In this article
Step 1: Know your real budget
Start with the bank, not with the listings. A mortgage adviser can tell you how much you can borrow, on what terms, and how much of your own money you will need.
Your budget has three parts:
- the price of the property;
- the purchase costs: registration and transcription duties, notary fees and the costs of the mortgage deed;
- a reserve for moving, furnishing and the unexpected.
Registration and transcription duties together are 7% of the price in most of the country, reduced for many owner-occupiers by the Bëllegen Akt tax credit. Luxembourg City also applies a communal surcharge on registration duties, subject to exemptions. Our guide to registration duties and the Bëllegen Akt works through the figures. On the lending side, our mortgage guide explains how much banks usually finance.
Ask the bank for a written indication of what it is willing to lend before you make offers. It strengthens your position with sellers and prevents you from falling in love with a home you cannot finance.
Step 2: Choose where, then what
Luxembourg City's quarters differ more than their size suggests. Transport, schools, noise, parking and price per square metre vary from one street to the next. Our neighbourhood guides describe each quarter honestly, including the trade-offs.
Decide also between existing property and a new build. Buying off-plan (VEFA) follows its own rules on payments and guarantees, covered in our guide to buying off-plan.
Step 3: Viewings and due diligence
At viewings, look beyond the decoration. For an apartment in a co-ownership, ask for the minutes of recent general assemblies, the level of charges and the state of the works fund, which has been mandatory since 2023. Our guide to buying in a co-ownership lists the documents to request.
Ask for the energy performance certificate. It is required for any sale, and listings must show the energy class. A poor class may mean renovation costs ahead. See our guide to the energy passport.
For a house, consider a building survey by an architect or an engineer before committing.
Step 4: The offer
Offers in Luxembourg are usually made in writing, through the agent or directly to the seller. An offer can be conditional, and a well-drafted one states the price, the proposed timing and the condition that financing is obtained.
Be careful with the wording of any document you sign at this stage. A signed and accepted offer that contains the essential elements of a sale, the property and the price, can in some circumstances be treated as binding. When in doubt, make the offer subject to the signature of a compromis.
Step 5: The compromis de vente
This is the key step. According to Guichet.lu, a compromis signed by both parties is definitive: it commits them to complete the sale at the agreed price. In Luxembourg the principle is often summarised as compromis vaut vente.
The compromis normally includes:
- the identity of the parties and the property's cadastral references;
- the price and the payment terms;
- the choice of notary and the date by which the deed will be signed;
- conditions precedent (conditions suspensives), above all the buyer obtaining a loan within a set period, often four to six weeks;
- a penalty clause for the party that withdraws without a valid reason, commonly 10% of the price.
A deposit is often paid at this stage, usually held by the notary or the agency. Our guide to the compromis de vente looks at each clause in detail.
Step 6: Finalising the loan
With the compromis signed, you have a fixed timeframe to secure the loan. Send the bank everything it asks for promptly. If the loan is refused despite a genuine application, the financing condition allows you to withdraw without penalty, provided you can show you applied in good faith and on time.
Step 7: The notarial deed
A sale of real estate must be recorded in a notarial deed to be enforceable against third parties and registered at the mortgage office. The notary checks the title, the absence of charges on the property, and the planning situation, calculates and collects the duties, and registers the sale.
In Luxembourg, the buyer typically chooses the notary. The deed is usually signed a few weeks to a few months after the compromis, depending on the conditions and the bank. The notary's own fees are set by regulation; ask for an estimate of the total amount due at signing, which will include the duties and, if you borrow, the cost of the mortgage deed.
On the day, the price is paid through the notary, the deed is read and signed, and the keys are usually handed over.
Step 8: After the keys
- Register your new address with the commune within the legal deadline.
- Transfer or open utility contracts in your name, with meter readings on the day of handover.
- Insure the home. Your bank will usually require home insurance and often life insurance linked to the loan.
- Apply for any tax credit or aid that is not handled directly by the notary.
Where buyers go wrong
- Signing a compromis without a financing condition because the seller pushed for speed.
- Underestimating purchase costs, especially in Luxembourg City.
- Ignoring the co-ownership documents and discovering a large works programme after buying.
- Relying on the listing's surface area without checking it against the plans or a measured survey.
Our take
Buying in Luxembourg is legally safe and well organised. The risk lies in speed: a competitive market pushes buyers to sign a compromis before they have checked what they are committing to. Take a week longer before signing, not after.
If you are looking to buy, see our properties for sale, or tell us what you are looking for. If you are selling, our sales service explains how we work.
Sources
This article describes general rules and market practice in Luxembourg and is not legal, tax or financial advice. Rules and announced measures change; confirm the position that applies to you with a notary, your bank or a tax adviser before signing.
