CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Mar 20, 2014

Buying costs are moderate in Luxembourg


How high are realtors’ and lawyers’ fees in Luxembourg? What about other property purchase costs?

Transaction Costs

Who Pays?
Registration tax 6% - 10.20% buyer
Notary fees 1.5% buyer
Real Estate Agent’s Fee 3% (+ 17% VAT) seller
Transcript tax 1.2% buyer
Costs paid by buyer 8.70% - 12.9%
Costs paid by seller 3.57%
ROUNDTRIP TRANSACTION COSTS 12.21% - 16.41%
See Footnotes
Source: Global Property Guide

How difficult is the property purchase process in Luxembourg?

Foreigners can freely buy property in Luxembourg.

The first step to purchasing property in Luxembourg is to make an offer. Once the seller has accepted, a sales agreement is drawn up to make the terms of the transaction binding to both parties.

Luxembourg traditional stone cottageContracts do not need to be in written form; oral contracts are acceptable. However, real estate transfers need to be registered in order to be legally enforceable and to protect the property from third parties. Since only certified deeds will be registered, the sale must be recorded in a notarial deed. The notary public bears the responsibility of presenting the deed at the mortgage registry. You will then be liable to pay registration taxes and other necessary government duties.



Footnotes to Transaction Costs Table


The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Registration tax:
Registration tax is levied at 6%, with an additional 1% transcript tax. If a resale clause is added to the deed, registration tax will go up to 7.2%, however, up to 5% can be recovered if resale is registered within four years. An additional 3% surtax is paid for Luxembourg City.

Notary Fees:
Notary fees are generally 1.5% of the property value.

Agent´s commission:
Real estate agent´s commission is generally fixed at 3% (plus 17% VAT).






Comments


Be the first to comment on this article!



Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Luxembourg





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions