Selling a property in Luxembourg: steps, documents and advice

To sell a property in Luxembourg, start by estimating its value and gathering the necessary documents. Next, draw up a comprehensive listing and arrange viewings. Finally, once you have considered the offers, you can sign the preliminary sale agreement and then finalise the transaction before a notary.

What are the steps involved in selling a property in Luxembourg?

A property sale generally involves eight stages: pricing, preparing the documents, staging the property, advertising the property, viewings, negotiation, the preliminary sale agreement and the notarised deed.

Here is the route you should expect:

1. Estimate the value of the property.
2. Gather the necessary documents.
3. Prepare the property and the advert.
4. Decide whether to sell on your own or through an estate agent.
5. Organise the visits.
6. Review the bids received.
7. Sign the preliminary sale agreement.
8. Finalise the sale at the solicitor’s office.

1. How can you estimate the selling price of your property?

The sale price must reflect the property’s location, floor area, condition, energy efficiency, fittings and fixtures, and recent sales in the area.

Firstly, compare your property with similar properties. For flats, the Observatoire de l’Habitat publishes an official map of sale prices by municipality, based on notarised deeds. However, this data is only a guide and is no substitute for an individual valuation.

You can also use the’atHome property valuation tool to get an initial price range. A valuation carried out by a professional then allows for the specific characteristics of the property and its surroundings to be taken into account.

Why is a realistic price important?

A realistic asking price makes it easier to connect with buyers whose budget genuinely matches the property.

On the other hand, setting the price too high may prolong the sale and lead to more negotiations. Conversely, setting the price too low risks unnecessarily reducing the amount you receive.

2. What documents do you need to prepare before selling?

Before putting the property on the market, gather together the documents needed to identify the property, describe its condition and ensure the transaction is carried out securely.

Depending on the accommodation, the application may include, amongst other things:

• your title deed; ;
• an extract or a cadastral map; ;
• the energy performance certificate; ;
• the available plans; ;
• any authorisation relating to the processing operations carried out; ;
• invoices and guarantees for recent work; ;
• a breakdown of the equipment included in the sale.

Furthermore, the sale of a flat requires additional information about the owners’ association: rules and regulations, service charges, works that have been approved or are planned, available minutes of meetings, and the status of the maintenance fund.

Is an energy performance certificate required when selling a property?

Yes. A valid energy performance certificate is required when an existing property changes hands, subject to any exceptions provided for in the regulations.

In practice, the CPE is valid for ten years. Prospective buyers must be able to view it, and the original must be handed over to the new owner. Furthermore, the property advertisement must state the energy and thermal insulation ratings.

3. Should you carry out any renovation work before selling?

Renovations aren’t always necessary to sell a property, but it must be clean, well-maintained and presented honestly.

Start with simple changes that immediately improve the first impression:

• repair any minor visible defects; ;
• replace faulty bulbs; ;
• clean surfaces and windows; ;
• declutter the rooms; ;
• tidying up the outdoor areas; ;
• Air the room out before visitors arrive.

However, a major renovation is only worthwhile if its cost can actually be recouped through an increase in the property’s value. Before you start, get a valuation of the property both with and without the renovation work.

How should you prepare your home for photos and viewings?

First of all, clear the rooms to show off the space to its best advantage. Then open the curtains and aim for a bright, tidy presentation.

At the same time, prepare clear answers regarding the work carried out and any known defects. It is better to explain a situation than to try to conceal it.

4. Is it better to sell on your own or through an estate agent?

Both options are possible. On the one hand, selling directly allows you to retain control over every stage of the process. On the other hand, an estate agent can take care of much of the paperwork and communication with buyers.

The choice therefore depends on the time you have available, your knowledge of the market and the level of support you are looking for.

What do you need to sort out when you’re selling on your own?

By selling directly, you are responsible for:

• the price estimate; ;
• the creation and distribution of the advert; ;
• enquiries; ;
• organising visits; ;
• negotiation; ;
• the preparation of documents; ;
• coordination with the solicitor.

In return, you retain control of the process, but you must be available and comfortable with administrative procedures. To increase your visibility, you can list your property on atHome and manage enquiries directly.

What services does an estate agent provide?

An estate agent can assist you with valuing the property, presenting it to potential buyers, advertising it, shortlisting enquiries, arranging viewings, negotiating and preparing for the sale.

Before signing an agency agreement, check its duration, whether it is exclusive or non-exclusive, the services included and the amount of the commission. In Luxembourg, an estate agent must hold a licence to practise.

Guichet.lu states that a commission which generally corresponds to 3 % of the sale price, plus VAT, is borne by the party that commissioned the agency, usually the seller. However, the applicable amount must be checked in the agreement signed with the agency.

You can also ask to be assisted by an agency from atHome.

5. How do you write an effective property advert?

A good property advert immediately provides the information needed to understand the property and decide whether to arrange a viewing.

First of all, make it clear that:

• the local authority and the neighbourhood; ;
• the type of property; ;
• the living space; ;
• the number of bedrooms; ;
• outdoor spaces; ;
• the appendices included; ;
• the floor and whether there is a lift; ;
• the main equipment; ;
• the condition of the property; ;
• energy performance certificate categories; ;
• the asking price.

Use clear, well-lit photos that show each room in a logical order. Avoid vague descriptions and superlatives. The property’s specific features will help the buyer to visualise themselves living there.

6. How can you make the most of viewings and assess the properties on offer?

A successful viewing enables the buyer to check the details in the advert and get specific answers about the property.

To do this, please prepare the following information:

• the work already carried out; ;
• energy consumption; ;
• service charges; ;
• the equipment included; ;
• the works planned for the building; ;
• the availability of the property; ;
• any known easements or special features.

After the viewing, an offer may relate to the price, the preferred date for handing over the keys, or certain terms of the sale. However, don’t focus solely on the amount offered: also take into account the timetable and the progress of the buyer’s financing.

Finally, a verbal offer does not provide the same clarity as a written proposal. Ask for the key points to be set out clearly before proceeding.

7. What should you check before signing the preliminary sale agreement?

The preliminary agreement must identify the parties, describe the property in detail, set the price and specify the terms of the transaction.

In Luxembourg, a preliminary agreement signed by the seller and the buyer is a fully-fledged contract. It takes legal effect immediately. Consequently, the parties cannot, in principle, simply change their minds after signing.

The document may, for example, specify:

• the property’s cadastral details; ;
• the price and payment terms; ;
• the date scheduled for the notarised deed; ;
• the date on which the keys are handed over; ;
• the items included in the sale; ;
• any easements; ;
• conditions precedent; ;
• the consequences of failing to comply with the agreement.

Furthermore, a condition precedent relating to the granting of a loan is usually included where the buyer needs to finance the purchase. If in any doubt, have the preliminary sale agreement checked by a solicitor before signing.

Official source: Guichet.lu – content and legal validity of the preliminary sale agreement.

8. What is the notary’s role in the sale?

The notary draws up the authentic deed, checks the legal status of the property and completes the formalities required for the transfer of ownership.

As a first step, the notary verifies, in particular, the identity of the parties, the seller’s rights and whether there are any mortgages, easements or other encumbrances. The notarised deed and its registration make the transfer of ownership enforceable against third parties.

The seller and the buyer may choose the notary to handle the transaction. Where no joint decision has been made, the notary is generally chosen by the party bearing the notary’s fees, which is usually the buyer.

9. What fees and taxes should the seller expect to pay?

The seller must take into account the costs incurred in preparing for and completing the transaction, as well as any capital gains tax that may be payable.

Depending on the project, the budget may include:

• the issue or renewal of the CPE; ;
• minor repairs and preparing the property; ;
• photographs or other presentation services; ;
• publication costs; ;
• the agency’s commission; ;
• any costs associated with the release of a mortgage; ;
• any capital gains tax on the property.

Before setting your net budget, ask your solicitor or the Direct Taxation Authority for an estimate.

Is capital gain on property taxable?

The sale of a main residence may be exempt from income tax provided that the conditions laid down by the Direct Taxation Authority are met. The sale must, however, be declared.

For another property:

In any case, the rules depend on the taxpayer’s circumstances, the use of the property and the date of the transaction. You should therefore consult the official page on declaring a property sale and seek advice from the Direct Taxation Authority or your solicitor.

What mistakes should you avoid when selling a property?

The most common mistakes are linked to an inaccurate estimate, an incomplete application or a commitment signed too hastily.

To ensure your sale goes smoothly:

• do not set the price solely on the basis of the amount you need; ;
• check that the energy performance certificate is valid before publishing; ;
• get the documents ready without waiting for the first offer; ;
• clearly state any known defects and work required; ;
• assess the buyer’s financing; ;
• Do not sign a preliminary agreement that you do not understand; ;
• Take tax into account before calculating the net proceeds of the sale.

Checklist for selling your property in Luxembourg

Preparing to put the property on the market:

• ✔ have the property valued; ;
• ✔ choose between a private sale and an estate agent; ;
• ✔ check the CPE; ;
• ✔ gather the documents; ;
• ✔ prepare the accommodation; ;
• ✔ take the photos; ;
• ✔ Write a comprehensive advert.

Assessing an offer before accepting it

• ✔ check the price and the terms on offer; ;
• ✔ request information on the progress of the funding; ;
• ✔ agree on the timetable; ;
• ✔ forward the file to the solicitor; ;
• ✔ Read through the preliminary agreement carefully.

Preparing for the signing of the notarised deed:

• ✔ confirm that the conditions precedent have been satisfied; ;
• ✔ agree on a date for handing over the keys; ;
• ✔ prepare meter readings; ;
• ✔ organise the move; ;
• ✔ Plan ahead for the tax return relating to the sale.

How does atHome support you with your sale?

atHome helps you prepare and promote your sales campaign all within a single ecosystem.

You can:

• Get a free valuation of your property on atHomeFinance; ;
• post your property advert ;
• find an agency to support you.

This means you can choose the option that best suits your availability and the level of support you require.

FAQ on selling property in Luxembourg

Is it possible to sell a property without an estate agent in Luxembourg?

Yes. An owner can sell a property they own directly. In this case, they must take care of the valuation, the advertisement, liaising with potential buyers, viewings, negotiations and preparing the paperwork. However, it is still necessary to use a solicitor to draw up the deed of sale and make the transfer of ownership enforceable against third parties.

Who pays the estate agent’s commission?

The commission is paid by the party that commissioned the agency, usually the seller. In practice, Guichet.lu states that the commission is generally 3 % of the sale price, plus VAT. However, the actual amount, the services included and the terms of payment must be specified in the mandate signed with the agency.

Can you withdraw from a sale agreement after signing it?

In principle, no. A preliminary agreement signed by the seller and the buyer is binding once the property and the price have been agreed. However, the sale may be subject to conditions precedent set out in the document, in particular the buyer securing financing. Consequently, a party that withdraws without valid grounds may face the consequences set out in the preliminary agreement.

Does the seller have to declare the sale of their main residence?

Yes. The sale of a property must be declared to the Direct Taxation Authority, even where the capital gain on the main residence is exempt. However, this exemption depends, amongst other things, on the conditions under which the property was occupied and the date of the sale following any move.

Official sources

• Guichet.lu – Energy Performance Certificate
• Guichet.lu – Preliminary sales agreement
• Guichet.lu – Cadastral extract
• Guichet.lu – Declaration of the sale of a property
• Direct Taxation Authority – Sale of the main residence
• Housing Observatory – Sale prices by local authority
• Chamber of Notaries – Notarial deeds