Buying a property in Luxembourg is a significant life achievement—whether you’re seeking a stable home, a long-term investment, or both. With high living standards, a strong economy, and a competitive real estate market, it’s no surprise that Luxembourg remains a top destination for property buyers.
However, beyond the asking price and monthly mortgage, lie several hidden property costs that can catch even experienced buyers off guard. At bllld.lu, we help you uncover these lesser-known expenses so you can budget wisely and purchase confidently.
1. 📝 Notary Fees in Luxembourg: Legal Costs You Can’t Avoid
All real estate transactions in Luxembourg must go through a state-appointed notary, making notary fees an essential part of the buying process.
Breakdown of Costs:
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Registration Tax: 6% of the purchase price
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Transcript Tax: 1%
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Notary Fee: ~1%, depending on complexity
💡 Good to Know: First-time buyers can benefit from the Bëllegen Akt tax credit, saving up to €20,000 per buyer (€40,000 per couple).
Example (for a €750,000 property):
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Registration: €45,000
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Transcript: €7,500
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Notary Fee: €7,500
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Total: €60,000 (less if eligible for tax credit)
2. 💰 Banking and Mortgage Fees: Beyond the Interest Rate
Banks in Luxembourg charge more than just interest on your mortgage.
Typical Costs:
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Application fees: €250–€1,000
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Property appraisal: €300–€500
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Early repayment penalty: up to 3% of outstanding capital
✅ Pro Tip: Always ask for a detailed mortgage cost sheet and evaluate the full cost of credit, not just the interest rate.
3. 🏡 Real Estate Agent Commissions: Who Actually Pays?
In Luxembourg, the seller hires the agent, but the buyer often covers the cost indirectly through a higher sales price.
Standard Commission:
3% of sale price + 16% VAT
🏷 Want to Save? Consider buying directly from a developer or private owner to skip this hidden fee.
4. 🔍 Property Survey & Technical Inspections: Optional but Crucial
Though not mandatory, technical surveys can prevent costly surprises in older properties.
Cost: €500–€1,200
What It Checks:
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Structural issues
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Electrical/plumbing systems
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Roof, windows, mold, and insulation
💡 Tip: Use findings to renegotiate or request repairs before closing.
5. 🔒 Home Insurance: Required Before You Even Move In
If you’re financing with a mortgage, insurance isn’t optional.
Required Coverages:
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Fire insurance
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Structural/building insurance
Optional:
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Contents coverage
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Civil liability
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Legal protection
Estimated Annual Cost: €200–€1,000+
🏠 Bundle & Save: Ask about combining policies for discounts.
6. 🛠 Renovation and Furnishing Costs: Customizing Your New Home
Most properties in Luxembourg, especially new-builds, are sold as shells without kitchens or lighting fixtures.
Common Costs:
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Painting/flooring: €3,000–€10,000
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Kitchen installation: €5,000–€25,000
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Furnishings: varies widely
📋 Watch Out: Check if permits are needed for larger renovations.
7. ⚡ Utility and Internet Connections: Unexpected Setup Charges
New or renovated homes may require utility activation.
Typical Setup Fees:
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Electricity, water, gas, internet: €50–€200 each
🔌 Checklist:
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Confirm what’s already connected
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Ask for recent utility bills if buying a resale property
8. 🏢 Co-Ownership Charges in Apartments: The Ongoing Cost
Buying in a multi-unit building? You’ll pay monthly or quarterly charges for shared amenities.
What’s Included:
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Common area heating
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Elevator upkeep
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Trash and cleaning
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Building insurance
Average Cost: €150–€500/month
📑 Essential Reading: Review recent co-owner meeting minutes and financial statements before you buy.
9. 🌍 Municipal Taxes and Local Fees: Small but Recurring
While property taxes in Luxembourg are lower than in other countries, they still exist.
Regular Fees:
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Impôt foncier (land tax)
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Waste collection and recycling fees
📆 Budget Tip: Factor these into your annual expenses even if they seem minor.
10. 💱 Currency Exchange Fees (For Non-Euro Buyers)
If you’re purchasing from outside the eurozone, foreign exchange rates and transfer fees can erode your budget.
Costs to Watch:
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Bank exchange margins (often 1% or more)
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International transfer fees
📉 Example: A 1% margin on €700,000 = €7,000 lost in conversion.
✅ Money-Saving Tip: Use a specialist FX service to get better rates and lower fees.
🧾 Final Thoughts: Budget Smarter, Buy Smarter
Buying a home in Luxembourg is more than just signing a mortgage agreement. With hidden property costs potentially adding 10–15% to your budget, preparation is key.
✅ Quick Recap:
| Cost Category | Estimated Range |
|---|---|
| Notary & Registration Fees | 7–8% of purchase price |
| Bank & Mortgage Charges | €1,000–€5,000+ |
| Agency Fees | 3% + VAT (often built in) |
| Property Survey | €500–€1,200 |
| Insurance Premiums | €200–€1,000/year |
| Renovation & Furnishing | €5,000–€30,000+ |
| Utility Setup | €150–€600 |
| Co-Ownership Fees | €150–€500/month |
| Municipal Taxes | Varies by commune |
| FX/Transfer Costs (Non-EU) | 0.5–2% of purchase amount |
At bllld.lu, we empower property seekers across Luxembourg to make well-informed, cost-aware buying decisions. Whether you’re a first-time buyer or seasoned investor, knowing what to expect helps you avoid financial surprises—and truly enjoy your new home.
Looking to buy in Luxembourg? Browse curated listings, real estate tips, and trusted local insights at bllld.lu. Your perfect property starts with clarity.
