Renting accommodation, the lease agreement

Signing a Lease in Luxembourg: What You Need to Know in 2026

The rental market in Luxembourg is demanding and competitive, particularly for newly arrived expats. Since the reform took effect in August 2024, the rules have changed to better regulate the relationship between tenants and landlords. Here is the essential information you need to know before signing a lease in Luxembourg.

A written lease agreement is now mandatory

Since 2024, the lease agreement must be in writing. It must clearly specify:

• the amount of rent and utilities,
• the term of the lease,
• the terms of termination,
• the amount of the security deposit,
• the rights and obligations of each party.

This framework enhances transparency and provides particular security for international tenants who are unfamiliar with local legislation.

Rent Cap in Luxembourg

Under Luxembourg law, the annual rent must not exceed 5% of the capital invested by the landlord.

In practice, it is sometimes difficult to verify this amount, but this principle remains an important legal benchmark.

Furthermore, rent cannot be increased by more than 10% every two years, except in specific, regulated cases.

You may be eligible for rent subsidy assistance. Consult our dedicated guide.

Lease Term and Termination Conditions

The lease term is freely agreed upon between the landlord and the tenant. In practice:

• leases are often signed for 1 to 3 years;
• upon expiration, they may be renewed or become open-ended.

The standard notice period for the tenant is generally 3 months.

In the event of early termination, the tenant generally remains liable for rent until the end of the notice period, unless a replacement tenant is found with the landlord’s consent.

Unlike in other countries, the diplomatic clause is not provided for by Luxembourg law, but can be negotiated on a case-by-case basis.

Rental guarantee: a more protective framework

The rental security deposit is now capped at 2 months’ rent excluding utilities (compared to 3 months previously).

• Part of the security deposit must be returned promptly after the move-out inspection,
• The balance is paid after the utility bills have been settled.

We recommend opting for a bank guarantee rather than a direct payment to the landlord.

Real estate agency fees: a fairer split

Since the reform, agency fees must be split between the tenant and the landlord (50/50).

This measure significantly reduces the costs of moving into a home in Luxembourg.

Pets: Permission is often required

The lease agreement may prohibit pets.

If this applies to you, it is essential to obtain written permission from the landlord before signing.

Documents required to rent a home in Luxembourg

To maximize your chances in a tight market, prepare a complete application package:

• proof of identity (ID card or passport),
• your last 3 pay stubs or an employment contract,
• proof of financial stability (stable income),
• a rental guarantee,
• home insurance covering rental risks.

Having these documents ready during viewings allows you to make a quick decision on a property.

Mandatory Home Insurance

In Luxembourg, all tenants must purchase insurance covering rental risks, including:

• fire,
• water damage,
• liability.

For furnished rentals, contents insurance is also recommended.

Learn more about home insurance in Luxembourg

Inventory: an essential step

Conduct a detailed inventory of fixtures upon moving in and moving out.

This document, signed by both parties, is essential to avoid disputes when the security deposit is returned.

Mandatory energy performance certificate

The landlord must provide the property’s energy performance certificate (EPC).

This document is mandatory and valid for 10 years.

Housing safety: smoke detectors

Since January 1, 2023, housing units must be equipped with at least one smoke detector:

• in hallways and escape routes,
• in bedrooms.

Practical tips for expats in Luxembourg

• Plan ahead: the market is very competitive,
• Prepare a complete application package in advance,
• Read your lease agreement carefully,
• Don’t hesitate to negotiate certain terms (term, notice period, pets, etc.).

Understanding the rules of renting in Luxembourg will help ensure a smooth move and allow you to approach your move abroad with greater peace of mind.

Find a Rental in Luxembourg with the Help of Real Estate Professionals

In a particularly competitive rental market, turning to professionals is often the most effective way to quickly find housing in Luxembourg. Real estate agencies, specialized portals, and relocation companies offer structured support, which is particularly helpful for expats.

Check out real estate portals in Luxembourg and the Greater Region

Real estate portals in Luxembourg are an essential first step. They offer a wide selection of apartments and houses for rent, both in Luxembourg and in the Greater Region (Belgium, France, Germany).

To optimize your search:

• create custom alerts (budget, location, number of bedrooms),
• respond quickly to new listings,
• prepare your application in advance so you can apply immediately.

Note: In a tight market, many properties are rented out before they are even listed (off-market). It is therefore essential to use multiple search channels.

Working with a real estate agency in Luxembourg

Working with a real estate agency in Luxembourg gives you access to a selection of properties that are often not visible online.

Real estate agencies assist you at every step:

• selecting properties that meet your criteria,
• organizing viewings,
• preparing and presenting your application,
• drafting the lease agreement,
• conducting the move-in and move-out inspections.

Their knowledge of the local market is an asset that ensures a successful search and saves you time.

Good to know for landlords: entrusting the rental process to an agency allows you to delegate all administrative and organizational tasks.

Rental fees in Luxembourg: what has changed

Since the 2024 reform, real estate agency fees must be split between the landlord and the tenant (50/50).

In practice:

• the fees generally amount to one month’s rent plus VAT,
• the move-in inspection is often included in these fees.

In addition, the tenant must provide:

• a rental guarantee capped at two months’ rent excluding utilities,
• mandatory home insurance.

The return of the security deposit is now regulated and faster, which strengthens tenant protection.

Relocation agencies: tailored support for expatriates

Relocation agencies are key partners for people relocating internationally. They offer comprehensive support for settling in Luxembourg.

Their services generally include:

• an analysis of your needs (budget, location, lifestyle),
• pre-selection of suitable housing,
• organizing property viewings,
• assistance with signing the lease,
• assistance with administrative registration (city hall, school, etc.).

They can also:

• organize your arrival in Luxembourg,
• help you explore the neighborhoods,
• facilitate your children’s enrollment in school,
• guide you through your initial daily tasks.

This type of support is particularly well-suited for expats who want to save time, ensure a smooth transition, and receive guidance in what can sometimes be a complex environment.

Hire professionals to find a rental in Luxembourg

Practical tips to maximize your chances of finding a place to live

• Use multiple channels: real estate portals, agencies, personal networks,
• Be proactive: properties go fast,
• Prepare a complete application package from the very first visits,
• Be flexible on certain criteria (location, size).

In a competitive market like Luxembourg’s, professional guidance can make all the difference in finding a home quickly and stress-free.

What steps should you take after finding a place to live in Luxembourg?

Once you’ve found a place to live in Luxembourg, there are several administrative and practical steps you’ll need to take right away. Some are mandatory, while others are essential to ensure a smooth transition and avoid unexpected costs, particularly regarding home insurance.

Report your change of address in Luxembourg

In Luxembourg, moving into a new home requires an official declaration to your municipality of residence.

You must register your residence within a few days of moving in.

• The declaration must be made in person at the municipal office,
• You will need to present a form of identification (passport or ID card),
• For families, the family register may be requested.

If you move to a different municipality in Luxembourg:

• you do not need to notify your former municipality of your departure;
• you simply need to register with your new municipality.

For foreign newcomers, additional documents may be required:

• employment contract,
• proof of income,
• documents related to your residency status.

Practical tip: Check directly with your municipality, as requirements may vary slightly.

Home insurance in Luxembourg: an essential step

Unlike in other countries, home insurance is not legally required in Luxembourg. However, in practice:

• it is almost always required by landlords,
• it is essential to protect you financially in the event of a claim.

In the event of a fire, water damage, or other disaster, costs can be very high if you are uninsured. You would then be personally responsible for the repairs.

Why get home insurance in Luxembourg?

The right home insurance policy covers:

• water damage,
• fire,
• damage caused to third parties (liability),
• your personal belongings (especially in furnished housing).

It provides essential peace of mind, particularly when living abroad, where any unexpected event can have a significant financial and emotional impact.

Choosing the Right Home Insurance

Not all insurance policies are created equal. It is recommended that you:

• compare the coverage offered,
• check the coverage limits,
• tailor the policy to your situation (furnished, shared apartment, family, etc.).

Personalized assistance can save you time and help you avoid coverage mistakes.

Simplify the process with tailored support

Whether you’re a newcomer or transferring within the company, having the right support throughout the process allows you to:

• save time,
• ensure a smooth transition,
• avoid oversights or administrative errors,
• choose home insurance that truly fits your situation.

Need help insuring your home in Luxembourg?
Let us help you find a simple, fast solution tailored to your needs.