Rent capping in Luxembourg: the legal framework
The annual cap remains 5%. Since August 2024, furniture has a separate monthly supplement of 1.5% of invoices less than ten years old.
For a completed home purchased for consideration and subject to private residential tenancy law. Owner construction, gifts, business premises, second homes and special regimes require separate analysis. A calculated ceiling does not authorise a rent increase: tenancy adjustment periods and limits still apply. Furniture is calculated only for 2025–2026.
How to calculate the revalued invested capital
Revalued price and eligible deed fees + revalued improvements − depreciation net of maintenance offsets.
ACD revaluation table
The table under Article 102(6) LIR depends on the year of the lease or rent adjustment. The calculation selects the corresponding ACD table for 2015–2026, then the coefficient for each investment year. The 2026 table is not applied retroactively.
Statutory depreciation
The law provides a 2% reduction per completed two-year period after fifteen years, excluding land. A purchase price presumed already depreciated is not depreciated twice. Documented maintenance costs offset the reduction.