Buy Land in Luxembourg - Rely on Us for Professional Services
Buy Land in LuxembourgUpdated on Monday 04th September 2023
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Real estate, under the form of buildings and land ownership, is not subject to any restrictions in Luxembourg. If you are a foreign citizen or businessman interested in such an acquisition, you can purchase the type of property you are interested in. Below, our lawyers explain the procedure through which you can buy land in Luxembourg. If you need assistance during the procedure, our law firm is at your disposal.
The main laws governing real estate acquisition in Luxembourg
The main aspect to consider when discussing real estate in Luxembourg is that this term defines both buildings and land plots. This is why if you are interested in acquiring land in the Grand Duchy as a foreigner you must respect the following laws:
- the Civil Code;
- the Constitution;
- the Criminal Code.
Apart from these, there are also other specific laws that apply to buying land and other types of properties in Luxembourg such as:
- the Law on transcription of property rights of 1905;
- the Law on status of divided co-ownership of 1975;
- the Regulation on selling floor-plan buildings of 1985.
Considering the laws above are quite old, requesting the assistance of a lawyer in Luxembourg when concluding such a deal can be very helpful.
Verification procedure to buy land in Luxembourg
The process of land acquisition in Luxembourg is the same as for any property and it must start with due diligence. This is an important process, especially since the plot can be used for various types of activities. The main aspects to consider in such a transaction are:
- the destination of the land in respect to how it will be used;
- its size;
- whether the land is located in rural or urban areas;
- whether the plot is inside or on the outskirts of cities, towns, or villages.
Real estate due diligence can also reveal other conflicts related to the land to be acquired, which is why it is always best to perform such a verification with the help of our law firm in Luxembourg.
How long does it take to buy land in Luxembourg?
The procedure of acquiring a land plot in Luxembourg can be completed in a few days if you and the seller agree on the price and terms of the contract. The transaction must be completed before a public notary who will legalize the sale-purchase agreement. You do not have to be present in Luxembourg at the respective time if cannot attend, as there is the possibility to grant a power of attorney to a representative.
One of our lawyers can represent your interests during the transaction through a limited power of attorney.
Land registration with the Luxembourg Cadaster
Once you buy land in Luxembourg, you will need to complete a few more steps before being able to use it. The most important is to register the title deed with the Cadaster (Administration du cadastre et de la topographie or ACT). The procedure can be completed with the help of our lawyers after the notarial document is issued.
We are at the service of businesspeople and natural persons who want to acquire land in Luxembourg for commercial or personal use.
Fees to consider when buying land plots in Luxembourg
Luxembourg is one of the best quoted countries in Europe in terms of real estate ownership, which also includes land, which is why having a property here is more expensive than in other European countries. However, it is also very advantageous.
If you decide to purchase land in Luxembourg, here are the main fees and taxes to consider:
- notary fees are 1.5% of the cost of the property;
- the registration tax is 6% of the land value;
- the transcription tax is 1% of the value of the transaction.
If you need assistance in buying land in Luxembourg, contact us. Our lawyers will also help you apply for residency in Luxembourg after acquisition if you want to relocate here.