Luxembourg housing lease: law 21.09.2006, 2026 rights

Residential leases in Luxembourg are framed by the modified law of 21 September 2006, which applies to any rental of a dwelling used as a primary residence (article 1). Excluded: short-term furnished holiday rentals, agricultural leases and commercial leases (governed by other laws). The contract must be in writing; without writing, the law still recognises the lease as soon as there is payment and occupation, but with a heavier burden of proof.

The lease is concluded for an indefinite duration by default. Fixed-term leases are possible but, at expiry, automatically convert into indefinite leases if the tenant remains in occupation without the landlord's opposition (tacit renewal). The contract must mention the parties, dwelling description, rent excluding charges, charge amount and calculation basis, deposit amount and entry date.

The initial rent is free but cannot exceed 5% of revalued invested capital (Art. 3 of the 2006 law). Rent can only be revised once every two years, and only upwards in line with the STATEC consumer price index, or if improvement works justify a re-evaluation of the invested capital. Revision must be notified by registered letter with one month's notice.

The deposit is limited to 3 months' rent excluding charges (Art. 5 of the 2006 law). It must be paid into a blocked account in the tenant's name at a Luxembourg bank; interest earned belongs to the tenant. Restitution must occur within a reasonable time after the lease ends (typically 1 to 3 months), minus any damages noted at the exit inventory. A State rental guarantee is available for eligible tenants via the Ministry of Housing.

The landlord must deliver the dwelling in good condition (Art. 1719 Civil Code), guarantee peaceful enjoyment, carry out major repairs (roof, facade, structure, major electrical compliance) and produce joint entry and exit inventories. The landlord may only recover from the tenant the charges exhaustively listed in the Grand Ducal Regulation of 16 June 2015: water/electricity/gas of common areas, collective heating, common area maintenance, elevator, municipal waste tax, building liability insurance.

The tenant must pay rent on time, use the dwelling responsibly, perform minor tenant repairs (seals, light bulbs, small fixings), comply with the building's regulations if any, and grant the landlord access for inspections or works. Failure to pay more than two months' rent exposes the tenant to judicial termination for serious breach with possible eviction, after a formal notice that remained unheeded.

The tenant may terminate at any time by registered letter with 3 months' notice (Art. 12 of the 2006 law). The landlord may only terminate with 6 months' notice and only for three legitimate reasons: personal occupancy need for themselves, spouse, ascendants or descendants; serious breach of contractual obligations by the tenant; demolition or reconstruction works making occupation impossible. Termination must be motivated in writing, on penalty of nullity.

In case of dispute (excessive rent, contested charges, unreturned deposit, contested inventory), the tenant or landlord may refer free of charge to the municipal Rent Commission of the dwelling's location (Art. 7 of the 2006 law). The Commission issues a non-binding opinion often followed by judges. If the opinion is ignored, the matter may be brought before the justice of the peace, or the district court for high rents.