Real Estate Law Luxembourg
Complete real estate legal services in Luxembourg. Property acquisitions, commercial leasing, development projects, and investment structuring.
In summary: Luxembourg has no restrictions on foreign property ownership. Transaction costs: ~7-10% (including 6% registration duty for existing buildings). Commercial leases typically 3-6-9 years. Real estate investment structures include SOPARFIs and specialized funds.
Real Estate in Luxembourg
Luxembourg's real estate market is one of Europe's most dynamic, driven by the country's economic growth and international character. Whether you're investing, developing, or leasing, understanding the legal framework is essential.
Property Acquisitions
Acquisition Process
| Stage | Details |
|---|---|
| 1. Offer/Negotiation | Non-binding discussions and price negotiation |
| 2. Compromis de vente | Binding preliminary agreement, 10% deposit |
| 3. Due diligence | Legal, technical, and financial investigations |
| 4. Financing | Bank loan approval if applicable |
| 5. Notarial deed | Final sale before notary, title transfer |
| 6. Registration | Land registry inscription |
Transaction Costs
| Cost | Rate |
|---|---|
| Registration duty (existing buildings) | 6% |
| Registration duty (new buildings/land) | 3% (under conditions) |
| Transcription duty | 0.05% |
| Notary fees | ~1% (degressive scale) |
| Bëllegen Akt (first-time buyers) | Reduced rate possible |
Commercial Leasing
Key Terms
- Duration: Typically 3-6-9 years with break options
- Rent: Usually indexed to cost of living
- Security deposit: Commonly 3-6 months' rent
- Charges: Triple net leases common for commercial property
- Fit-out: Tenant often responsible for interior works
- Assignment/Subletting: Subject to landlord consent
Lease Review Points
- Rent escalation mechanism
- Maintenance and repair obligations
- Break clause conditions
- Reinstatement requirements
- Insurance obligations
- Environmental responsibilities
Real Estate Investment Structures
Direct Investment
- Individual or corporate ownership
- Full control over property
- Subject to Luxembourg real estate taxation
- Capital gains potentially taxable
SOPARFI Structure
- Tax-efficient holding for real estate
- Participation exemption on subsidiaries
- Access to treaty network
- Flexible exit options
Real Estate Funds
- RAIF: Fast setup, no CSSF approval
- SIF: Regulated, institutional investors
- SCS/SCSp: Limited partnership structures
Development Projects
Planning and Permits
- PAG (Plan d'Aménagement Général) - zoning plan
- PAP (Plan d'Aménagement Particulier) - development plan
- Building permits (autorisation de construire)
- Environmental authorizations if applicable
Our Services
- Property acquisitions and sales
- Due diligence investigations
- Commercial lease negotiation
- Investment structuring
- Development project support
- Real estate fund formation
- Dispute resolution
Frequently Asked Questions
Yes, there are no restrictions on foreign ownership of real estate in Luxembourg. Both EU and non-EU citizens can purchase residential and commercial property without special authorization.
Transaction costs include: registration duty (6% for existing buildings, 3% for new buildings under certain conditions), notary fees (~1%), and transcription fees (0.05%). Total costs typically range from 7-10% of the purchase price.
The compromis de vente is a preliminary sales agreement binding both parties. It typically includes a 10% deposit and conditions precedent (financing, surveys). It is usually followed by the notarial deed (acte authentique) within 2-3 months.
Commercial leases in Luxembourg are generally free-form, with terms negotiated between parties. Standard leases are 3-6-9 years with rent review clauses. The tenant often pays for fitting-out works while the landlord maintains the building structure.
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