03/10/2026
Thinking about buying a flat in Luxembourg to rent out?
Here is some good news: rents have been rising faster than the cost of living, and property prices have come down a little since 2022. That means renting out a home can bring in more than it did a few years ago.
But before you sign anything, remember one simple rule. In Luxembourg, the rent you charge each year cannot be more than 5% of what you invested in the property. The law is there to protect tenants, so your rental income has a limit.
My tip as your local agent: always look at what is left in your pocket after all the costs, not just the rent coming in.
New since Friday 2 October
New rules for affordable housing (Fonds du logement and other social landlords) are now in force. Tenants pay a €3,000 deposit, but they can spread it over up to two years. That is real help for families who struggle to find that money up front.
These changes do not affect private rentals, where the deposit stays at a maximum of two months' rent.
Questions about buying, renting or investing? Let’s talk 😊