With regard to the purchase of your property, you have to consider the following costs to calculate the price including all costs:
Value added tax (currently 17% or 3%):
Value added tax only relates to building costs.
There are currently two rates of value added tax applied in Luxembourg:
• 17% if the property is used for professional purposes or as a second home;
• 3% if the property is used as a main home by the owner for at least 2 years.
Notary costs are based on the tariffs determined by the State of Luxembourg. The notary can provide you with costs on request.
In the Grand Duchy of Luxembourg, the purchase rights for the purchase of a property are 7% (registration fee proportional to 6% + right of copy of 1%) on the value of the property. However, the amount of the registration fees may differ based on the following criteria:
– The buyer, who is resident in Luxembourg and intends to live in their own property, can benefit from a flat rate for the registration of €100.00 if the registration rights (i.e. 7% calculated on the amount of the property and any buildings, which have been created), do not exceed the tax exemption of €20,000.00 per person.
– The buyer, who is not resident in Luxembourg and intends to live in their own property, must advance the registration fees as calculated above, but can claim them back if they send the notary a residence certificate with which they can prove that they actually live in the property purchased.
– The buyer who states in the act of sale that they are buying the building with the aim of an early transfer is entitled to a partial reimbursement of the registration fees. In the event of a resale, the initial registration fee increases from 6% to 7.2% (by adding 1.2% tax). The right of copy remains unchanged at 1%. In the case of a resale, the registration fees due are 8.2% (proportional to 7.2% + right of copy of 1%). However, the reimbursement is 6% if the act of sale is registered during a period of two years (from the first date of sale). The reimbursement is 4.8% if the period exceeds two years when the act of sale is registered but is less than four years from the first sale.
In addition, the connection costs of the various distribution companies for electricity, water, television, etc., must be taken into account.
For your information: these connection costs are +/- €4,000 excl. value added tax per unit. This is a non-contractual estimate based on our previous projects, which can change depending on market prices.