property still to be constructed, whereas an investor intending to rent the property out will be liable for the full 17% VAT rate on all outstanding construction value. Market data from late 2024 showed existing house prices rising 3.0% and existing apartments up 1.8%, while off-plan apartment prices fell 2.4% over the same period. Independent legal advice should always be obtained before signing any VEFA agreement.