Three distinct components
Duties owed to the administration, which form the largest part and go to public finances. They are not negotiable.
The notary's fees, set by grand-ducal regulation on a degressive scale. Professional sources place them in the order of around one per cent of the acquisition amount.
Disbursements, corresponding to costs advanced by the notary for the documents and formalities required.
Where a loan is involved, mortgage registration costs are added, forming a separate item.
| Component | What it bears on | Point to watch |
|---|---|---|
| Registration duties | The land | Not on the building to come |
| Deed costs and fees | The transaction | Distinct from the duties |
| Tax credit | The duties owed by the purchaser | Subject to a condition of occupation |
The rate and its base
The standard rate on property acquisitions is seven per cent, made up of six per cent registration duty and one per cent transcription duty.
The base is the price of the land and of any buildings on it.
This rate applies to houses, apartments and building plots.
The decisive rule for new construction
This is the most important point in this article, and it is often overlooked. The duties are calculated on the land, not on the building.
When land is bought in order to build, duties apply to the land alone. The building, constructed afterwards, does not enter the base for registration duty.
The same principle applies to an off-plan purchase, where duties apply only to the land share shown in the deed.
The construction falls under a different tax regime, that of the value added tax applying to housing, covered in the corresponding guide.
The consequence is direct: a construction project bears markedly lower duties than the purchase of an existing property of equivalent value, since the base is limited to the land.
The tax credit and its condition
A scheme that can cancel the duties, subject to a strict condition. It concerns the tax credit on the duties.
A tax credit on registration and transcription duties exists for the acquisition of a dwelling, known under a Luxembourgish name.
The central condition is personal occupation of the dwelling as a main residence. A rental investment or second home does not qualify.
It is granted per purchaser, which doubles it for a joint acquisition.
The application is made by the notary at the time of the deed, which presupposes having flagged the situation beforehand.
A caution on the amount: sources diverge on the applicable ceiling. Some mention one figure, others double that, reflecting successive increases introduced by legislation over the recent period, with a further change under discussion since July 2026. The exact ceiling must be checked with the notary or the administration before the deed, and no secondary source should be relied on for this.
What to check before the deed
Four checks, all before signature.
The exact amount of the tax credit applicable at the date of the deed, given the divergence noted.
Eligibility for the scheme, which depends on the intended use of the property.
The base applied, notably the distinction between land share and construction share.
The interaction with the tax regime applying to construction, covered in the guide on tax and support.
These four points fall to the notary, and they arise before the deed, not after.
What this means for a professional
Four rules.
Distinguish the three components in any estimate, the administrative share dominating by far.
Recall that duties on a construction apply to the land alone, which changes the order of magnitude.
Never state a tax credit amount without checking, sources diverging.
Refer questions of base and eligibility to the notary, which fall within their competence and bind the deed.
This article reflects the state of the data at the date of checking and serves professional orientation. It does not replace tax advice or consultation of a notary.