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Luxembourg – Property Taxes

  • Property tax in Luxembourg is known as “taxe foncière” and is based on the value of the property.
  • The tax rate varies depending on the commune (municipality) in which the property is located, with rates generally ranging from 0.30% to 1.20% of the property’s value.

Capital Gains Tax (CGT)

  • CGT is imposed on the sale of property in Luxembourg, and the rate is 20%.
  • CGT is calculated on the difference between the acquisition price and the selling price, after deducting the expenses related to the sale.
  • If the property was held for more than six years, the rate of CGT is reduced to 12.5%.

Inheritance Tax

  • Inheritance tax in Luxembourg is based on the value of the property and the relationship between the deceased and the heir.
  • The tax rate can vary from 0% to 40%, depending on the circumstances.

Gift Tax

  • Gift tax in Luxembourg is based on the value of the property and the relationship between the giver and the receiver.
  • The tax rate can vary from 0% to 40%, depending on the circumstances.

Tax on Property Income

  • Income earned from renting out property in Luxembourg is subject to income tax.
  • The tax rate can vary depending on the type of property and the income earned.

Tax Advantages

  • There are tax advantages for certain types of property purchases in Luxembourg, such as for first-time buyers or for properties used for professional activities.
  • Additionally, properties in certain designated areas may also be eligible for tax incentives.
  • Furthermore, Luxembourg has a system of tax allowances which can be used to reduce the overall amount of taxes due on a property.


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