What kind of help for renting in Luxembourg?

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Rudolphe ABEN

What kind of help for renting in Luxembourg?

You've found a suitable rental, but the price is out of your reach. Do you want to know how to finance your first home on a limited budget? When buying or renovating a home in Luxembourg, a number of financial incentives are offered by the government. How about rental assistance? Here is a quick overview.

The first type of housing assistance is the subsidy

Criteria for Participation

There are a few prerequisites that must be met before you can benefit from the rent reduction.

Renting a home in Luxembourg is reserved for adults who are permanent residents of the Grand Duchy.

Renting an apartment or a house implies that it will be used as a primary residence. The property must also be up-to-date in terms of security. Neither the applicant's family nor any of their relatives, nor any government entity, may rent the property.

To be eligible, an applicant cannot own, co-own or usufructuate another residence.

The household income must be stable for at least three months and not exceed a certain limit. The amount of rent must exceed 25% of the applicant's net monthly income.

Recognition of financial resources

Income from the previous fiscal year on the date of application for assistance is used to determine the final amount of assistance.

All pensions, parental leave benefits and other income received during the year are included (alimony or accident). Any pension contributions made by the applicant will reduce the total amount of their pension.

Another possibility: obtaining assistance to pay the rental guarantee

Landlords have the right to require rent guarantees in any situation. However, this guarantee can be difficult to obtain for some.

The good news is that financial assistance is available from the government. Who is it for, and how do I get it? Detailed information is provided by us.

Access requirements

There are a number of prerequisites for receiving rental guarantee payment assistance:

The applicant must be over 18 years of age, cannot be the owner or usufructuary of another principal residence, and the rental property must serve as his or her principal residence. It must be physically located in Luxembourg; a conditional guarantee contract must be concluded with a financial institution.

In addition, the rent cannot represent more than 40% of the tenant's net monthly salary.

The amount of the aid

The guaranteed rent assistance is equal to three months' rent. You will need to apply to this special housing assistance service.

If you are a low-income tenant who has not yet applied for these state-sponsored assistance programs, you should do so. You can still submit an application if you wish. Contact a real estate office; a counselor can answer any questions you have about buying a home and getting a home loan.