A Buyers Guide
If you’ve taken the decision to buy a house in Luxembourg, there are a few things that we believe you should know and consider.
It’s fair to say housing in Luxembourg is far from cheap, in fact prices increased by more than 11% in 2019 in some communes, Betrange and Strassen being the top 2.
The average price of a family house (as quoted by Delano.lu) came in at 742,335 Euro. Given this price, we suggest this is based on a smaller 3 bed property ~120sm.
The best properties sell quickly, with some not even making the online listings. It’s important to have a good relationship with the local estate agents and be prepared to chase them!
It’s worth bearing in mind that when you couple the cost of living with the massive amount of building projects going on in Luxembourg, securing tradesmen to work on your property is extremely difficult… and expensive. Pay attention to the detail when you review your property to understand the work that has to be done, and that you’d like to be done before you buy. Try and get quotes otherwise you can easily find yourself sitting on a property with tones of potential that’s completely unachievable.
Once you’ve found the property of your dreams you’ll want to make an offer. At this point you’ll be expected to sign a ‘Compromis de vente’ or sale agreement. Be warned, this is legally binding and should you change your mind you could be expected to pay 10% of the purchase price.
The next cost you’ll incur will be the mortgage fees, it’s worth shopping around here. In some instances your company will have arrangements with one of the banks. Remember to check with your HR team.
When it comes to signing the deeds you’ll incur legal (Notary) fees of ~1% of the purchase price of the property.
The final cost you’ll incur will be the property tax which is up to 6% of the final property price. The good news is that if this is your first property purchase in Luxembourg, and you remain living in the property for 2 years; you’ll benefit from exemptions up to 20,000 Euro per person (max 40,000 for a couple).
On the day you sign your deeds you’re likely to need to go to the bank and ensure the deposit and fee’s have been dealt with to ensure no delays at the Notary.
Once you’ve collected your keys and are ready to move in, remember to go to your local commune and register your living there. It’s advisable to do this as soon as possible so you can get registered for things like refuse and recyling and water.
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