In addition to the costs of the property itself, the buyer will need a significant amount of money for related expenses. Among them:
Real estate tax, which you will have to pay on any purchase. It will be 7% of the transaction amount.
VAT, which you have to pay when buying a home on the prime market. It will be 15% of the transaction amount.
From 7% to 10% of the transaction amount would make up notary fees.
€3000 to be paid in order for the property to be registered to the new owner by the state notary.
If the person buying a house in Luxembourg needs a mortgage, then he also needs another €3,000 to register for a loan.
Additional expenses also include the real estate ownership tax, which is paid annually.
As a result, if you buy an office, apartment, or house in Luxembourg, every year the Property Valuation Commission will send you a mail bill with the amount of the tax. Fortunately, it's not much, ranging from 0.7% to 1% of the value of the property that the Commission has calculated. The specific percentage differs from one municipality to another.
Even for major property owners in the country, this tax is rarely more than a hundred euros. And for most people, it is unlikely to exceed a couple of dozen.
Sources: author's article