Buying Property in Luxembourg as a Cross-Border Worker: What You Need to Know

🏡 Introduction

With a dynamic real estate market and historically favorable taxation, Luxembourg remains an attractive place to invest — even for those living beyond its borders. Every year, thousands of residents from France, Belgium, and Germany cross into Luxembourg for work… and many consider investing in local real estate.

However, buying property in Luxembourg as a non-resident comes with its own set of rules, especially regarding financing, taxation, loan approval, and available benefits. Here’s what you need to know.

 

🔓 Can Cross-Border Workers Buy in Luxembourg?

Yes. There are no legal restrictions preventing non-residents from buying property in Luxembourg — whether for future occupancy, for a family member, or as an investment.

However, certain nuances apply when it comes to mortgage eligibility and tax treatment, which can influence the success of your project.

 

🏦 Getting a Mortgage as a Cross-Border Buyer: Doable, But Structured

Luxembourg banks do finance cross-border buyers. However, they often require more documentation due to different legal and fiscal systems in the buyer’s country of residence.

 

Common bank requirements:

• Stable and verifiable income: Typically a permanent contract. Self-employed borrowers must provide several years of balance sheets.
• Additional documents: Proof of tax residency, payslips, tax returns, and sometimes sworn translations.
• Collateral: In some cases, an additional mortgage on property in the home country is required.
• Rates and terms: Often similar to residents, unless the profile involves higher perceived risk.

 

💰 Taxation and Benefits: What Changes for Non-Residents

• "Bëllegen Akt" Tax Credit: Reserved for Luxembourg tax residents. Not applicable unless you relocate your tax residence.
• 3% VAT on New Housing: Only possible if you occupy the property as your main residence within 5 years.
• Capital gains at resale: May be subject to double taxation depending on treaties with your country of residence.

 

📍 Practical Considerations

• Longer bank processing times due to document verification.
• Notary signing can be arranged remotely or via power of attorney.
• Foreign documents may require certified translations.

 

🧠 Tips for Buying as a Cross-Border Worker

1. Start preparing your financing file early.
2. Get a cross-border borrowing capacity simulation from a broker.
3. Anticipate extra costs (no tax credits, 17% VAT, etc.).
4. Compare offers between Luxembourgish and foreign banks.
5. Work with a notary experienced in cross-border cases.

 

🤝 How MORTGAGE.LU Can Help

At MORTGAGE.LU, we regularly assist cross-border buyers through every step of the buying process:

• Multi-bank comparisons and tailored advice
• Simulations adapted to your country of residence
• Negotiation of mortgage conditions
• Full support through to the notary signing

 

✅ Conclusion

Buying property in Luxembourg as a cross-border worker is absolutely achievable. But it requires good preparation and awareness of the local system. With MORTGAGE.LU, you benefit from expert support to secure your loan and obtain the most favorable conditions.