Housing remains one of the highest monthly costs in Luxembourg. The high prices are compounded by a mandatory rental deposit, which guarantees the tenant's ability to pay and provides a 'safety net' for the landlord. Multiplying the cost of the first rent installment, some deposits can even reach 6-8 thousand euros.
However, it is possible to ask the government to provide a deposit. If an applicant fulfills all the criteria, the Ministry of Housing will act as guarantor.
Who is eligible for the aid
Absolutely anyone can receive financial aid for the rent deposit in Luxembourg, as long as they:
Has reached the legal age, being 18 years old at the date of application;
Resides legally in the country;
Does not own land. Or does not co-own or use a piece of land. Or has no right to develop any other property in Luxembourg or abroad;
Has a lease agreement for a residential property on the private property market. The property must be located in Luxembourg and be the fixed and principal place of residence of the tenant.
The next important requirement is the monthly income. It should not exceed a certain level determined by the Grand Duke's decree.
The threshold is determined by the family constitution and stands at:
3 181,56 euros per single person;
4 772,34 euros for a couple without children;
5 726,81 euros for a family with 1 child;
6 681,28 euros for a family with 2 children;
7 635,75 euros for a family with 3 children;
8 590,21 euros for a family with 4 children;
9 544,68 euros for a family with 5 children;
10 499,15 euros for a family with 6 children;
additional 954,47 euros per child after the 6th one;
In no case may the rent exceed 40% of the net family income.
What is net income? It is the income after all taxes and social contributions have been deducted. It includes:
child care allowance;
alimony received (alimony paid is deducted from income);
earnings for overtime hours.
Financial aid is only available if applicants can prove that they have been receiving regular income for to the application.
How to apply
The application is free of charge. If the candidate fulfills the criteria listed above, they can apply for state aid for a rental deposit. To apply, you must first complete a special form.
The form is accompanied by the supporting documents:
A declaration of household composition completed and signed by all applicants;
A declaration of honor signed by the applicant. If more than one applicant is applying, a signed declaration of honor must be added for each applicant;
An annual income certificate for the previous year issued by the employer;
A copy of the last 3 pay slips for each applicant;
If an applicant is a foreign citizen: a copy of the residence permit;
Certificate of registration issued by the Joint Social Security Centre Joint Social Security Centre ( — CCSS);
A copy of the lease agreement as soon as it is signed.
The completed application and the documents collected must be sent by post in a single letter to the Single point of contact for housing assistance at the Luxembourg Ministry of Housing:
Commitments and reimbursements
The beneficiary is giving a promise to keep the allowance for three years. If there is a conflict with the landlord as a result of which the landlord has applied to the state for taking a deposit, the state will pay it for you.
The tenant, in turn, will have to reimburse the state for the costs - in other words, return the deposit entrusted to him. If for some reason this is not possible, it is possible to request installment payments or complete exemption from them.
These issues are decided on a case-by-case basis and only if there is irrefutable evidence as to why payments cannot be made on time. One argument is force majeure.
Frequently Asked Questions (FAQ)
How long does it take to process an application?
What is the financial aid limit for covering the rent deposit?