Becoming a homeowner, the point before taking the plunge

When it comes to buying a property in Luxembourg, the investment is high but very favourable. What's more, Luxembourg offers a wide range of tax incentives to help you get through the process! Joao Varandas of AXA Varandas & Associates guides you through the process:

The Luxembourg property market is booming

The Grand Duchy has a population of 600,000 and attracts many expatriates at a rate of 12,000 new residents each year.
The property market is growing and so are the prices per square metre.
However, this increase does not intimidate buyers. As proof, the Observatoire de l'habitat website shows +12% of transactions recorded for the purchase of old flats in Luxembourg.

A very favourable tax system

Luxembourg has put in place interesting tax measures for purchasers.
A tax deduction (or tax credit) can be granted to you when you buy your house or flat (limited to €20,000). A significant advantage that encourages buyers to take the plunge.

Other reasons for choosing this type of property are the lower transaction costs, lower property taxes, tax-free capital gains on resale, and a tax credit for notarised deeds and mortgage insurance. Finally, the interest on mortgage loans is tax deductible.

AXA Varandas & Associés agency will be able to assist you in setting up the mortgage insurance and the related tax deductions during the purchase.

Property prices in Luxembourg :

In the Canton of Luxembourg, the average purchase price of a house is about 7800€ per m² for new flats and 40% lower in the north of the country.

These prices are much higher for new buildings than for "old" buildings. Indeed, an existing flat will reach 6500 euros per square meter.

The website of theHousing Observatory is a good way to monitor the evolution of the real estate market.

What are the procedures for buying in Luxembourg?

On average, the personal contribution is about 20% of the purchase price to obtain a real estate loan from the banks.

It is also necessary to take out outstanding balance insurance to purchase your property. This should be taken out with your insurer, AXA Varandas & Associés accompanies you to subscribe to it. It will allow you to protect yourself and your family in the event of a serious blow to the repayment of your loan and will often be a condition for banks to obtain a loan.

Once you have decided on a flat or house, the next step is to formalise your purchase by signing a preliminary sales agreement. To do this, you will need to appoint a notary who will be able to protect your interests. The notary's website in Luxembourg will help you in this respect!

You have recently arrived in the Grand Duchy and you wish to buy a property and protect your credit? Ask your insurance agency for advice by contacting theAXA Varandas & Associates Agency
16 Rue de Bastogne, L-9010 Ettelbruck, tel: 26 81 13 31, joao.varandas.agent@axa.lu

Article sponsored by AXA