Expatriates: Three essential tips for buying a home in Luxembourg

Buying a home in Luxembourg when you have just moved there can seem complicated. However, with good preparation and professional support, the dream of owning property becomes achievable. Ivo and Jérôme, mortgage advisors at Raiffeisen, offer practical advice to help expats realize their plans and avoid common pitfalls.

1. Define your needs first

From the outset, Ivo insists: "The first thing to do is to clearly define your needs." This means analyzing your family situation, your housing priorities (house, apartment, number of bedrooms, etc.) and your search area.

He continues: "If you have two children, you will need a larger home. Then you look at the market to see what is available." It is only after this step that meeting with an advisor makes sense: "Together, we define your budget and your borrowing capacity."

A clear vision of your needs is the basis for a well-planned project. This avoids disappointment and allows you to target the right properties from the outset.

2. Understanding mortgages and interest rates

When asked about the content of a real estate financing plan, Jérôme is straightforward: "Of course, it includes the property itself, but also all the costs associated with the purchase: notary fees, registration fees, application fees, life insurance if necessary."

He also points out that renovation work can be included in the loan, as well as essential equipment such as a kitchen for new homes: "You need to cook, so yes, a kitchen can be included!"

As each situation is unique, Raiffeisen advisors tailor the financing plan to each buyer's profile.

Which rate should you choose? Here are the available options:

• Variable rate: "It changes with the market. Advantage: you can repay faster without penalties. Disadvantage: you are exposed to rate increases."
• Fixed rate: "You know your monthly payments from start to finish. It's reassuring, but if rates fall, you don't benefit from the drop. And in the event of early repayment, penalties may apply."
• Adjustable rate: "A good compromise. The rate is fixed for a period of time, then renegotiated."

Ivo adds a reassuring point: "A law in Luxembourg protects buyers. For a primary residence, part of the loan is protected against repayment penalties."

3. Don't overlook fees and tax benefits

Jérôme and Ivo remind us that every purchase comes with additional costs: "There are notary fees and registration fees. But for a primary residence, you benefit from a tax credit of €30,000* per person."

• The amount of the allowance, known as a tax credit, was increased to €40,000 by Bill 8540, which became law on July 3, 2025, amending the amended law of July 30, 2002.

These factors can greatly influence the feasibility of a real estate project. That is why it is important to discuss them with an advisor who can simulate different scenarios.

A key piece of advice: "Always talk to an advisor before signing."

In conclusion, Jérôme delivers an essential message: "Before signing anything, talk to an advisor. We have the experience to identify sensitive issues, avoid mistakes, and structure the loan according to your situation."

He reminds us that useful resources are available on the websites justarrived.lu and raiffeisen.lu. This step can make all the difference between a successful project and an unpleasant surprise.

In summary: best practices for buying in Luxembourg

• Define your needs precisely: type of housing, family situation, location
• Anticipate your financing capabilities from the outset with a bank advisor
• Choose a rate that suits your profile: security or flexibility?
• Include all costs in your budget: notary, registration, renovations, kitchen, mortgage insurance
• Take advantage of housing tax credits: up to €40,000 per person for your primary residence
• Avoid rushing into signing: always seek advice before committing
  
  

Thanks to this clear advice and Raiffeisen's expertise, newcomers can approach buying property in Luxembourg with complete peace of mind. An important step towards putting down roots in the country.