Real estate acquisition in Luxembourg: house, flat, office.
Buying a house, flat or office in Luxembourg means understanding the steps, notary fees and registration duties, the main-residence relief, and the choice between direct or company ownership. Here are the essentials, and how we structure the acquisition.
Real estate acquisition in Luxembourg goes through a notarial sale deed, subject to registration and transcription duties. Depending on the objective (residence or investment) and the property type (house, flat, office), ownership can be direct or via a company, with distinct tax consequences.
Buying property in Luxembourg: the steps
The typical path: search and offer, preliminary sale agreement, bank financing, then the authentic sale deed signed before a notary. The notary checks title, clears any pre-emption rights and handles transcription and the registration of securities (mortgage).
We intervene on structuring and tax: buy directly or via a company? What tax on rents and resale? We also coordinate the notary and the bank.
Notary fees and registration duties
Acquiring a property is subject to registration and transcription duties (around 7% in total, subject to applicable rules and possible municipal surcharges in the city), plus the notary's regulated fees. The exact amount depends on the price, the property and the municipality.
For a precise budget, we estimate all costs before the offer, to avoid surprises at the deed.
Main residence: the relief ("Bëllegen Akt")
Buying a main residence may give rise to relief on registration and transcription duties (the "Bëllegen Akt" tax credit), subject to occupancy conditions. This benefit does not apply the same way to a rental investment or a professional property.
We check your eligibility and the real impact on your acquisition budget.
House, flat, office: what changes
For a residential house or flat, the stakes are the relief and financing. For a rental investment, it is the taxation of rents and capital gains. For an office or commercial premises, VAT (optional) and ownership structuring come into play.
The right set-up depends on your objective: use, yield, succession or portfolio.
Direct or company ownership?
Direct ownership (as an individual) is simple for a residence. For investment, especially jointly, in a portfolio or internationally, a company (Luxembourg property company, or a SOPARFI for participations) can ease management, financing, succession and optimisation, subject to substance.
We compare the scenarios (direct vs company) by your tax position, co-investors and horizon.
Taxation of real estate investment
Rental income is taxable; charges and depreciation may be deductible. The capital gain on resale follows a specific regime depending on the holding period and the structure. Company ownership opens other levers (depreciation, intragroup financing) but requires accounting and substance.
We quantify the most efficient option and handle its accounting and compliance.
Structure your acquisition
Frequently asked questions
The acquisition is subject to registration and transcription duties (around 7% in total, subject to applicable rules and municipal surcharges) plus the notary's regulated fees. The amount depends on the price, the property and the municipality.
It is a relief (tax credit) on registration and transcription duties for buying a main residence, subject to occupancy conditions. It does not apply the same way to a rental investment.
For a residence, direct ownership is often simplest. For investment (jointly, in a portfolio, internationally), a property company or a SOPARFI can ease management, financing and succession, subject to substance.
Yes. Professional real estate can be held via a company, with VAT (optional) and structuring questions. We frame the set-up and the accounting.
Structure your property purchase?
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