Property
Buying Property in Luxembourg as an Expat: 2026 Mortgage Guide
Marie Laurent
Senior Tax Consultant, IFA Luxembourg Member
14 min read
Disclaimer: For informational purposes only. Not financial, tax or legal advice. Verify with administration.public.lu and consult a qualified professional before making decisions.
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Luxembourg's property market is among the most expensive in Europe, with average prices in Luxembourg City exceeding €850,000.
Property Prices in 2026
- Luxembourg City: €850,000–€1.2M for apartments
- Esch-sur-Alzette: €550,000–€750,000
- Border regions: €400,000–€600,000
LTV Limits (BCL Macroprudential Rules)
| Property Type | Max LTV |
|---|---|
| Primary residence (existing) | 80% |
| Primary residence (new build) | 90% |
| Second home / investment | 80% |
| Buy-to-let | 60% |
Total Buying Costs (Budget 10–12% on top of purchase price)
- Registration tax: 6-7% of purchase price
- Notary fees: ~1–2%
- Transcription fee: 1%
- Agent commission: 3–5% (typically paid by seller)
- Mortgage setup fees: €500–€2,000
Tax Benefits for Homeowners
- Mortgage interest deduction: Up to €2,000/year per person
- Bëllegen Akt: Registration tax reduction for first-time buyers (up to €40,000)
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