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In short: In Luxembourg, expect around 7% of the price in registration and transcription duties (6% + 1%), plus notary fees and disbursements. For a main residence, the Bëllegen Akt tax credit covers these duties up to €40,000 per buyer (€80,000 for a couple); a minimum of €100 always remains due. The annual municipal property tax is currently usually modest (based on a 1941 unitary value). As of 2026.

Property & Housing in Luxembourg: Buying in 2026

Kontoo editorial team · Updated 06/24/2026

Buying a home in Luxembourg involves far more than the listed price. Alongside the mortgage come notary fees, registration and transcription duties (around 7% of the price) and the annual property tax. Fortunately, the “Bëllegen Akt” tax credit sharply reduces those duties for a main residence. This chapter explains, for information only, how these items fit together. As of 2026; when in doubt, always check official sources.

Estimate your borrowing capacity: banks look at your down payment and a debt-service ratio often capped around 40% of disposable income.
Total the acquisition costs: registration duty 6% + transcription duty 1% = about 7% of the price, plus the notary’s fees.
Apply the Bëllegen Akt tax credit if the property becomes your main residence: up to €40,000 per buyer (€80,000 for a couple).
Plan the recurring costs: loan repayments, insurance and the annual municipal property tax.

What matters

Buying property in Luxembourg breaks down into three blocks: financing, one-off acquisition costs and recurring charges. Financing almost always runs through a mortgage-secured home loan. In 2026, observed fixed rates broadly range between about 2.8% and 3.7% depending on term, profile and the home’s energy performance (as of 2026, rates are volatile — check current offers). Banks examine your down payment and apply prudential rules, notably a debt-service ratio often capped around 40% of disposable income. Acquisition costs are dominated by registration and transcription duties: 6% + 1%, that is about 7% of the price. Then come the notary’s fees (official degressive scale), any mortgage deed and various disbursements. For a main residence, the Bëllegen Akt tax credit strongly reduces these duties, up to €40,000 per buyer (€80,000 for a couple), with a minimum of €100 always collected. Recurring charges include loan repayments, insurance and property tax. The latter is set and collected by the municipalities; calculated from a 1941 unitary value, it remains usually modest today. A property tax reform is in preparation and is expected to change this calculation in the coming years — watch for official announcements.

ExampleSimplified example for a couple buying at €600,000 (main residence). Registration and transcription duties: 7% × €600,000 = €42,000. Bëllegen Akt tax credit for a couple: up to €80,000, here −€42,000 (a minimum of €100 remains due). Notary fees and disbursements: to be estimated in addition per the scale. Result: for a first main residence the duties are almost fully neutralised, but fees and the mortgage deed must still be budgeted. As of 2026; figures rounded for illustration only.

Simulate your monthly payment and costs with Kontoo’s mortgage calculator (/mortgage-calculator), then cross-check the figures against the official details on Guichet.lu and the Indirect Tax Portal (AED).

In depth

Main residence and Bëllegen Akt conditions

The tax credit requires genuine personal occupation of the home as a main residence, in principle for at least two years. Failing the conditions can trigger a clawback. The exact terms are on Guichet.lu and the Indirect Tax Portal (AED).

Property tax reform

The current calculation rests on a 1941 unitary value, which keeps property tax low. A reform plans a new valuation base and an allowance for owner-occupiers; entry into force is expected in the coming years. Refer to official communications for the final timeline.

Checklist

Do I have a down payment covering at least the ~7% acquisition costs?
Will the property be my main residence, qualifying for the Bëllegen Akt?
Does my monthly payment keep a reasonable debt-service ratio (~40% max)?
Have I budgeted the annual property tax and insurance?

Common myths

Myth: “Notary fees in Luxembourg are just the notary’s charge.”

Reality: No. Most of the “fees” are the registration and transcription duties (≈7%) paid to the State, not the notary’s own fees, which follow a more moderate degressive scale.

Myth: “The Bëllegen Akt is paid out in cash to my account.”

Reality: No. It is a tax credit applied against the registration and transcription duties, claimed by the notary at the deed. It reduces the duty bill with no transfer, and a minimum of €100 remains due.

Frequently asked questions

How much are notary fees and duties in Luxembourg?

Registration duty (6%) and transcription duty (1%) come to around 7% of the price. On top of that are the notary’s fees, set on a degressive scale (roughly 0.5% to 1.65% across brackets), plus disbursements and formalities. As of 2026; confirm the details with your notary.

What is the Bëllegen Akt tax credit?

It is a reduction of registration and transcription duties when buying a home for personal use. It reaches up to €40,000 per buyer (€80,000 for a couple). The property must be occupied as a main residence (in principle for at least two years). The notary claims it at the deed; a minimum of €100 is always collected. As of 2026.

How much down payment do I need?

It depends on your profile and the bank. In 2026, a first purchase of a main residence can often be financed up to 100% of the price (excluding fees), while for other purchases the loan-to-value is usually lower. Covering at least the ~7% in fees with your own funds remains advisable. This is information, not financing advice.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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