If you’re staying for only a short time, e.g. less than five years, you’re probably better off renting. Owning your own home isn’t considered such an important an investment as it is in some other countries. Although property prices ‘boomed’ in the late ’80s and early ’90s, increases have slowed and high transfer (conveyance) costs discourage home ownership as an investment. The tax benefits of home ownership vary greatly.
The process of buying a home in Luxembourg is similar to the UK system, and you must use a notary to transfer the title once an agreement has been reached on the price. The most common sources of property advertisements are newspapers and estate agents, and ‘For Sale’ signs are rarely displayed in windows or gardens. Prices for houses are high, and many Luxembourgers prefer to buy a plot of land and build their own home. Deposits for property purchases are around 25 per cent and estate agents’ fees are high. There’s a 6 per cent transfer tax, and annual property taxes range from less than 1 per cent to around 8 per cent of the purchase price, depending on the commune.
This article is an extract from Living and Working in Holland, Belgium & Luxembourg.