When buying property in Luxembourg, there are few transaction fees and taxes that you need to take into consideration. When you own property, you also need to pay an annual property tax.
Notary fees are generally 1.5% of the property purchase price.
The notary is usually chosen by mutual agreement between the buyer and seller, and the buyer typically takes care of the fees. If the seller insists on having a certain notary, you can get them to pay the fees.
The biggest transaction cost when buying property is the registration tax, also known as land transfer tax. This is 6% of the property purchase price, plus an extra 1% as transcript tax.
If your income does not exceed the tax-free allowance of €20,000 for an individual or €40,000 for a married couple, you do not need to pay registration/land transfer tax.
Real estate fees are usually 3% of the selling price plus 17% VAT. These costs are typically covered by the seller.
Homeowners have to pay an annual tax based on the value of their property. This is levied at 0.7% to 1% of the property’s assessed value.
If you decide to rent out your property, you will need to pay rental tax. The rates vary depending on your circumstances, e.g. if you are a resident or non-resident and if you own the property as an individual or with your spouse. Find out more here .