The decision is made. You want to settle in Luxembourg! Yes, but before packing your bags, you have many questions: What about the real estate market? How do lease agreements work? How long is the notice period? What insurance do I need? Roger Neumann from the AXA Neumann & Fernandes agency is there to guide you.
How much does it cost to rent in the Grand Duchy?
According to the Observatoire de l’Habitat, the average prices at the end of 2017 for Luxembourg City are €1000 for a studio, €1300 for a one-bedroom apartment and €1600 for two bedrooms. The prices jump as soon as you move to a 3 bedroom apartment with 2300€. For houses, the rental prices are almost similar.
Many newcomers to Luxembourg prefer to share a flat. Houses with 5 or more bedrooms, converted into shared apartments are common in the Grand Duchy. It is a common solution for young people arriving in Luxembourg, as it offers lower rents, a larger surface area and allows them to make their mark in Luxembourg.
Prices vary depending on the location. You can consult the maps of the Observatoire de l’Habitat to get an idea by neighborhood.
The most affordable areas for rentals are the south of the city with Cessange and Gasperich, the north with Beggen and the east with Hamm. To get closer to the center, the Bonnevoie and Belair districts are good compromises with rents between 21.5€ and 23€ per square meter. Learn more about the real estate market.
How to find your ideal home?
It’s time for you to start your house hunting. For this, several websites and many real estate agencies make your job easier. There is no lack of real estate agencies in the Grand Duchy. But their service comes at a cost. A commission of one month’s rent excluding charges (approximately +17% VAT) will be requested.
Finally, don’ t hesitate to search on social networks. Facebook, for example, is full of groups of expatriates who, when they leave their apartment or room, communicate directly on the platform.
What do I need to know about the lease agreement?
You have finally found the property of your dreams, but what about the rental lease? For the signature of the lease contract, you will need your identity card, the last 3 pay slips and/or the work contract. You will also need home insurance. The owner will ask you for a certificate of rental liability insurance. Moreover, the Luxembourg law obliges the tenant to insure the goods present in his dwelling with an adapted home insurance.
Contact the AXA Neumann and Fernandes agency. After a few questions about your future home, you will have a certificate of insurance to show your landlord when you move in.
In Luxembourg, the rental lease lasts in principle 3 years and can be renewed 3 months before the end of the term. If you leave the apartment before the end of the lease, the notice period will also be 3 months.
Finally, don’t forget to add the deposit. The amount is set at 3 months’ rent (excluding charges) for furnished accommodation, and 2 months’ rent for unfurnished accommodation.
What other steps do you need to take when setting up?
Your project of installation becomes concrete: you have signed your lease! 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.
Concerning your vehicle, you will have to subscribe to a car insurance. You have 6 months to register it with your municipality. So for your home, car and health procedures, contact the AXA Neumann & Fernandes agency which will be able to advise you and accompany you in your installation, at +352 32 64 25, 44 Rue Grande-Duchesse Charlotte, 7520 Mersch.
Finally, if you own a dog, it is imperative to declare your faithful companion to the local administration. You will have to pay an annual fee of about 10 euros. This tax may vary depending on your municipality of residence.
We would like to wish you Wëllkom (Welcome) to Luxembourg!
AXA
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