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Luxembourg Property Tax - Tailored Tax Advice

Property Tax in Luxembourg

Updated on Monday 04th October 2021

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Property-Tax-in-LuxembourgForeign citizens who move to Luxembourg are attracted by the idea of having their own houses or apartments. This is possible under the country’s legislation and against having their places to stay, these must pay the same property tax as Luxembourg citizens.
 
If you want to own real estate no matter if you plan on living in the Grand Duchy or not, our Luxembourg lawyers can help you acquire a property here.
 
Below, we invite you to read about your financial obligations the Luxembourg property tax.
 

Real estate that is subject to the Luxembourg property tax

 
The most important aspects to consider when having to pay the property tax in Luxembourg is that real estate is divided into categories. There are 2 categories of taxable properties and one that is exempt from this levy.
 
Here are the types of properties for which the tax must be paid:
 
  • agricultural lands and forests enter the first one;
  • the second one covers commercial and mixed-use buildings, houses and apartments, building for other purposes, land plots, residential land plots.
 
In the category of non-taxable properties, one can find:
 
  1. government-owned properties and used for public services;
  2. properties belonging to charitable organizations;
  3. hospital buildings;
  4. buildings used by churches and other religious activities, including education;
  5. civil engineering places and other places of public utility.
 
Our law firm in Luxembourg is at the service of private persons interested in acquiring real estate in the Grand Duchy. Our lawyers will help each type of buyer to purchase and register the desired land plot or building with the Land Register.
 

Who must pay the property tax in Luxembourg?

 
The Luxembourg property tax is a direct tax that is paid at communal level by natural persons and companies. It applies to residents and non-residents as the real estate in located in this country.
 
As mentioned above, the levy is applied on built properties, but also on land.
 
If you are foreign citizen interested in relocating to Luxembourg, there are several types of properties you can acquire, and our lawyers are at your disposal with various real estate-related services.
 

Property tax assessment in Luxembourg

 
In order to determine the payment of the Luxembourg property tax, the Inland Revenue drafts and sends out property tax assessments to each owner. The papers indicate the amount and the deadline to respect upon payment.
 
The tax to be paid is computed after a specific formula which implies the tax base established at national level calculated at communal level.
 
The assessment rate ranges between 0.7 % and 1 %, based on the real estate category and where it is located.
 
The assessment is made by the Real Estate Appraisal Department with the Luxembourg Tax Service.
 
You can rely on our Luxembourg law firm for more information on the tax legislation applicable in this country, especially if you are a foreign citizen or investor and plan on moving here.
 

Luxembourg companies and the property tax

 
When setting up a company in Luxembourg, its net assets can take the form of money or other assets, among which real estate are quite valuable. In this last case, the amount of the tax can be offset against the business’ profits in its corporate tax declaration, if the respective property is deemed as one of its net assets.
 
For more information on this aspect, you can discuss with our tax lawyers in Luxembourg.
 

Payment of the property tax in Luxembourg

 
The Luxembourg property tax must be paid under different calendar dates that depend very much on the amount. It must be paid as it follows:
 
  • for amounts of maximum 55 euros, the last payment day is November 15th of the current year;
  • for amounts ranging between 55 and 110 euros, payments must be made by May 15th (the first installment) and November 15th (the last one);
  • for amounts exceeding 110 euros, the payment can be made in 3 installments: February 15th, May 15th and November 15th.
 
If you want to acquire a property in Luxembourg, you can rely on our lawyers.
 

Why should you buy real estate in Luxembourg?

 
Luxembourg is one of the most desired places to live in Europe and owning a property here comes with many advantages, among which having a vacation house or even real estate through which an additional source of income can be obtained from its rental.
 
Our lawyers in the Grand Duchy can help you purchase a house or an apartment if you are private citizen and will inform you about the taxes you need to pay.
 
Do not hesitate to contact us for detailed information on the taxation system, and most importantly on the Luxembourg property tax if you are planning on purchasing real estate in this country.