Why a specific regime?
Luxembourg commercial leases are governed by the Civil Code and the Act of 3 February 2018. Initial rent is negotiated; the residential 5% ceiling does not apply. Term, renewal and termination depend on the applicable clauses and rules: this regime imposes no statutory nine-year minimum.
Indexation under the lease clause
The formula, index, dates and any cap must follow the contract. For a proportional clause: initial rent × review index / reference index. Use comparable indices from the same series and base. A percentage described as customary creates no legal cap.
Agreed term and termination
A lease may be fixed-term or open-ended (Civil Code Art. 1762-4). A 3–6–9 arrangement can be negotiated but is not automatic. Periodic exit options depend on the agreed clause. The regime provides at least six months’ termination notice; also check formalities and renewal rules.
Frequently asked questions
Does the 5% rule apply to commerce?
No. The 5% rule (legal rent cap based on reassessed invested capital) is specific to residential leases. For commercial leases, the initial rent is freely negotiated between landlord and tenant.
How is commercial rent indexed in LU?
The formula, index, dates and any cap must follow the contract. For a proportional clause: initial rent × review index / reference index. Use comparable indices from the same series and base. A percentage described as customary creates no legal cap.
What is the minimum duration?
A lease may be fixed-term or open-ended (Civil Code Art. 1762-4). A 3–6–9 arrangement can be negotiated but is not automatic. Periodic exit options depend on the agreed clause. The regime provides at least six months’ termination notice; also check formalities and renewal rules.
Can key money be required?
A supplement paid to the landlord or an intermediary for concluding the lease, known as key money, is prohibited by Article 1762-5. Distinguish it from agency fees or the price of a business transfer, which require separate analysis. Commercial lease security is capped at six months’ rent.