Buying property in Luxembourg as non-resident: 2026 guide
Everything to buy property in Luxembourg as a non-resident: taxation, financing, declarations and worked examples.
01Legal framework and restrictions
Luxembourg imposes no nationality or residency restriction for the acquisition of property on its territory. A French, Belgian, German, British, American or other national can buy in full ownership an apartment, house, land or commercial premises in the Grand Duchy, under the same legal conditions as a Luxembourg resident.
The acquisition deed is signed before a Luxembourg notary, who ensures all formalities are met (mortgage clearances, possible municipal pre-emption, town planning compliance). The property is registered with the national land registry. Subsequent management (rental, resale) follows Luxembourg law, regardless of the owner's place of residence.
02Taxation and Bëllegen Akt
Registration duties (6% + 1% transcription = 7%) apply identically to residents and non-residents. The Bëllegen Akt (€40,000 per buyer, €80,000 per couple) remains accessible to non-residents PROVIDED the acquired property effectively serves as the new buyer's primary residence, with a commitment to move in within two years. This is consistent with the scheme's objective: making access to a primary residence easier, including for new residents.
For a buy-to-let investment (the property is rented to a third party, not occupied by the buyer), Bëllegen Akt is not accessible: the full 7% duties are due. The non-resident is taxed in Luxembourg only on Luxembourg-source income (rental income from the LU property, LU capital gains) at the IR progressive rate.
03Bank financing
Luxembourg banks (Spuerkeess, BIL, BGL BNP Paribas, Raiffeisen, ING Luxembourg) accept financing non-residents, with conditions slightly stricter than for first-time resident buyers. The typical LTV ratio for a non-resident is 70-75% (25-30% deposit required), versus 80-100% for a resident in primary residence.
Maximum loan term may be shortened (20-25 years instead of 30) depending on the borrower's age. Interest rates are comparable to those for residents (typically +0.2 to 0.5% margin possible). Documents required: 3 last tax assessments, 6 last payslips, employment contract, 3 months of bank statements, detailed financing plan. For a buy-to-let, the bank assesses the DSTI (Debt Service to Income) ratio including 70-80% of expected rent.
04Resident vs non-resident comparison
guide.achatNonResident.section4P1
| Buyer profile | 7% duties | Bëllegen Akt | Emoluments + mortgage |
|---|---|---|---|
| Resident couple, primary residence | €42,000 | −€42,000 | ≈ €11,700 |
| Non-resident couple moving to LU | €42,000 | −€42,000 | ≈ €12,500 |
| Non-resident couple, pure buy-to-let | €42,000 | €0 | ≈ €12,500 |
| Non-resident single, pure buy-to-let | €42,000 | €0 | ≈ €12,500 |
Simulate your non-resident acquisition
Our acquisition costs calculator handles the resident/non-resident status, Bëllegen Akt eligibility based on your occupancy plan, housing VAT and mortgage cost adjusted to your LTV.
Run the simulationFrequently asked questions
Short answers to the most common questions on this topic.
Can a non-resident benefit from Bëllegen Akt?
Yes, provided the acquired property effectively serves as the new buyer's primary residence, with a commitment to move in personally within 2 years of the deed. For a pure buy-to-let, Bëllegen Akt is not accessible and the full 7% duties are due.
What is the minimum deposit for a non-resident in Luxembourg?
LU banks generally require a 25-30% deposit for non-residents (LTV 70-75%), versus sometimes 0-20% for residents in primary residence. The ratio varies by bank, borrower profile and property location.
What documents to provide to the LU bank as a non-resident?
ID, last 3 tax assessments from the country of residence, last 6 payslips, employment contract, 3 months of bank statements, proof of deposit, detailed financing plan. For a buy-to-let, add the sale agreement and rental estimate.
How does the France-Luxembourg tax treaty work for real estate?
The 2018 France-Luxembourg treaty provides that property income and capital gains from a property in LU are taxable in LU. France exempts them but retains them to compute the global effective tax rate. You pay LU income tax on these, with no double taxation.
Do I need a LU bank account to buy?
Not mandatory for the deed (the notary accepts a transfer from abroad), but strongly recommended for subsequent management: rent collection, charges and tax payment, mortgage drawdowns. Several LU banks open a non-resident account within a few days.
What annual taxes does a non-resident owner pay?
Municipal property tax (modest, 0.1 to 1% of cadastral value), income tax on net rental income if rented (LU IR scale with deductions), possibly capital gains tax on resale before the exemption period. No wealth tax in Luxembourg.
Official sources
Statutes, circulars and publications consulted for this guide.
Related tools
Complete your analysis with these other tevaxia tools.
Resident vs non-resident, Bëllegen Akt by project, housing VAT, mortgage.
Borrowing capacity, monthly payment, DSTI/LTV ratios adapted to status.
Track yield of multiple properties over the long run.
Foreign buyer compliance for the LU notary and bank.
Related articles
Continue reading with these complementary guides.
Registration duties, transcription, notary fees and mortgage costs explained in detail.
Tax credit on registration duties for first-time primary residence acquisition.
Application of the super-reduced 3% VAT on housing construction and renovation in Luxembourg.