Luxembourg Mortgage Guide for Non-Resident and Expat Buyers

The main lenders include BCEE (Spuerkeess), BIL, BGL BNP Paribas, ING Luxembourg and Raiffeisen. They treat three groups differently.

• Residents and cross-border workers employed in Luxembourg: the easiest to finance, usually up to 80% of the purchase price, and up to 90% on a main home in some cases with extra guarantees.
• Expatriates abroad earning foreign income: possible but case by case, with most banks wanting at least 25-40% down and a relationship with the bank.
• Investors buying to let: lower LTV, often 60-70%, and rental income assessed conservatively.

Banks look at total debt-service against net household income. Because prices are so high, a loan of several hundred thousand euros is normal, which means your income documents will be scrutinised line by line. Our Luxembourg property listings show the range from entry-level flats to large houses.

Luxembourg is in the euro area, so variable loans follow Euribor and fixed loans follow long swap rates. With the European Central Bank's deposit rate raised in June and September 2026, to 2.50%, offers are noticeably higher than during the 2020-2021 lows. Many borrowers pick a fixed rate for five to ten years and some banks offer capped-variable products. Competition among a small number of banks keeps margins fairly tight for strong customers, but you must negotiate. Use the mortgage calculator to see how a one-point rate change affects monthly payments on a large loan.

Buying in Luxembourg is expensive at the point of sale. Registration duty plus transcription tax together come to about 7% of the price on a resale, with a notary fee on top. A tax credit called the Bëllegen Akt can offset part of the duty for people buying a main residence, up to a ceiling per buyer, so a couple can recover more than a single purchaser. New builds from developers usually carry VAT instead of registration duty, and a reduced VAT rate may apply to a home you will occupy. Agents typically charge around 3% plus VAT, usually paid by the seller. Confirm every rate with the notary, as budget measures often adjust the reliefs.

Bring two to three years of tax assessments if self-employed, or recent payslips and your employment contract if salaried. Banks also ask for bank statements, ID, proof of address and a source-of-funds explanation, which is rigorous because of Luxembourg's role as a financial centre. Foreign documents may require translation into French, German or English, and some banks request an apostille. Salaried staff of international institutions can sometimes use a special employer letter.

1. Make an offer subject to finance on a house or apartment.
2. Sign a preliminary agreement, often with a deposit of around 10%.
3. Apply for the loan with two or three banks and compare the written offers.
4. The bank values the property and issues a binding offer.
5. Both parties sign the deed in front of a notary, and the mortgage is registered at the same time.
6. The notary pays duties and releases funds to the seller.

The condition-for-finance clause should give you a defined window, typically a few weeks, to secure the loan.

If you cannot borrow locally, think about paying a larger deposit from home-country equity or using a foreign lender that accepts Luxembourg collateral. Some buyers purchase smaller units such as a studio or look at commercial premises and land with different financing rules. Cross-border workers often live in neighbouring France, Belgium or Germany instead, where prices are far lower, so compare Luxembourg's market data with what you would get across the border. Rules on buying and residency are set out in our Luxembourg buying guide.