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Your guide to tenant rights, legal resources, and specialized lawyers in Luxembourg
🏠 Mandatory Written Contract
All residential leases must now be in writing and include mandatory clauses (parties' identity, rent amount, charges, deposit). Oral contracts signed after 1 August 2024 are null and void.
💰 Reduced Security Deposit — 2 Months Max
Maximum security deposit reduced from 3 to 2 months' rent. 50% must be returned within 1 month of departure if no damage or unpaid rent. Failure to return triggers a 10% penalty per month of delay. The deposit transfers automatically to a new landlord if the property is sold.
👥 Co-Living / Colocation Framework
Shared housing is now formally regulated. Landlords and all co-tenants must sign a co-tenancy agreement. Co-tenants must also sign a co-tenancy pact specifying rent/charge sharing and community rules. Co-tenants are jointly liable to the landlord.
🤝 Agency Fees Split 50/50
Real estate agency fees are now legally split 50% landlord / 50% tenant. Previously, tenants bore the full cost.
🏷️ Luxury Accommodation Regime Abolished
The "luxury accommodation" classification is fully repealed. All residential properties are now subject to the standard 5% invested-capital rent ceiling and automatic lease renewal protections — no exceptions.
🛋️ Furnished Property Supplement
Landlords may charge a monthly supplement for furnished accommodation of 1.5% of the value of furniture less than 10 years old, based on invoices. This supplement must be listed separately in the lease.
The legal rent ceiling remains at 5% of the capital invested in the property annually (land + construction + improvements). The amount of capital invested does not need to be stated in the lease.
Rent Revision: Rent may be revised every 2 years to reflect market value changes, capped at a maximum increase of 10%.
Late Deposit Penalty: If 50% of the deposit is not returned within 1 month of departure (without valid reason), the landlord owes 10% of monthly rent per month of delay.
Furnished Supplement: 1.5% per month of furniture value (invoiced, <10 years old), listed separately.
📕 Civil Code (Article 1714 as amended)
Amended by the Law of 10 July 2024 to require written residential leases and exclude verbal contracts.
📗 Law of September 21, 2006 (as amended)
Core residential lease law, substantially reformed by Bill of Law No. 7642 (in force 1 August 2024) — covering deposit limits, co-living, agency fees, and luxury regime repeal.
📘 Tax Law of May 22, 2024
Temporarily reduced capital gains tax on private real estate sales to ~11% to mobilise the property market and attract investors.