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Compromis de vente, financing, registration duties and the Bëllegen Akt tax credit: a step-by-step guide to buying property in Luxembourg for the first time.
Buying a home in Luxembourg follows a well-marked path in which the notary plays a central role: they check the legal situation of the property, draw up the deed and collect the duties for the State. Here are the steps, from the search to the handover of the keys.
| Item | Order of magnitude |
|---|---|
| Registration and transcription duties | In principle 7% of the price (6% + 1%), reduced by the tax credit |
| 'Bëllegen Akt' tax credit | Allowance per buyer on the duties for the main residence; current amount on guichet.public.lu |
| Notary fees | Regulated tariff, decreasing with the price |
| Bank file fees and mortgage costs | Vary by bank |
| Housing VAT (new build) | Super-reduced rate possible under conditions for the main residence |
Good to know: for an off-plan purchase (VEFA), payment is made in instalments as the construction progresses and the contract must include statutory completion guarantees.
The State supports home ownership: a tax credit on registration duties, individual housing aids subject to income conditions, a climate loan for energy renovation, and affordable homes sold by the SNHBM and the Fonds du Logement (often on a long lease, at below-market prices, subject to eligibility). Before signing, check the energy performance certificate, the cadastre vertical for a flat, the co-ownership charges and any easements. If in doubt, the notary is your best neutral adviser.
Mortgage interest on the main residence is tax-deductible within certain limits, and home-savings schemes carry their own advantages. Have a tax simulation drawn up before buying: combined with the tax credit on registration duties, the interest deduction can significantly lighten the real cost of your loan in the first years.
