The keys to understanding property better.

The lease, the deposit, the fees and the support schemes.

• Residential leases and termination

  In Luxembourg, residential leases are governed by precise rules on the contract, the rent, the inventory of fixtures and termination. The lease must clearly set out the rights and obligations of the landlord and the tenant.

  The essentials

  • The lease is generally drawn up in writing, setting out the main terms of the tenancy.
  • If a rental deposit is requested, a written check-in inventory of fixtures, drawn up jointly by both parties, must be completed no later than when the tenant moves in.
  • For an unfurnished home, the maximum annual rent remains capped by the rule of 5% of the capital invested, in accordance with the terms laid down by law.
  • The tenant must generally give 3 months’ notice to terminate a lease that has become open-ended.
  • The landlord cannot end the lease at will: they must rely on a ground provided for by law, for example personal need, a breach by the tenant or a serious and legitimate reason.
  • Where the landlord terminates for personal need, the notice period is in principle 6 months.

  The team's advice

  Read the clauses on the length of the lease, the notice period and the termination conditions carefully before signing. When leaving, always give notice in writing so that you keep proof.

• The rental deposit

  The rental deposit protects the landlord against unpaid rent or charges and any damage found at the end of the lease. Since the reform that came into force in 2024, its amount has been more tightly regulated in Luxembourg.

  The essentials

  • For the new contracts concerned, the rental deposit cannot exceed 2 months’ rent excluding charges.
  • It can take the form of a bank guarantee or other forms provided for by the regulations.
  • Where a deposit is requested, a check-in inventory of fixtures must be drawn up so that any damage can be identified at the end of the lease.
  • If the check-out inventory is satisfactory and no sums are owed, half of the deposit must be returned within one month of the keys being handed back. The balance is then settled after the final statement of charges.
  • Under certain conditions, a tenant who does not have the necessary funds can apply for state aid to finance the rental deposit.

  The team's advice

  Include the rental deposit in your move-in budget from the outset. Also keep the inventory of fixtures and dated photos: they are the best reference when the deposit is returned.

• Letting agency fees

  When an estate agency is involved in letting a home in Luxembourg, the agency fees are split equally between the landlord and the tenant for the new leases concerned. This rule has applied since 1 August 2024, regardless of which party instructed the agency.

  The essentials

  • Agency fees are split 50% payable by the landlord and 50% payable by the tenant.
  • This split applies even if the agency was instructed by only one of the two parties.
  • Any clause providing for a split contrary to this rule has no effect.
  • The amount of the commission and the applicable conditions must be clearly disclosed before the lease is signed.

  The team's advice

  Include your share of the agency fees in your move-in budget from the outset, together with the first month’s rent and any rental deposit.

• Rent subsidy

  The rent subsidy is a financial aid granted by the State to households renting their main residence on the private market in Luxembourg whose rent is a heavy burden relative to their income. Its amount depends in particular on income and the composition of the household.

  The essentials

  • The aid can range from €10 to €520 per month depending on the household’s situation.
  • The home must be located in Luxembourg, rented on the private market and be your main and permanent residence.
  • The monthly rent excluding charges must represent more than 25% of the household’s net monthly income.
  • Income ceilings apply and vary according to the composition of the household.
  • The application must be submitted to the Guichet unique des aides au logement (one-stop shop for housing aid).
  • The aid is paid monthly for as long as the eligibility conditions continue to be met.

  The team's advice

  If your rent takes up a large share of your budget, check your eligibility as soon as you move in. The official simulator gives you a quick first estimate of the amount you might be entitled to.

• Furnished lettings

  In Luxembourg, a furnished home is subject to the general rules governing residential leases, with one important particularity: a rent supplement may be charged for the use of the furniture. This supplement must be clearly distinguished from the main rent in the contract.

  The essentials

  • The lease must be drawn up in writing and specify, among other things, the rent, the charges, the rental deposit and any supplement for the furniture.
  • The rent for the home remains subject to the legal cap, calculated in particular on the basis of the capital invested.
  • The landlord may charge a monthly supplement for the furniture, capped at 1.5% of the total amount of the furniture invoices.
  • Only furniture with invoices less than 10 years old at the time the lease is signed can be taken into account for this supplement.
  • A fitted kitchen is considered part of the home and is not included in the calculation of the furniture supplement.
  • Where a rental deposit is requested, a written inventory of fixtures, drawn up jointly by both parties, must be completed.

  The team's advice

  Always ask for the main rent and the furniture supplement to be clearly separated in the lease. For a furnished home, a detailed inventory with photos is also strongly recommended to avoid disagreements at the end of the tenancy.

• Unfurnished lettings

  In an unfurnished letting in Luxembourg, the home is let without furniture for the tenant’s everyday use. The contract remains subject to the general rules governing residential leases, notably regarding rent, the rental deposit and termination.

  The essentials

  • The lease must be concluded in writing and specify, among other things, the term, the rent, the charges and the rental deposit.
  • The maximum annual rent for an unfurnished home cannot in principle exceed 5% of the capital invested in the home.
  • The rent can only be adjusted in accordance with the rules and time limits laid down by the applicable legislation.
  • The rental deposit cannot exceed 2 months’ rent excluding charges.
  • Where a deposit is requested, a written, dated check-in inventory of fixtures, drawn up jointly by both parties, must be completed.
  • A fitted kitchen or certain fixtures attached to the home may be included without the property necessarily being considered a furnished letting.

  The team's advice

  Before signing, check exactly what is left in the home: fitted kitchen, light fittings, appliances or other equipment. List them clearly in the lease and in the inventory of fixtures to avoid any ambiguity when the tenant leaves.