Buying a House or Property in Luxembourg

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Buying a House or Property in Luxembourg

There are no restrictions on foreigners wishing to buy property in Luxembourg.

The Buying Process

Most properties advertised for sale are through estate agents (agents immobiliers). Property agents must be approved by the Ministère des Classes Moyennes, pass an exam and have a professional card. Estate agents must also have a professional liability insurance. Some agents are members of the Chambre Immobilière du Grand-Duché de Luxembourg. Agent's fees are paid by the seller and advertised prices include commission, unless otherwise stated.    

It is rare to see private for sale signs on properties; private sales are often advertised in one of the three major daily or weekly newspapers:

• Luxembourg Wort (in German)
• Tageblatt (in French and German)
• Luxbazar (in French)

There are various websites advertising properties for sale or to rent in Luxembourg. The most popular are:

• Athome
• Immostar 
• Habiter 

Agent's fees are paid by the seller and advertised prices include commission, unless otherwise stated.

Property Purchase Process

The property purchase agreement (compromis de vente) is a legally binding contract and may be notarised. It is not mandatory, and is generally established to make sure neither the buyer nor seller withdraw from the sale. If the buyer and seller choose to sign a compromis, the following information should be included:

• Details and identities of the buyer and seller
• Full description of the property, with land registration number (registre cadastral) if possible
• The surface area of the property and land 
• The purchase price with a breakdown of fees and who pays each fee
• Details of the notary/notaries and sales agent
• Details of any fixtures and fittings included in the sale 
• Mortgage information including the date when the buyer should obtain their mortgage offer and the date of completion. A clause is usually added to cancel the transaction if no mortgage can be obtained.
• Any let out clauses (conditions/clauses suspensives) and the penalties incurred by the buyer or seller if completion doesn't take place

Deposit

On the day the compromis de vente is signed, the buyer may be required to pay a deposit, although this is not very common. If this is the case, the amount should be paid into an escrow account held by a notary of the buyer's choice. The deposit is refundable if one of the let out clauses of the contract are not met, most commonly, this would be mortgage approval.

Completion day

The purchase must be completed by a duly appointed Luxembourg notary. Any remaining amount on the price has to be paid beforehand to the notary escrow account. The notary transfers the purchase price to the seller and pays agent's commission on presentation of an invoice.

In general, if there are no problems and the buyer has been granted a mortgage, approximately four to eight weeks lapses between the signing of the compromis de vente and the completion date.

Financing a Property Purchase

Mortgages are available with most retail banks. To provide a mortgage, banks may require that the person pays in their salary or wage to a current account. A life insurance policy is usually required and made available by the lending bank, although any insurance company can be used if their is evidence that the lending bank is the beneficiary.

Experts and valuations

The mortgage company may require a survey of the value of the property by an expert valuer. The buyer must pay the fees for this and the expert must be approved by the financial company involved in the mortgage application.

This is not the same as the survey carried out under the British or American system and does not always alert the buyer to potential problems with the building. The value assessed is often the replacement value or forced sale value rather than the market value.

Notaries' Fees

A notary is required for all transactions. Notaries are qualified lawyers entitled by law to administer property transactions. Their fees are fixed by law (with the exception of ancillary out-of-pocket expenses) and these costs are paid for by the buyer. If more than one notary is involved (one for the seller, one for the buyer), the fees are shared between them. A notary can be freely chosen by both parties. 

Notaries fees are fixed by law and depend on the value of the purchase. Notary fees as understood in current transactions include the following: 

• Actual notary fees, as fixed by law
• Land transfer taxes paid by the notary on behalf of the buyer
• Miscellaneous fees (for example mortgage registration)
• To find a local Notary in Luxembourg: Click here and select "Trouver un Notaire"

Property taxes

Property taxes are based on a notional rental value (revenu cadastral) of the property and rates vary in each commune; they are low compared to neighbouring countries. It is recommended to obtain an indication from the seller, although the notional rental value can be reviewed at any time, usually once every ten years.

Rente Viagère

It is possible to buy occupied or non-occupied properties using the principle of the rente viagère. The buyer pays an initial upfront lump sum, le bouquet, to the seller, then a monthly allowance until the death of the owner. Prices are generally based on property value and mortality tables. It is recommended to get assistance from a notary and/or a lawyer.

Auction sales

Auction sales are frequent and usually due to repossession of a property. It is recommended to get assistance from a notary and/or a lawyer. Auction sales are listed in most national newspapers and at notaries offices.

Further Information

• See AngloINFO INFOrmation page on Selling a House or Property in Luxembourg

Content acknowledged as factual and correct by Mr Abby Toussaint,
Immobilière Toussaint, 23 Rue Nicolas Welter, L-7570 Mersch
December 2009

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