The keys to understanding property better.

What you need to gather, and what the tax office expects.

• The steps of a sale

  A successful property sale is prepared well in advance. A consistent price, a complete file and a careful presentation generally allow the property to be marketed on better terms.

  The essentials

  • Start by having the property valued at market price, taking into account its features, its location and comparable properties.
  • Gather the main documents from the outset: energy performance certificate, plans, title deed, co-ownership documents and other relevant documents depending on the type of property.
  • Prepare the marketing: photos, listing, advertising, organising viewings and qualifying buyers.
  • Receive offers, negotiate the terms and then formalise the agreement in a preliminary sale agreement.
  • Once the conditions are met, the sale is completed by signing the notarial deed.

  The team's advice

  The initial pricing is essential. A property listed too high can lose visibility and stay on the market longer. A realistic valuation from the start generally makes it easier to defend its value during negotiations.

• Capital gains on property

  Selling a property can generate a taxable capital gain, depending on the type of property and how long it has been held. A main residence, however, benefits from special tax treatment.

  The essentials

  • The sale of your main residence is in principle exempt from capital gains tax, subject to the conditions laid down by the regulations.
  • For any other property held for less than 5 years, the gain is treated as a speculative profit and taxed at the ordinary progressive rates.
  • For a property held for more than 5 years, the gain falls under the disposal gain regime and benefits from more favourable tax treatment.
  • In particular, a ten-yearly allowance of €50,000 may apply, increased to €100,000 for certain jointly taxed couples, subject to conditions.
  • The sale must be declared to the Administration des contributions directes (direct tax authority), even when the property sold is the main residence.

  The team's advice

  Before putting a property that is not your main residence up for sale, have the applicable tax calculated for your situation. The amount of tax can have a significant impact on the net proceeds of the sale.

• Documents to gather

  A complete file from the moment the property goes on sale reassures buyers, makes the notary’s work easier and helps anticipate any potential obstacles before signing. The documents required may vary depending on the type of property and its situation.

  The essentials

  • The title deed and, if you have them, the plans of the property.
  • A valid energy performance certificate (energy passport).
  • Building permits and documents relating to any works, alterations or extensions carried out.
  • For a property in co-ownership: co-ownership rules, service charge statements, minutes of general meetings and other relevant co-ownership documents.
  • Depending on the property, the notary or the buyer may also request other documents during the transaction.

  The team's advice

  Gather these documents as soon as the property goes on sale. The more complete the file, the simpler and smoother your dealings with buyers, the bank and the notary will be.

• Energy performance certificate

  The energy passport, or energy performance certificate, assesses the performance of a building or home according to energy classes. It is generally required when a property is sold or let in Luxembourg.

  The essentials

  • The energy passport is drawn up by a professional authorised to carry out this type of certification.
  • It is in principle valid for 10 years, unless certain works or alterations require it to be renewed.
  • It provides information on the building’s energy performance in particular and makes it easier to compare homes.
  • The required energy information must be disclosed when the property is marketed.
  • The document must be handed over to the buyer or made available to the tenant, as the case may be.

  The team's advice

  Check that your energy passport is still valid as soon as you consider selling or letting. If it needs to be renewed, order it early so as not to delay listing the property.

• Buying in a co-owned building

  Buying a flat in Luxembourg means becoming the owner of your private unit, but also a co-owner of the building’s common parts. You therefore contribute to the charges, collective decisions and general running of the co-ownership. Before committing, it is important to fully understand how it is organised and its financial situation.

  The essentials

  • The co-ownership rules set out, among other things, the rights and obligations of the co-owners, the division of units and the rules applicable in the building.
  • Charges are shared among the co-owners according to the shares attached to the different units.
  • A general meeting of co-owners is held at least once a year, notably to approve the accounts, vote on the budget and decide on works.
  • The syndic (managing agent) handles the administrative and financial management of the co-ownership, keeps the accounts and holds the main documents and minutes.
  • Before buying, check the current charges, any works voted or planned, the co-ownership budget and any calls for funds.

  The team's advice

  Before signing, ask to see the co-ownership rules, the service charge statements and the minutes of the latest general meetings. They help identify works already voted, major upcoming expenses and any sensitive issues concerning the building.