Moving to Luxembourg without the stress, everything you need to know

Your mind’s made up. You’ve decided to settle in Luxembourg! OK, but not so fast. Before you start packing your boxes, a few questions need answering. How’s the local property market? How do lease agreements work? How long is the notice period? What insurance should I take out? Roger Neumann from the Neumann & Fernandes AXA agency is here to guide you.

How much does it cost to rent in the Grand Duchy?

According to the country’s housing watchdog, the Observatoire de l’Habitat, the average prices at the end of 2017 for Luxembourg City were € 1000 for a studio flat, € 1300 for a one-bedroom flat and € 1600 for two bedrooms. Prices spiral if you’re looking at a 3-bedroom flat, with nothing much under € 2300.When it comes to houses, the rental prices are more or less the same. Many newcomers to Luxembourg prefer to share a flat. Houses with 5 or more bedrooms, redesigned as flatshares, are common in the Grand Duchy. This is a popular solution for young people who have just arrived, as house-sharing offers lower rents, a larger surface area and allows them to find their feet in Luxembourg. Prices vary according to the location. For Luxembourg City, for example you can consult the map of the Observatoire de l’Habitat to get an idea of each district. The most affordable areas for rentals are the south of the city in the Cessange and Gasperich districts, the areas around Beggen to the north and Hamm to the east. Closer to the centre, the districts of Bonnevoie and Belair are good compromises with rents between € 21.5 and € 23 per square metre.

How to find your ideal home?

This is where the house hunting begins. A number of ad sites and a slew of real estate agencies are at the ready to make your work easier. There is no shortage of real estate agencies in the Grand Duchy, but their services come at a cost. A commission of one month’s rent excluding charges (approximately +17% VAT) will be charged. Finally, don’t hesitate to search on social networks. Facebook for example is overflowing with groups of expatriates who, when they leave their flat or room, post directly on the platform.

What do I need to know about the lease agreement?

You’ve finally found the property of your dreams but what about the rental lease? For the signature of the lease contract, in addition to your identity card, 3 last salary slips and employment contract, you will need home insurance. The owner will ask you for a certificate of rental liability insurance. What’s more, Luxembourg law requires the tenant to insure the belongings in their home with appropriate home insurance. Contact the Neumann and Fernandes AXA agency. After answering a few questions about your future home, you will be handed an insurance certificate to show your landlord when you move in. In Luxembourg, the rental lease runs, in principle, for 3 years and can be renewed 3 months before the term. If you leave the apartment before the end of the rental period, the notice period will also be 3 months. Finally, don’t forget to factor in the cost of the deposit. The amount is set at 3 months’ rent (excluding maximum charge) for furnished accommodation, and 2 months’ rent for unfurnished accommodation.

What are the other formalities you need to complete when moving to Luxembourg?

You’re almost there and the lease is signed and sealed! It’s time for you to register with the municipality to obtain your compulsory residence certificate. If you’re moving to Luxembourg City, the Citizen Service Centre, the Bierger-Center  welcomes you on Place Guillaume II and takes care of the formalities. All you need is your ID. As far as your vehicle’s concerned, you will have to take out car insurance. You have a period of 6 months to register it with your municipality. For your housing, car and health needs, contact the Neumann & Fernandes AXA agency, which can advise you and help you settle in, on +352 32 64 25, at 44 Rue Grande-Duchesse Charlotte, 7520 Mersch. Finally, if you own a dog, you are obliged to declare your pet to the municipal administration. A tax (about 10 euros) will be charged each year. This tax may vary depending on your municipality of residence. All that remains is to wish you a very warm Wëllkom (Welcome) in Luxembourg!
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