Why Luxembourg Welcomes International Buyers in 2025

‍Luxembourg imposes zero restrictions on property ownership for EU or non-EU citizens. Foreigners enjoy the same rights as locals, including freehold title and land purchase. This open policy, combined with economic stability and high appreciation potential, makes the Grand Duchy attractive for expats, investors, and relocating professionals. In 2025, international buyers represent a significant share of transactions, drawn by competitive mortgage rates and straightforward procedures.

Whether purchasing a primary residence, rental investment, or holiday home, the process is transparent and notary-regulated for security.

Detailed Step-by-Step Purchasing Process

1. Property Search — Use portals like atHome.lu, Immotop.lu, or work with licensed agents for off-market options.
2. Make an Offer — Negotiate and sign the compromis de vente (preliminary binding contract) with a 10% deposit.
3. Due Diligence Period — 7-10 days to arrange inspections, energy audits, and financing.
4. Notary Appointment — The notary verifies title, handles taxes, and drafts the final deed (acte authentique). Takes 2-4 months.
5. Completion and Registration — Pay balance, receive keys, and register with the Land Registry.

Non-residents can complete everything remotely via power of attorney.

All Costs and Taxes Explained (2025 Rates)Total acquisition costs typically 10-12% above purchase price:

• Registration duty: 6% + 1% transcription tax (7% total)
• Luxembourg City surtax: Additional 3% (if applicable)
• Notary fees: 1-1.5% (scaled)
• Agent commission: 3% + 17% VAT (often split or buyer-paid)
• Temporary incentives: Possible reductions for first-time or energy-efficient buys until mid-2025 extensions

No annual wealth tax on foreign-owned primary residences if used personally.

Financing Options for Non-ResidentsMajor banks (Spuerkeess, ING, BGL BNP Paribas) lend to foreigners:

• Up to 80-100% LTV for residents; 60-80% for non-residents
• Fixed rates around 3.5-4.1%
• Require proof of income, 20-40% deposit, and stable employment

Mortgage brokers help internationals secure pre-approvals quickly.

Essential Tips to Avoid Common Mistakes

• Always obtain an independent building survey for older properties
• Check co-ownership regulations in apartments
• Factor in energy performance — class A-B saves thousands long-term
• Use English-speaking professionals for smooth communication
• Plan for residency implications if staying over 183 days

Let The Place Guide You Through Every StepAs experienced agents for international clients, The Place handles everything from search to closing. Contact us today for your Luxembourg property journey.