Expatriates: Three essential tips for buying a home in Luxembourg

Buying a home in Luxembourg when you’ve just moved there can seem complicated. However, with proper preparation and professional guidance, the dream of homeownership becomes a reality. Ivo and Jérôme, mortgage advisors at Raiffeisen, share their practical tips to help expats make their plans a reality and avoid common pitfalls.

1. Define your household’s needs first and foremost

Right from the start, Ivo emphasizes: “The first thing to do is 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’ll need a larger home. Then, you look at the market to see what’s available.” It’s only after this step that meeting with an advisor makes sense: “Together, we define your budget and your borrowing capacity.”

A clear understanding of your needs is the foundation of a well-planned project. This prevents disappointment and allows you to target the right properties from the start.

2. Understanding Mortgages and Types of Rates

When asked about the contents of a real estate financing plan, Jérôme answers without hesitation: “Of course, we include the property itself, but also all costs associated with the purchase: notary fees, registration fees, application fees, and life insurance if necessary.”

He also notes that renovation work can be included in the loan, as well as essential fixtures like a kitchen for new homes: “You need to cook, so yes, a kitchen can be included!”

Since every 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 fluctuates with the market. Advantage: you can pay off the loan faster without penalties. Disadvantage: you’re exposed to rate hikes.”
• Fixed rate: “You know your monthly payments from start to finish. It’s reassuring, but if rates drop, you don’t benefit from the lower rates. And in the event of early repayment, penalties may apply.”
• Adjustable rate: “A good compromise. The rate is fixed for a period, then renegotiated.”

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

3. Don’t overlook fees and tax benefits

Jérôme and Ivo remind us that every purchase comes with associated costs: “There are notary fees and registration fees. But for a primary residence, you’re eligible for a tax credit of 30,000 euros* per person.”

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

These factors can significantly influence the feasibility of a real estate project. Hence the importance of discussing them with an advisor who can simulate various 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 potential pitfalls, avoid mistakes, and structure the loan according to your situation.”

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

In summary: best practices for buying in Luxembourg

• Clearly define your housing needs: type of housing, family situation, location
• Assess your financing capacity from the start with a banking advisor
• Choose a rate suited to your profile: security or flexibility?
• Include all costs in your budget: notaryfees, registration, renovations, kitchen, and outstanding balance insurance
• Take advantage of housing tax credits: up to €40,000 per person for a primary residence
• Avoid rushing into a decision: always seek advice before committing
  
  

Thanks to these clear tips and Raiffeisen’s expertise, newcomers can approach buying real estate in Luxembourg with complete peace of mind. An important step toward establishing a lasting presence in the country.