Luxembourg property owners pay a recurring communal tax based on an ACD tax base and a commune rate. Buyers separately face registration and transcription duties, subject to any valid relief.
Luxembourg’s fund industry faces a selective shortage of compliance, risk, oversight and data specialists. Housing costs and eroded industry knowledge make the problem harder to solve.
A complete, current guide to what buying a house in Luxembourg really costs — registration duties, notary fees, the Bëllegen Akt tax credit, the deposit you need and the steps involved.
Luxembourg's state-backed housing developers sharply increased the number of homes they were building in 2025, the clearest sign yet that a construction slump triggered in 2022 may be easing. The Fonds du logement more than doubled its dwellings under construction to 1,227, and the SNHBM launched a record 473 affordable homes. But STATEC's latest figures show the private new-build market remains frozen, leaving the recovery lopsided and incomplete.
STATEC's hedonic index rose 0.7% in the first quarter of 2026 and 1.7% over twelve months, confirming that Luxembourg's deep housing correction has given way to a modest recovery led by houses and rebounding transactions — even as advertised rents climb far faster than incomes.
Luxembourg property developer Kindy Fritsch has announced a €130 million damages claim against Esch-sur-Alzette over the stalled Portal eent housing project, accusing the commune of deliberate sabotage. The figure, disclosed on LinkedIn rather than filed in court, would rank among the largest private claims against a Luxembourg municipality. It lands as Fritsch's empire faces insolvency and a major fraud investigation.
STATEC and the Observatoire de l'Habitat report Luxembourg house prices flat year-on-year in late 2025 while advertised rents rose 3%, deepening the divide between sidelined buyers and a tightening rental market.
Luxembourg's official housing report for the first quarter of 2026 shows sale prices stabilising, with the STATEC index up 0.7% on the quarter and 1.7% over the year, while advertised apartment rents rose 4.4% over twelve months — nearly three times inflation. The divergence leaves buyers facing a calmer, cheaper-to-finance market while new tenants continue to absorb the steepest increases.
Luxembourg's Chamber of Employees has welcomed the government's social reforms but says they fall short, demanding higher wages, pensions and family benefits as STATEC data show entrenched working poverty and housing strain.
EU staff are paid the same in Luxembourg as in Brussels despite living costs that an official study put 10.5% higher, mostly housing. Unions say the gap drives vacancies and a new €500 allowance falls short.
Luxembourg's government says it remains committed to building 6,000 homes a year, but in a written reply to parliament its housing and economy ministers acknowledged they cannot say whether the target is reachable. Output has run far below the goal for decades, permits are falling and the construction sector is shrinking.