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Yes, a non-resident can freely buy property in Luxembourg. There are no nationality or residency restrictions for acquiring real estate in the Grand Duchy. However, non-resident status brings notable differences in taxation, bank financing and rental income reporting. This guide details the essential points to know before investing from abroad.
Registration duties (6% of the purchase price + 1% mortgage transcription fee) apply identically to residents and non-residents. However, the Bëllegen Akt tax credit (EUR 20,000 per person, i.e. EUR 40,000 per couple) is only granted for the acquisition of a primary residence personally occupied in Luxembourg. A non-resident buying for rental investment therefore cannot benefit. Moreover, non-residents are subject to Luxembourg income tax only on Luxembourg-source income (rental income, real estate capital gains). Bilateral tax treaties (France-Luxembourg, Belgium-Luxembourg, Germany-Luxembourg, etc.) prevent double taxation: rental income is generally taxed in the country where the property is located (Luxembourg), then exempted or credited in the country of residence.
Luxembourg banks (Spuerkeess, BIL, BGL BNP Paribas, Raiffeisen, ING Luxembourg) accept to finance non-residents, but with stricter conditions. The loan-to-value (LTV) ratio is generally reduced to 70-75% for a non-resident, compared to 80-100% for a resident acquiring their primary residence. Banks will often require a 25-30% personal contribution, a first-rank mortgage on the Luxembourg property, and sometimes additional guarantees (pledged savings, personal surety). Interest rates are comparable to those offered to residents, but the maximum loan term may be reduced (20-25 years instead of 30 years). It is advisable to approach several institutions and prepare a solid file including the last 3 tax assessments, pay slips, and a detailed financing plan.
A non-resident who rents out their Luxembourg property must file a Luxembourg income tax return (model 100F for non-residents). Net rental income (rents received minus deductible expenses: loan interest, insurance, maintenance works, building depreciation at 2% per year) is taxed at Luxembourg's progressive rate. The maximum marginal rate is 42% (taxable income > EUR 200,004), plus the employment fund contribution (7-9%). Non-residents benefit from the same deductions as residents on their Luxembourg rental income: debit interest, acquisition costs (Werbungskosten), building depreciation. In case of resale, the real estate capital gain is taxed in Luxembourg according to Article 99bis L.I.R. (quarter-rate of the global rate after 2 years of ownership). The tax treaty with the country of residence prevents double taxation.
By Erwan Bargain, REV TEGOVA · Updated: April 2026
No, Bëllegen Akt (EUR 20,000 tax credit per buyer on registration duties) is reserved for acquiring a primary residence personally occupied in Luxembourg. A non-resident buying for rental investment cannot benefit and pays full registration duties (6% + 1% transcription).
Luxembourg banks generally require a personal contribution of 25-30% of the purchase price for a non-resident (LTV of 70-75%), compared to sometimes 0-20% for a resident acquiring their primary residence. This ratio varies by bank, borrower profile and property location.