Mortgage rates in Luxembourg

How mortgages work in Luxembourg

Luxembourg mortgages (prêt hypothécaire / Hypothekenkredit) are typically indexed to Euribor plus a spread, similar to Portugal and Spain. Both variable and fixed-rate products are available. Most banking is conducted in French; some in German. English is increasingly accepted, especially in Luxembourg City branches.

Property prices are extremely high by European standards — a reflection of Luxembourg's economic strength, limited land, and international workforce. A typical house costs €800,000–€1,200,000. This means even a 25% deposit on an average property requires €200,000–€300,000 in cash.

ECB MFI data for Luxembourg can be sparse in some months due to the small banking volume. Rates shown on this page are based on the latest available ECB data, with any gaps filled using the prior month's figure.

Getting a mortgage as an expat in Luxembourg

Luxembourg's lenders are among the most experienced in Europe with international borrowers — a reflection of the country's makeup, where nearly half the population are non-Luxembourgers working at EU institutions, financial firms, and multinational companies. Foreigners face no legal restrictions on property ownership.

LTV limits and deposit requirements

Most buyers in Luxembourg require a deposit of 20–25%. First-time buyers may in some circumstances qualify for a mortgage with no upfront deposit, though this is not the norm. The high property prices mean that international buyers typically need to transfer €80,000 to €200,000 or more from overseas for the deposit alone.

Which banks lend to expats?

BIL (Banque Internationale à Luxembourg), BGL BNP Paribas, and Spuerkeess (the state savings bank) are the three most active lenders and have wide branch networks. ING Luxembourg also operates in this market. All four have significant experience with expat clients and most offer at least some English-language service.

How foreign income is assessed

Income from within Luxembourg and from EU countries is generally accepted with standard documentation. Lenders assess stable employment carefully; a permanent contract is preferred over a temporary one. Evidence of income includes payslips, tax returns, and bank statements covering the last two to three years.

What documents are needed

A standard application typically requires:

• Valid passport or national ID
• Proof of Luxembourg or EU-country address
• Last three months' payslips
• Last two years' tax assessments
• Last three months' bank statements
• Details of any existing credit commitments
• Property details and the compromis de vente once signed

Documents not in French, German, or Luxembourgish will typically need a certified translation.

Using a notaire

A notaire is required for all Luxembourg property transactions. Unlike France, it is common practice to use a single notaire for both buyer and seller, though buyers can appoint their own if preferred. The notaire handles the legal transfer, collects taxes, and registers the deed. Buyers who do not speak French or German are strongly advised to use a notaire who offers English-language support, or to hire an independent translator.

More information: Real estate guide: buying a house in Luxembourg

Buying costs beyond the mortgage

Budget 7–11% of the purchase price.

Cost	Amount	Notes
Registration tax	6%	Fixed rate; no regional variation
Transcription fee	1%	Land registry
Notary fees	1–2%	Mandatory
Total estimate	7–11%	Some relief may apply for primary residence buyers