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Buying

The procedure for purchasing property in Luxembourg is not difficult (the difficulty is in actually finding the properties for sale) and it could be considered as a typical European method.

As stated it can be difficult to find property for sale in the first instance, this is because the country is so small and as such there are few properties on sale at any one time and also because "for sale" boards are not commonly used in the country. Therefore, the best options open to you would be to scour local newspapers or to employ the services of an estate agent.

Once you or your agent have found a property and you have agreed a price, you will be expected to pay a 25% deposit and you will enter into a sales agreement which is legally binding between the buyer and seller.

Upon execution of the final contract, the notary will record the sale and enter the deeds into the register. The buyer will then pay the remainder of the sale price.

There is a 6% property transfer tax and an additional 1% must be allocated for a transcription tax. Annual property taxes are high, up to 8% of the purchase price of the property. It is worth noting, however, that there is an exemption to the sales tax provision called the Act de Bonne Marché, which was put in place to help first time buyers enter the housing market. In order to qualify for this you would need to prove that the property was your first in Luxembourg, your salary must be under a pre-defined government limit and the property itself fulfils the Act de Bonne Marché criteria. Most of the property contracts are prepared by a lawyer, so it would be worth asking their advice if they could check to see whether your property purchase would qualify under the Act de Bonne Marché.

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