Luxembourg: Guide to Buying Costs and Procedures
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Buying costs are moderate in Luxembourg
How high are realtors’ and lawyers’ fees in Luxembourg? What about other property purchase costs?
Transaction Costs |
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| Who Pays? | ||
| Registration tax | 6% - 10.20% | buyer |
| Notary fees | 0.7% - 1% | buyer |
| Transcript tax | 1% | buyer |
| Agent's commission | 3% + 15% VAT | seller |
| Costs paid by buyer | 7.70% - 12.20% | |
| Costs paid by seller | 3.45% | |
| ROUNDTRIP TRANSACTION COSTS | 11.15% - 15.65% | |
| See Footnotes Source: Global Property Guide |
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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.
Contracts 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 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 generally range between 0.5% to 1% of property value.
Agent's commission:
Real estate agent's commission is generally fixed at 3% (plus 15% VAT).
Luxembourg - more data and information
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