The decision’s been made: you’re moving to Luxembourg! Yes, but Before you start packing, you still have a lot of questions. What about the real estate market? How do lease agreements work? How long is the notice period? What budget should you allocate to housing, and what insurance should you take out?

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

Thanks to the rent simulator set up by the Luxembourg government, you can easily evaluate rental prices in Luxembourg.

Rents on the rise in Luxembourg

In July 2023, for example, average prices in Luxembourg City are €1,000 per month for a 30 m2 studio without parking. A two-bedroom apartment will cost you €1,700 per month. A 3-bedroom apartment costs €2,400 per month for 100 m2. You’ll need to pay an additional 300 euros for indoor parking.

Prices vary according to locality. The most affordable areas in luxembourg for rentals are the south of the city with the Cessange district, the north with Beggen and the east with Hamm. If you want to get closer to the center, the Bonnevoie and Hollerich districts can be a good compromise. Learn more about the real estate market.

How much should you spend on housing?

To calculate your housing budget, you need to take into account the monthly rent and add the monthly charges. These cover building maintenance and, depending on the rental, expenses for water, heating, electricity, etc.

Don’t forget to add the cost of the deposit paid to the landlord to guarantee the upkeep of your new home. The amount is set at 3 months’ rent (excluding charges) for furnished accommodation, and 2 months’ rent for unfurnished accommodation. This amount must be advanced to the landlord and will be returned to you at the end of the lease if the apartment is in good condition and you have paid your rent in full. Find out more about renting accommodation in Luxembourg.

You will also need home insurance. The owner will ask you for a certificate of rental liability insurance. Under Luxembourg law, tenants are required to insure their belongings with appropriate home insurance.
Contact our insurance partner AXA. After a few questions about your future home, you will have a certificate of insurance to show your landlord when you move in.

How to find your ideal home?

Call in the real estate specialists

Just starting your house-hunting in Luxembourg? It’s important to remember that the market is tight, and you’ll need to do everything you can to keep it that way.

To help you do just that, there are a number of advertising sites and real estate agencies to make your job easier. There’s no shortage of real estate agencies in the Grand Duchy. But their service comes at a cost. You will have to pay a commission of one month’s rent excluding charges (+17% VAT) if you go through a real estate agency.

So don ‘t hesitate to activate your network and search on social networks . Facebook, for example, is overflowing with groups of expats who, when they leave their apartment or room, communicate directly on the online platform.

Consider a shared apartment

With property prices and rents on the rise, more and more newcomers to Luxembourg are opting for shared accommodation.

In fact, the owners are remodeling the 5-bedroom houses with a view to offering them as shared accommodation. Whereas just a few years ago there were very few shared flats, today young singles can find lower rents and a larger surface area by turning to shared flats. The advantage of this solution is that you can settle into your new environment more quickly.

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 contract? To sign the lease contract, you’ll need at least your ID, the last 3 payslips and/or your employment contract.

In Luxembourg, rental leases are normally for 3 years. It can be renewed 3 months before expiry. If you leave the apartment before the end of the lease, the notice period will also be 3 months.

What other steps do you need to take when setting up?

Your project of installation becomes concrete: you have signed your lease! You still have a few administrative formalities to complete to comply with Luxembourg law.

Declaration of residence to the commune

It is time for you to register with the municipality to obtain your mandatory residency certificate.

If you move to Luxembourg City, the Bierger-Center welcomes you at Place Guillaume II and takes care of the formalities. All you need to bring is your ID.

Finally, if you’re a dog owner, you’ll need to register your faithful companion with the local authorities. You’ll have to pay an annual tax of a few dozen euros. This tax may vary from one commune of residence to another.

Insurance

In addition to home insurance, you’ll need to take out car insurance as soon as you move to Luxembourg. What’s more, you have 6 months in which to register your vehicle with a Luxembourg plate. To do this, you need toregister it with the administrative services.

For all your home, car and health insurance needs, contact our insurance partner AXA . These professionals will be able to advise and support you as you settle in.

We would like to wish you Wëllkom (Welcome) to Luxembourg!

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