Solicitors / Lawyers Website Addresses
Buying
real estate in Luxembourg
When you have found the right property for you, a written contract, or "sales
agreement" is used to conclude a buyer/seller agreement, which is also governed
by the law. Oral contracts to bind both parties are also accepted. Please note
that it can be notoriously difficult to find a home for sale in Luxembourg due
to population and demand with "for sale boards" not being widely used. "Word
of mouth" can be an advantage! The property transaction is always registered
and recorded in the notary's deed. A public notary will present the sale deeds
for recording in this register. You would then be expected to pay duty within
15 days of signing.
Solicitor / Lawyer
A solicitor/lawyer or notary should be used to draw written contacts for submission
to the public notary.
Fees
The cost of property registration would be 6%, with an additional 1% transcript
tax and is based on the acquisition price, which is expected to be not lower
than the market value. If you are to declare in the purchase deed your intention
to resell the property, the registration tax would be raised to around 7.2%,
however up to 5% can be recovered if resale is registered within a four-year
period (the taxes due within Luxembourg City can be up to 50% more). V.A.T would
not normally be applicable (current rate 15%).
Property Tax
Tax is payable for municipal services and vary between 0.7-1% per annum but can
be multiplied for co-efficients is based on the official value of the property.
Net wealth tax at a rate of 0.5% can also be levied annually.
For more information on Luxembourg Property and
to arrange your viewing visit:
Luxembourg
Property Viewing Arrangements
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