It is not extremely complicated for a foreigner to buy property in Luxembourg. It does not require a residence permit, much less citizenship. The procedure of buying an apartment, a house, or an office in Luxembourg is not that different for a citizen and a non-citizen.
When a potential buyer has chosen the Luxembourgish property he wants to buy and has contacted an agent, there are three steps to follow:
At 53, boulevard Joseph II, L-1840 in Luxembourg is the state Chamber of Notaries. You can go there in person, but it is better to call and book services by phone at (+352) 44 70 21. You can also consult the vendor of the property to choose a notary.
Notaries handle all real estate transactions in Luxembourg, ensure their full legality, and protect sellers and buyers from scams.
If you are buying a house in Luxembourg, there is no way you can do without the help of this expert. The notary's services are not free. Usually, the notary will charge a fee of 7-10% of the transaction amount.
The buyer and the seller sign a preliminary contract with the notary. It specifies the value of the property, as well as penalties and interests in case of failure to close the deal.
Just as in the case of renting a house in Luxembourg, a deposit will be required when buying a house. It is transferred to a special notary bank account. Most often it is one-tenth of the value of the property being purchased.
Once the deposit is transferred to the notary, it can no longer be returned until the buyer and seller have both signed the purchase contract.
At this point, the deal to buy a house in Luxembourg (or any other real estate) gets delayed for a month and a half or two. There is nothing to be concerned about, as it is absolutely natural. During this time, the notary checks the documents provided by both parties very carefully.
Homes for sale in Luxembourg come in all shapes and sizes. The key to passing the check is to make sure that both parties are clean beforehand. Check the seller as well. If he or she, for example, did not mention that the property has a shady past, or forgot to tell you that the apartment is in the center of a court case over the inheritance, the preliminary contract must be terminated, and you will get the deposit back in its original amount.
If the documents check went well, the property can be paid for. Alongside the payment — the signing of the contract can take place now.
You can pay for the purchase, whether it is a house in Luxembourg, an apartment, or a commercial space, well after the contract has been signed. But try not to delay it too much.
Every purchase and sale of real estate is registered by the state notary. The buyer has 15 days to give the money to the seller after registration. The new owner will have major complications if he or she misses this deadline.
Besides paying for the property, you have to pay state fees and arrange the insurance, especially in the case of a mortgage.
As soon as you've paid for the property and received the contract, you are considered the rightful owner of housing in Luxembourg.
Insurance can cost from 7,000 to 30,000 euros. The exact amount depends on the specifics of the loan. It can be paid in installments annually or in full. Also, the cost of insurance can be deducted from your taxes. If the buyer repays the loan early, he or she will get a partial refund of the money paid for the insurance.