100% financing of the purchase or construction price

If you want to buy or build an object for your own residential use in Luxembourg, we can offer you, together with our partner banks, a loan for the entire purchase price or construction price. In this case, you only have to bear the additional costs of the project with your own funds.

The following additional costs may apply to your financement:

The notary fees are partly fixed in tariffs. An explanation of the tariffs can be found on the website of the Chambres des Notaires du Grand Duché du Luxembourg (www.notariat.lu). In individual cases, for example if additional research is necessary, higher costs may be justified.

The property transfer tax is the tax that you have to pay when buying a property. In Luxembourg this tax is 7% of the purchase price. In the case of a construction project in which you only buy the ground before the start of construction, this is only calculated on the ground. If work has already started on the notarial act, the real estate transfer tax is calculated on the ground and on the part of the building that has been completed by this time.

If you buy for your own residential purposes, each buyer receives a discount of up to € 20,000 on this tax. This discount is known as "bellegen akt". You can only use the Bellegen Akt once. If you used part of the Bellegen Akt during a previous purchase, you can use the rest of the unused amount for a subsequent purchase.

Example:

If you and your partner purchase a property for € 600,000, the real estate transfer tax would normally be 7% of € 600,000, i.e. € 42,000. If you buy for your own residential purposes and have never bought in Luxembourg before, you and your partner can both benefit from the reduction on the real estate transfer tax and therefore only pay € 2,000 for the real estate transfer tax.

The residual debt insurance is an insurance in the event of death, the cover capital of which follows the debt of the loan. Coverage is highest at the beginning and goes to zero at the end of the term of the insurance. The premiums for this insurance can be paid, for example, monthly or annually. If the premium is paid once in a single sum and the insurance covers a loan on your main residence, this premium can be deducted from the taxable income. The deductible amounts can be found on the following page in our FAQ: 

What amounts can I deduct for tax purposes?

In Luxembourg, the seller pays the brokerage fee. You can therefore set these costs at zero when buying in Luxembourg. If you buy abroad, you may have to pay additional charges. When buying in Germany, the broker fee is currently 3% of the net sales price. That is plus VAT of currently 19%, a total of 3.57% of the purchase price.