I f you want to buy a flat in Luxembourg, you should start by assessing the market and get a fair idea of what the asking prices are in the area in which you are interested. Compare prices of flats using wortimmo.lu, or do your market research on a certain property and area going to Observatoire de l’Habitat.
You can search for a flat through a professional estate agent
or you can look for yourself on real estate websites:
Renovate an old apartment
Getting an apartment in an older building or a flat that needs renovation might be cheaper than a new build. However, renovations costs can be high, as you will probably need to change everything from electrics to the gas installation. Renovation costs can run as high as €500/m2. Find out if you qualify for a grant for house renovation Guichet.lu.
New build
You can build your own home or a developer can do it for you if you obtain all the necessary authorizations and the required infrastructure is laid out ( road, water pipes, street lights). You might qualify for a governmental subsidy to help you build your new home, particularly if you intend to build a sustainable house. Learn more about this at Guichet.lu.
Apply for social housing
If you don’t own already property in Luxembourg, you might qualify for social housing. Learn if you are eligible and how to apply on Ville de Luxembourg. Find a list of social housing projects at SNHBM (Société Nationale des Habitations à Bon Marché)..
Signing the sale agreement
After you make an offer on a property, you will need to sign the sale agreement (compromis de vente). This document binds you to buy the property subject to mortgage approval.
Getting a mortgage
If you earn a regular income in Luxembourg, you will probably qualify for a mortgage loan. Do your research and make inquiries about the terms of the loans with at least two banks.
Tax benefits
When you buy your first personal flat you can qualify for a tax credit, which will help you to pay for the registration fees (6-7% of the price). This tax credit can go up to €20,000 per person, and up to €40,000 for a couple. Find more about how to apply for tax credit on Guichet.lu.
Notary
All the paperwork will be handled by a notary, who will make the necessary inquiries on behalf of the vendor and the buyer and who will prepare the documentation. You will sign the contract before this notary, who will also witness the agreement to move out, where the date when the vendor will move out is stated.
Once the sale went through, prepare to settle in and sort out details concerning utilities, the municipality, and the post. Inform your gas and electricity provider about the change of ownership and send them the meter readings. Notify the internet provider about the ownership change or make an appointment with another company if you want to switch providers. Pay the fee to the Postal service which will ensure your mail is redirected and change the name on the post box. Change the contract for the collection of bins to your name.
Finally, register the new house to your name with the municipality (the commune) as soon as you move in.
Find out more about the process of buying a house on Guichet.lu.
