Luxembourg Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Luxembourg's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. Luxembourg’s system provides robust tenant protections—especially regarding eviction, deposits, and rent disputes—making it one of the more tenant-oriented frameworks in Europe.
Rents: Can landlord and tenant freely agree rents in Luxembourg?
Landlords and tenants in Luxembourg have considerable freedom to agree on the rent amount initially, but rent increases are subject to legal limits to protect tenants from unreasonable hikes. The system aims to balance market freedom with tenant protection.
Typically, rent can only be increased once per year, and any increase must be based on legal criteria, such as inflation or agreed-upon indices in the contract. Arbitrary or sudden rent hikes are generally not allowed.
Deposits
For leases signed from August 1, 2024, onward, the maximum deposit is now 2 months’ rent (excluding utilities). Landlords are legally required to return at least 50 % of the deposit within one month of key handover, with the remainder returned after receiving annual statements for charges or co-ownership costs
What rights do landlords and tenants have in Luxembourg, especially as to duration of contract, and eviction?
In Luxembourg, rental agreements typically last for two or three years, but it’s possible to negotiate a shorter lease period with your landlord or rental agency. Whatever the duration, it must be clearly stated in the rental contract. If you plan to move out when the lease ends, you need to notify your landlord at least three months in advance by sending a registered letter with a receipt confirmation, and ensure all rent payments are up to date. If neither you nor the landlord provides notice, the fixed-term lease will automatically renew and switch to a month-to-month arrangement (unless the contract says otherwise). Under this arrangement, you can end the lease at any time, provided you still give three months’ notice.
If you’re having problems with your landlord that affect your peaceful enjoyment of the property, it’s important to act promptly by sending a registered letter to your landlord outlining the issues. It’s crucial that you continue paying your rent during this time. Only a judge has the authority to order a rent reduction if the landlord is found to have violated the law.
If your dispute concerns the amount of rent or additional rental charges, you can bring your case before the Rent Committee. These committees, located within local municipal offices, act as mediation bodies. Their decisions are not legally binding unless both parties agree to them explicitly or implicitly. If you disagree with the Rent Committee’s ruling, you have the right to appeal to the Justice of Peace within one month. The specific court will depend on where the property is located.
Legislation
The Civil Code Arts 578-636 and 1708-1767.
How effective is the Luxembourgian legal system?
The legal system is generally fair and functional in handling landlord–tenant disputes, but its effectiveness depends on the specific issue and how quickly the parties seek resolution. It offers clear legal protections, structured procedures, and multiple dispute resolution avenues — but also involves some delays and practical limitations.
