Renting in Luxembourg: Tenant Rights, Deposits and Fees in 2026

Renting in Luxembourg changed substantially under the rental reform that took effect on 1 August 2024. The security deposit is now capped at two months' rent instead of three; estate-agency fees are split 50/50 between landlord and tenant rather than paid in full by the tenant; rent can rise by at most 10% every two years; and a tenant ends a lease with three months' notice sent by registered letter. Low-income tenants can also claim a monthly rent subsidy of up to €520. This guide explains each rule and the upfront costs to budget for.

How much is the deposit, and how do I get it back?

Since the reform, a landlord may ask for a deposit (garantie locative) of no more than two months' base rent — that is, rent excluding charges such as heating, water and shared building costs. Before August 2024 the legal maximum was three months, so the change cuts a major upfront cost.

The deposit can take several forms: a cash transfer, a bank guarantee, deposit insurance, or money placed in a blocked bank account — often a joint account in the tenant's name that neither party can touch without the other's agreement. A written état des lieux (inventory of condition) at move-in is essential: without it, a landlord has little basis to claim the property was damaged.

The reform also fixed firm deadlines for returning your money in two stages:

• 50% of the deposit must be returned within one month of the exit inventory, provided no damage is found and the rent is paid up.
• The remaining 50% follows within one month of you receiving the annual service-charge statement, which lets the landlord settle any outstanding charges first.

The maximum legal deposit a landlord can demand is now two months' rent, excluding charges — down from three months before the 2024 reform.

Who pays the agency fees and what are the move-in costs?

The biggest cost change is the agency commission. For every lease signed from 1 August 2024, the estate-agency fee is shared equally between landlord and tenant, whoever engaged the agency — and any clause shifting the whole cost onto the tenant is void. Previously the tenant typically paid the entire commission, usually around one month's rent plus 17% VAT.

In practice, expect to budget for the following when you move in:

• Deposit: up to two months' base rent.
• First month's rent, usually payable in advance.
• Your half of the agency fee, where an agency is involved — typically about half of one month's rent plus VAT.
• Advance charges (charges) for heating, water and building costs, billed monthly and reconciled once a year.

A written lease is now mandatory and must set out the parties, the property, the rent, the charges and the deposit. Always read it before signing.

When can my rent go up, and how do I end the lease?

Rent is no longer something a landlord can raise at will. Under the reformed law, rent may be increased by a maximum of 10% over a two-year period, and not more than once every two years. A separate ceiling also applies: annual rent may not exceed 5% of the capital the owner has invested in the dwelling. The old logement de luxe exemption, which let some high-end properties escape these caps, has been abolished.

To end an open-ended lease, a tenant gives three months' notice in writing by registered letter (lettre recommandée), which provides proof of the date. Leases come in two main types: fixed-term (a set end date) and indefinite (open-ended). A fixed-term lease runs to its end date and then renews or ends according to its terms, so check the wording before you sign. Landlords face tighter rules: they can generally only terminate for a legitimate reason — such as needing the home for their own or close family's use — and must give longer notice, commonly six months.

What state help can renters get?

Luxembourg offers two schemes through the Ministry of Housing and Spatial Planning, both applied for at the Guichet unique des aides au logement.

The rent subsidy (subvention de loyer) pays eligible low-income tenants between €10 and €520 a month. To qualify, your rent excluding charges must exceed 25% of your household's net income, your household income must be below the statutory limit, and the home must be your main residence on the private market. A May 2024 reform widened eligibility — it scrapped the reference-rent rule and the requirement to hold three months of income in reserve, lifted the income ceilings, and raised the supplement per dependent child to €80. Applications are accepted year-round and the amount depends on household size and income.

If you cannot raise the deposit itself, the state deposit guarantee lets the Ministry of Housing act as your guarantor. The deposit covered must not exceed two months' rent, your rent must not exceed 50% of household income, and you commit to saving the full sum over three years into a dedicated account. Both schemes use the same single contact point, reachable on (+352) 80 02 10 10.