How to buy a property in Luxembourg: the process, costs and notary

Buying a home in Luxembourg is a regulated, notary-led process. Whether you are a resident or not, the steps and the costs are largely the same. This guide walks through the journey from financing to the keys, and explains the duties and fees that come on top of the purchase price. For where prices stand today, see our separate guide to the Luxembourg property market.

Step 1: Get a mortgage pre-approval

Most buyers start at the bank. A pre-approval (accord de principe) tells you how much you can borrow and signals to sellers that your offer is serious. Luxembourg banks typically lend up to 80% of the property value, so you need a personal contribution of around 20%, plus the purchase costs in cash. First-time buyers acquiring their main home can sometimes finance up to 100% with a strong profile, while non-residents are often capped at 70-80%.

• Banks generally keep total monthly debt payments under about 40% of net household income.
• Gather payslips, tax statements and proof of your contribution before house-hunting.
• Compare fixed and variable rates and the loan term across several lenders.

Step 2: Make an offer and sign the compromis de vente

Once your offer is accepted, both sides usually sign a compromis de vente (preliminary sales agreement). Under Luxembourg law this private contract is final and binding as soon as it is signed: "a sales agreement constitutes a sale." A deposit of about 10% of the price is commonly paid at this stage. Buyers often insert a suspensive condition making the sale conditional on obtaining the mortgage, so they can withdraw without losing the deposit if financing falls through. Read every clause carefully before signing.

Step 3: The notary and the acte notarié

Transferring ownership of real estate requires a notary (notaire), who has exclusive authority to draw up the final deed. The notary is a neutral public officer who checks the title, searches for mortgages and charges on the property, prepares the acte notarié (authentic deed of sale), collects the taxes, and registers the transfer at the Mortgage Registry so it is enforceable against third parties.

• Roughly 4 to 6 weeks typically pass between the compromis and the signing of the deed; the full process often runs 2 to 3 months.
• The buyer pays the duties and the notary's bill on the day the deed is signed.

Step 4: The costs on top of the price

The biggest extra cost is the transfer taxes. The standard rate on a house, apartment or building plot is 7%: a 6% registration duty plus a 1% transcription duty, both calculated on the purchase price. Additional communal charges can apply in some cases. On top of that, the notary's professional fee is roughly 1%. As a rule of thumb, budget around 7-8% of the price for taxes and fees combined.

Step 5: The Bëllegen Akt and the 3% VAT

Two reliefs soften the bill. The Bëllegen Akt tax credit lets each buyer of a main residence offset up to EUR 40,000 of registration and transcription duties (so EUR 80,000 for a couple buying together). Made permanent by the law of 3 July 2025 for deeds signed from 1 July 2025, it is deducted directly from the notary's bill, though the AED still collects a minimum of EUR 100. You must occupy the home for at least two years. Our dedicated explainer covers the conditions in full.

If you are building or substantially renovating your main home, a super-reduced 3% VAT rate applies to the works instead of the standard 17%, capped at EUR 50,000 per dwelling. See our VAT-on-housing guide for details.

Foreign buyers: Luxembourg places no restriction on who may buy. EU and non-EU nationals, residents and non-residents have the same rights as Luxembourg citizens to purchase property.

Last reviewed: June 2026. Figures and rules are based on official sources and may change; confirm current amounts with Guichet.lu, the Chambre des Notaires and the AED before you sign.