Property tax in Luxembourg
See what Luxembourg's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Luxembourg, and what it does not.
Free to start. No card. Rules reviewed 12 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase (approximate)
EUR · Rates as at 12 July 2026 · Estimates, not advice
Rental income is taxed at progressive rates for residents and non residents alike. A representative simplified scale to ~45.8% including the 7 to 9% solidarity surcharge is used, and the statutory 23 band scale and its allowances are NOT modelled. On a sale, a SPECULATIVE disposal within two years is taxed at the full progressive rate while a long term one (held over two years) is taxed at HALF the global rate, approximated as the income scale halved; the €50,000 decennial allowance and reinvestment relief are not modelled.
How rental income is taxed in Luxembourg
For a resident owner: Progressive rates from 16% to 45.8%, stacked on other income in this country. The top rate of 45.8% applies above €220,788. For an owner living abroad and renting this out: Progressive rates from 16% to 45.8%, stacked on other income in this country. The top rate of 45.8% applies above €220,788.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss is ring fenced: it carries forward against future rental income rather than reducing other income now.
Capital gains on a sale
Gains are added to income and taxed at the marginal income rate.
Annual property tax while holding
An annual property or land tax is not modelled here, which is not the same as there being none. Treat holding costs on this page as excluding it.
What it costs to buy
Freeholt estimates this at 7% of the price. That is an average rather than the published rule, which is not modelled here yet. Registration duty 6% plus 1% transcription tax (~7% all in, and higher in Luxembourg City with its communal surcharge), with no foreign buyer surcharge. The Bëllegen Akt tax credit (up to €40,000 per person) offsets a MAIN home purchase only. The municipal impôt foncier is very low and is not modelled.
How Freeholt models Luxembourg
Every rate above is priced from Freeholt's own table for Luxembourg and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Luxembourg this covers the impôt foncier (a modest municipal property tax based on an outdated valuation base, not market value), copropriété/syndic charges for apartments, insurance, maintenance, and management fees (commonly 2 to 5% of rent).
How borrowing works here
Luxembourg mortgages typically run 25 to 30 years (occasionally longer for younger borrowers); buy to let lending is usually capped nearer 70 to 80% loan to value, well below what an owner occupier can borrow, and the bank needs to see provable income or savings behind the repayment rather than relying on projected rent.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ApproximateDuty on purchase
- Carried as one national average rather than the published scale, which differs by band and often by region.
- Not yetAnnual property or land tax
- Not priced here; the page says where the charge falls instead.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Any annual property or land tax, which may still exist here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Luxembourg with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Luxembourg property tax?
- Yes. Rental income tax, capital gains on a sale and duty on purchase are priced from Freeholt's own rate table for Luxembourg. Duty on purchase carries a simplification that the page names beside the figure. Annual property or land tax is not priced here, and the page says so rather than showing a zero. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Luxembourg taxed if I live somewhere else?
- Progressive rates from 16% to 45.8%, stacked on other income in this country. The top rate of 45.8% applies above €220,788. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Luxembourg figures as at?
- The rate table for Luxembourg was last reviewed on 12 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Luxembourg alongside everything else you own: see the year your portfolio starts paying you back.