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If you are involved in a property transaction, it is important to understand the registration and transfer of property rights. These steps play an essential role in the transfer of property and the fulfillment of legal obligations. In this article, we will look in detail at the key aspects of registering and transferring property rights.

## 1. Introduction to the transfer of title
The transfer of real property rights concerns the transfer of ownership of real property. This transfer may be free of charge, e.g. in the case of a donation, or for a fee, e.g. in the case of a sale of real estate. According to the Civil Code, such transfers must be registered in order to be legally valid.

## 2. The importance of the deed of sale
It is important to understand that the preliminary contract of sale has the same legal value as the sale itself. If the agreement contains suspensive conditions, such as the obtaining of a loan or a municipal permit, the sale is concluded when these conditions are fulfilled.

In the case of suspensive conditions, the registration fee is 12 euros, as there is no real transfer of ownership. If, on the other hand, the suspensive conditions are lifted and the sale is completed with the signing of the notarial deed, the proportional registration fee applies. This is 5% plus 2/10 (i.e. 6%) of the sale price. There is also a transfer duty of 1% of the sale price.

In total, the registration and transfer taxes amount to 7% of the sale price. If no real estate agent is involved in the transaction, the documents must be submitted to the tax authorities within 3 months. However, if a real estate agent is involved, this period is reduced to 10 days.

## 3. Registration procedure
The registration must be made at the tax office of the place of residence or at the head office of the real estate agency concerned (e.g. Bureau II for Luxembourg). The buyer is usually responsible for paying the registration fee.

Let's take the example of a sale between Pierre and Emile of a property with a market value of 500,000 euros. In this case, the registration fee is 5% plus 2/10 (i.e. 6%). The registration fee is therefore 30,000 euros. In addition, the mortgage registration duty is 1%, which amounts to 5,000 euros. The total amount to be collected is 35,000 euros.

## 4. Tax credit
A tax credit is available for the purchase of a building intended for residential use.
In the case of the acquisition of a building for residential use, a tax credit (abatement) may be granted on the registration and transfer fees, up to a maximum of 20,000 euros. This application must be made to the notary at the time of the deed. The purchaser must undertake to notify the administration in writing within 3 months of any transfer or change of use of the property. The tax credit must be used for personal purposes.

It should be noted that if Emile claims the tax credit, he will have to pay the difference between the theoretical tax (15,000 euros in this example) and the allowance granted (20,000 euros). If Emile buys jointly with his wife Cecile, the tax will be divided by two, which means that each of them will have to pay 17,500 euros. Emile will therefore have a surplus of 2,500 euros, which he and Cecile can use later.

## 5. Purchase with a view to resale
In the case of a purchase with a view to resale, there is a special rule whereby this intention must be stated in the notarial deed in order to avoid paying the 1% transfer tax. If Emile states that he is buying the property with a view to reselling it, the basic rate of 5% plus 6% will apply. In this example, this would be 36,000 euros.

## 6. Special case: Sale in the future state of completion (VEFA)
In the case of a sale in the future state of completion, registration duty is paid according to the progress of the work. For example, if the building is 40% complete, payment is made for 40% of the total amount.
It should also be noted that in the case of a VEFA, there is no contract of sale, but rather a reservation contract.

## 7. Leasing with rent
In the case of a lease, rents are capitalized at 0.5% plus 2/10. For example, if the lease has a term of 3, 6 or 9 years, with tacit renewal of three years in three years, and the monthly rent is 100 euros, the tax base would be 14,400 euros (12 years * 12 months * 100 euros). The exact calculation of the transfer tax will depend on the applicable rate.

## 8. Right of emphyteusis and legal obligations
The right of emphyteusis corresponds to the annual fees of a real right similar to a property right. It is important to comply with the legal obligations regarding the registration and declaration of this right.

## 9. Legal provisions and obligations of real estate agents
According to the law of 28 January 1948, real estate dealers have specific obligations towards the tax authorities. These include the concealment of sale prices or exchange or sharing balances, as well as the provision of certificates from real estate agents confirming the accuracy of the prices stated in the deeds. Failure to comply with these obligations may result in fines and penalties.
 
## 10. Municipal Surcharge
In some municipalities, such as the City of Luxembourg, a local tax may be levied on the transfer of real estate. These surcharges are generally calculated as a percentage of the registration fees due.

## 11. Exemptions and special cases
There are specific exemptions, e.g. for single-family houses or rental houses classified as such by the tax authorities. In addition, purchases for resale do not qualify for these exemptions. It is important to find out the specific conditions for benefiting from these exemptions.

In conclusion, it is important to understand the registration and transfer procedures of property rights when undertaking a property transaction. These steps can have a significant impact on the costs and legal obligations associated with the transaction. By becoming familiar with these procedures, the parties involved can ensure a legal and transparent property transaction.

**Here are 20 quiz questions with 4 choices and answers:**
1. What is the transfer of a property right?
-    a) The transfer of a mortgage
-    b) The transfer of a property
-    c) Changing the zoning of a property
-    d) The alteration of a lease
   
  **Answer: b) The transfer of a property**
   
2. What is a suspensive condition in the sale of a property?
-    a) A clause allowing the sale price to be revised
-    b) An obligation to carry out work before the sale
-    c) A condition that must be met for the sale to be valid
-    d) A guarantee given by the vendor as to the condition of the property
   
   **Answer: c) A condition that must be met for the sale to be valid.**
   
3. Who is generally responsible for paying the registration fee in a property transaction?
-    a) The seller
-    b) The buyer
-    c) The estate agent
-    d) The notary
   
   **Answer: b) The buyer**
   
4. What is the usual time limit for submitting the registration documents without a real estate agent in Luxembourg?
-    a) 3 months
-    b) 6 months
-    c) 10 days
-    d) 1 year
   
   **Answer: a) 3 months**
   
5. What is a tax credit on the purchase of a property?
-    a) A reduction in property tax
-    b) An amount refunded by the government after the purchase
-    c) A reduction in registration and transfer fees
-    d) An exemption from local taxes
   
   **Answer: c) A reduction in registration and transfer fees**
   
6. What are the conditions to benefit from the tax credit for the purchase of residential property?
-    a) Actual occupation within 2 years
-    b) Actual occupation within 5 years
-    c) Actual occupation within 6 months
-    d) Actual occupation within 10 years
   
   **Answer: a) Actual occupation within 2 years**
   
7. What is the rate of the municipal tax on property transfers in Luxembourg?
- a) 10%
- b) 25%
- c) 50%
- d) 75%
   
   **Answer: c) 50%**
   
8. What are the consequences of the real estate agent's failure to certify the sale price in the deed?
-    a) A reduction in the registration fees
-    b) A fine of between 25 and 1,250 euros
-    c) Cancellation of the sale
-    d) A ban on the estate agent
   
   **Answer: b) A fine of between €25 and €1,250**
   
9. What are the duties of an estate agent in property transactions?
-    a) To declare the transactions to the tax authorities
-    b) To keep registers and send them to the
-  registrars
-    c) Pay a special tax on real estate transactions
-    d) Provide security for the property sold
   
   **Answer: b) Keep records and provide records to registrars**
   
10. What is an acquisition for resale in the context of conveyancing?
-     a) The purchase of a property for long term rental
-     b) Buying a property for quick resale
-     c) Buying a property to be used as a primary residence
-     d) Buying property for commercial purposes
    
    **Answer: b) Buying property for quick resale**
    
11. What is the local tax on property transfers in Luxembourg?
-    a) 25%
-    b) 50%
-    c) 75%
-    d) 100%
   
   **Answer: b) 50%**
   
12. How long does it take to submit the registration documents for a property transaction with an estate agent in Luxembourg?
-    a) 3 days
-    b) 10 days
-    c) 1 month
-    d) 6 months
   
   **Answer: b) 10 days**
   
13. What is a transcription fee in a property transaction?
-    a) A fee charged for audio and video recordings of transactions
-    b) A fee charged for notarized documents relating to the transaction
-    c) A fee charged on property exchanges
-    d) A fee on leases of property
   
   **Answer: b) A fee charged on notarized documents relating to the transaction**
   
14. What are the consequences of concealing the price of a property sale?
-    a) A reduction in the registration fees
-    b) A fine equal to the amount concealed
-    c) Cancellation of the sale
-    d) A ban on selling property in the future
   
   **Answer: b) A fine equal to the amount concealed**
   
15. What is the tax credit for the purchase of a property for residential use?
-    a) 10 000€
-    b) 20 000€
-    c) 30 000€
-    d) 40 000€
   
   **Answer: b) 20 000€**
   
16. What are the duties of a notary in a property transaction?
-    a) Give legal advice to the parties
-    b) Draft the deed of sale
-    c) Explain the relevant articles of the law
-    d) Collect the registration fees
   
   **Answer: c) Explain the relevant sections of the law**
   
17. What is a VEFA in the context of property transactions?
-    a) A sale of property between private individuals
-    b) Sale of a building with bank financing
-    c) A sale of a building in its future state of completion
-    d) A sale of a building with a view to resale
   
   **Answer: c) A sale of a property in its future state of completion**
   
18. What is the minimum period of occupancy required to benefit from the tax credit for the purchase of a property for residential use?
-    a) 6 months
-    b) 1 year
-    c) 2 years
-    d) 5 years
   
   **Answer: c) 2 years**
   
19. What is the effect of a break in occupation of a building within 2 years of purchase?
-    a) An increase in registration fees
-    b) A reduction in registration fees
-    c) A full refund of the reduction granted
-    d) An additional payment of council tax
   
   **Answer: c) A full refund of the discount granted**
   
20. Who is responsible for paying the registration fee for a property transaction in Luxembourg?

-     a) The vendor
-     b) The buyer
-     c) The estate agent
-     d) The notary
    
    **Answer: b) The buyer**


A complete guide to real estate transactions !

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Co-ownership is a complex organization that brings together people with sometimes divergent interests. In order to manage this complexity, the law has created a central actor: the syndic of co-ownership. Its mission, its powers, its responsibilities, the functioning of the general assemblies, the fees, the charges, the accounts, so many points that it is essential to understand in order to live peacefully in a condominium.

## 1. The role of the condominium manager

When the first lot of a building is sold, a community of owners is automatically created. It brings together all the co-owners and has its own legal personality. The syndic of co-ownership, who may be a natural person or a legal entity, is the legal representative of this syndicate. He is responsible for the day-to-day management of the community, the enforcement of the community's rules and regulations, and may enter into contracts and buy or sell property on behalf of the community.

### 1.1 Responsibilities of the community
The community is responsible for insuring the community against risks such as fire, glass breakage, theft and civil liability. The private parts of the property belong to one or more co-owners, while the common parts are owned by the community of co-owners as an undivided whole.

The mandate of the condominium manager is for a maximum period of 3 years, renewable after a vote at a general assembly. His duties include the application of the community rules, the maintenance of the list of community members, the execution of the decisions of the general assembly, the day-to-day management, the intervention in the event of urgent works, the drawing up of the budget and the accounts, and the provision of advice to the community members.

The co-ownership syndic is remunerated on the basis of a fee per thousandth of each lot and must have a property management license issued by the Ministry of the Middle Classes. The condominium manager must also have professional indemnity insurance.

### 1.2 Trade union council
A union council, made up of a president and two members, is not compulsory but can be set up by a vote at the general meeting. The common facilities refer to those facilities whose ownership is undivided between certain co-owners, according to their respective usefulness for each lot.

## 2. Monthly advances and fees
Monthly advances and fees shall be decided by the general assembly by simple majority. The collection of fees does not require the approval of the general assembly. The trustee may collect by means such as the statement of account, reminders, formal notices, payment orders, the intervention of a lawyer or a court summons. It should be noted that the vendor and the purchaser are jointly and severally liable for the payment of the charges. Furthermore, the syndic does not need the approval of the general assembly to carry out urgent work.

## 3. Annual report and accounts
An annual report and accounts shall be presented at the annual general meeting. Contracts and invoices shall be drawn up in the name of the community. The distribution of expenses among the co-owners shall be in accordance with the co-ownership rules. The community does not issue statements to the tenants.

## 4. Current account
Each condominium must have at least one current account. The manager may choose the bank, but it is preferable to obtain the approval of the general assembly. The manager has power of attorney over the current accounts, which is mandatory.

## 5. Reserve Fund and Working Capital/Cash Fund
The reserve fund is used to finance any major works that may be required in the future. It is not returned when a lot is sold. Its amount, increase and replenishment are decided at the General Assembly by a simple majority. The General Assembly decides whether and how much to pay during construction.

The working capital or cash fund must be returned to the owners when a lot is sold. It is used to feed the current accounts and acts as a sort of "credit line". Its amount, increase and repayment shall be decided by simple majority at the General Assembly.

## 6. Tenant and transfer

The owner may recover from his tenant the costs of maintenance, minor works, energy and refuse disposal. In the event of transfer of ownership, the syndic must be informed.

## 6. Tenant and transfer
The owner may recover from the tenant the costs of maintenance, minor works, energy and rubbish collection. In the event of transfer of ownership, the syndic must be informed.

## 7. Vertical cadastral
The vertical cadastral is obligatory for the notarial act.

## 8. The General Assembly
The general assembly is the decision-making body of the condominium. It is held at least once a year and it is during this meeting that the majority of decisions concerning the management of the property are taken. It is therefore essential to understand how the general assembly works.

### 8.1. Stages of the general assembly
**- Establishment of the accounts:** once a year, legal obligation.

**- Letter of convocation:** a letter of convocation indicating the date, time and place of the general assembly, accompanied by the proxies and the agenda. All the co-owners must be convened, without exception. The convocation is generally sent by registered mail with a delay of 15 calendar days.

**- Holding of the general assembly:** a president presides over the meeting, a secretary writes the minutes and two scrutineers count the thousandths and verify the list of attendees and proxies, as well as the results of the votes.

**- Report of the general assembly:** the opposing and absent co-owners may contest one or more decisions taken during the general assembly through the appropriate legal channels.

### 8.2. Respect of time limits
Notice of a General Meeting must be given at least 15 days before the date of the meeting. An item must be added to the agenda within 6 days of the convocation. A decision taken by the General Assembly must be challenged within 2 months of the date on which the minutes of the General Assembly are sent. There is no specific time limit for sending the minutes.

### 8.3. Majorities in joint ownership
Decisions taken at general meetings are subject to majority voting rules. These rules vary according to the importance of the decision to be taken. Majorities in condominiums can be divided into several categories:

#### 8.3.1. Simple or relative majority
Approved if more than 300/1000 of those present and represented at the general assembly vote in favor. It is used to approve the accounts, the annual budget, the monthly advances, the discharge to the administrator, the discharge to the union council, the reserve fund, the working capital, the maintenance work and/or the repair of cracked or broken façades (new plaster/painting of the façade).

#### 8.3.2. Absolute majority
Passed if more than 500/1000 votes in favor, counting to the nearest thousandth. May require a second General Assembly if the quorum is not reached at the first, then a simple majority is required. It is used for the delegation of powers, which requires a simple majority, the appointment/dismissal of the trustee, the appointment/dismissal of the trade union council, the authorization of certain co-owners, the maintenance and improvement of a cracked façade and a poor CPE (Energy Performance Certificate) for two new insulating facades.
#### 8.3.3. Majority of % or double majority
Requires at least 750/1000 of all unit owners and a majority of all unit owners. Applies to acts of sale, acquisition of property (e.g. rental of a communal garden), amendment of the community statutes, administrative acts (e.g. renovation of the facade, insulation of the roof).

The co-owner's representative is a key player in the good management of the co-ownership. His role is complex and requires a thorough knowledge of the law of joint ownership. As a co-owner, it is important to understand his role and his responsibilities in order to be able to correctly follow the evolution of your co-ownership.

Understanding the role of the syndic of co-ownership: a complete guide

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Luxembourg, a small country in the heart of Europe, is surrounded by three neighboring countries: Belgium, France and Germany. If you are considering moving to a city close to Luxembourg to take advantage of its economic, social and cultural benefits, here is a list of the 6 largest cities closest to Luxembourg to help you make your choice.

## Belgium (Wallonia)
Arlon and Virton are two Walloon cities close to Luxembourg. Arlon, the closest, is only 24 km away from Luxembourg City, while Virton is about 50 km away. These cities offer easy access to Luxembourg and allow you to take advantage of cross-border economic and professional opportunities.

## France (Grand Est)
The Grand Est region is home to several French cities close to Luxembourg. Thionville, Metz and Longwy are the closest, while Nancy is a little further away. These French cities offer an excellent quality of life with easy access to services and jobs in Luxembourg.

## Germany (Saarland)
Saarland, a German state neighboring Luxembourg, has several cities close to the Grand Duchy, including Perl, Saarburg, Merzig and Saarlouis. These German cities are ideally located for people working in Luxembourg or wishing to take advantage of the region's economic benefits.

## Germany (Rhineland-Palatinate)
Rheinland-Pfalz, another German region close to Luxembourg, also offers many opportunities for those wishing to relocate close to the Grand Duchy. Trier, Bitburg and Wittlich are some of the closest cities, offering a good quality of life and easy access to Luxembourg.

## Germany (North Rhine-Westphalia) and the Netherlands
For those wishing to move further away from Luxembourg, cities such as Aachen in Germany or Maastricht in the Netherlands also offer interesting opportunities.

## Belgium (Flanders and Brussels)
Finally, Flanders and the Brussels-Capital region in Belgium also offer interesting cities close to Luxembourg, such as Leuven and Brussels.

The list of the 6 cities closest to Luxembourg gives you an overview of the options available if you are considering moving to a neighboring country. Each city has its own advantages and characteristics, so it is important to consider your personal needs and priorities before making a decision. Feel free to visit these cities and learn about the opportunities they offer to find the perfect destination for you and your family.

6 cities closest to Luxembourg: where to live in the neighboring countries?

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Buying your first home can be both exciting and stressful. To help you succeed with your first property purchase, we have put together the 10 most common pitfalls to avoid during this important step in your life. With the help of [Nextimmo.lu](https://nextimmo.lu/en), a hybrid real estate agency in Luxembourg, you will be able to successfully go through this process and realize a safe and profitable investment.

## 1. Do not set your budget before you start looking
Before you start your search, it is crucial to determine how much you can afford to spend on your future home. If you ignore this step, you risk wasting time and energy looking at properties that are out of your budget. Work out your finances, taking into account your income and expenditure, and don't forget to include additional costs such as taxes, notary fees and maintenance charges.

## 2. Neglecting to inspect the property
A thorough inspection of the property is essential before making a purchase decision. Don't be seduced by the exterior of a house or apartment without carefully checking its structural condition, electrical installations, plumbing, etc. Hiring a professional to carry out a thorough inspection will help you avoid unpleasant surprises after the purchase.

## 3. Not considering the location
Location is an important factor to consider when buying a property. Don't forget to consider the proximity of public transport, schools, shops and green spaces. A location that suits your needs can have a significant impact on your quality of life and the resale value of your property.

## 4. Ignore additional costs
When buying a property, there are many additional costs to consider in addition to the purchase price. These include notary fees, taxes, moving costs and any renovations that may be required. Make sure you include all these costs in your budget to avoid any unpleasant surprises.

## 5. Rushing into a decision
Buying a house or an apartment is an important decision that should not be taken lightly. Take your time to visit several properties, weigh the pros and cons of each option and consult with property experts like the [Nextimmo.lu](https://nextimmo.lu/en) team before making a decision.

## 6. Do not negotiate the price
Do not hesitate to negotiate the price of your future home. Sellers are often willing to discuss and make concessions to complete the sale. Let a real estate professional like [Nextimmo.lu](https://nextimmo.lu/en) help you with this crucial step.

## 7. Not being accompanied by a professional
Calling upon a real estate professional, like [Nextimmo.lu](https://nextimmo.lu/en), can help you avoid many pitfalls and make informed decisions. An experienced real estate agent can guide you through the entire buying process, from researching and negotiating the price to handling the paperwork.

## 8. Not checking the legal status of the property
It is important to check the legal status of the property you are considering buying, especially with regard to easements, mortgages and planning permission. A notary or professional estate agent will be able to provide you with all the necessary information and ensure that you buy a property without any legal problems.

## 9. Do not have an emergency fund
Buying a property often involves unexpected expenses, such as repairs or renovations. Set aside an emergency fund to cover these expenses and avoid getting into financial difficulties.

## 10. Not considering future needs
When buying your first property, it is important to think long-term and consider your future needs. For example, if you plan to expand your family, make sure the property you buy has enough space to accommodate everyone.

By avoiding these 10 common pitfalls, you'll be better prepared to succeed in your first property purchase. Don't hesitate to call on the [Nextimmo.lu](https://nextimmo.lu/en) team to guide you through this adventure and ensure you make the best decisions for your future home. Visit the [Nextimmo.lu](https://nextimmo.lu/en) website now and discover the available properties that suit your needs and budget. Enjoy your search!

10 pitfalls to avoid when buying your first property !

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Discover the best property platforms and the hybrid agency [Nextimmo.lu](https://nextimmo.lu/en) !

Finding a property in Luxembourg can be a complex process, given the variety of properties available and the many factors to consider. To help you navigate this universe, we present the best real estate platforms in Luxembourg, as well as [Nextimmo.lu](https://nextimmo.lu/en), a hybrid real estate agency that deserves your attention. Whether you are looking to buy, sell or rent, these resources will provide you with an excellent starting point for finding the perfect property.

## 1. Athome.lu
[Athome.lu](https://www.athome.lu/en) is one of the most important property platforms in Luxembourg. This online platform allows individuals to place real estate ads to sell or rent their property and offers an advanced search function to help users find properties that match their criteria. The site is simple and easy to use, making it an excellent starting point for your property search.

## 2. Immotop.lu
[Immotop.lu](https://www.immotop.lu/) is another online property platform in Luxembourg that allows sellers and landlords to market their properties online. With a wide range of residential and commercial properties, as well as information on the different regions and neighborhoods of Luxembourg, [Immotop.lu](https://www.immotop.lu/) is one of the most visited real estate sites in Luxembourg and offers a simple and user-friendly way to search and find properties online.

## 3. Wortimmo.lu
[Wortimmo.lu](https://www.wortimmo.lu/en) is an online property platform that is part of the "Luxemburger Wort" group, one of the largest daily newspapers in Luxembourg. The platform offers a wide range of residential and commercial properties for sale or rent, as well as information on the different regions and districts of Luxembourg. [Wortimmo.lu](https://www.wortimmo.lu/en) is one of the most visited real estate websites in Luxembourg and offers a simple and user-friendly way to search and find real estate online.

## 4. Nextimmo.lu: The hybrid estate agency
[Nextimmo.lu](https://nextimmo.lu/en) differs from other real estate platforms because of its hybrid approach, combining the advantages of traditional real estate agencies and online platforms. This hybrid real estate agency offers a wide range of properties for sale or rent, with advanced search features to help you find the perfect property.

In addition to offering online listings, [Nextimmo.lu](https://nextimmo.lu/en) provides a team of professional and experienced real estate agents to assist you throughout the buying, selling or renting process. Thanks to their local expertise and in-depth knowledge of the Luxembourg property market, [Nextimmo.lu](https://nextimmo.lu/en) agents can provide you with personalized advice and help you make informed decisions.

Whether you are looking for an apartment, house or commercial space, [Nextimmo.lu](https://nextimmo.lu/en) is a valuable resource for your property search. By choosing a hybrid real estate agency like [Nextimmo.lu](https://nextimmo.lu/en), you benefit from both the convenience of online platforms and the professional guidance of real estate agents.

It is essential to consult several platforms to get a complete picture of the properties available on the market. Each of these sites offers a unique user experience and different options to help you find the perfect property. Feel free to explore [Athome.lu](https://www.athome.lu/en), [Immotop.lu](https://www.immotop.lu/), [Wortimmo.lu](https://www.wortimmo.lu/en) and [Nextimmo.lu](https://nextimmo.lu/en) to find the property that best suits your needs and budget in Luxembourg. In particular, the hybrid real estate agency [Nextimmo.lu](https://nextimmo.lu/en) offers you the best of both worlds, combining the ease of use of online platforms with the professional expertise of real estate agents. Happy searching!

How to find a property in Luxembourg ? 

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In Luxembourg, the taxation of capital gains on real estate depends on the type of property sold and the period between purchase and sale. In this article, we will discuss the main rules regarding the taxation of capital gains on real estate, in particular for principal residences and other properties.

## Principal residence exemption

The sale or exchange of a principal residence in Luxembourg is exempt from capital gains tax if certain conditions are met. A taxpayer's residence is considered to be a principal residence if :

- The residence is occupied by the taxpayer at the time of the sale or exchange, or the sale or exchange takes place no later than 31 December of the year following the move.
- The taxpayer has lived in the home since its purchase or completion, or for at least 5 years prior to the sale or exchange.
- The sale or exchange was made for family or professional reasons of the taxpayer, their spouse or partner.

## Taxation of property sold less than two years after purchase

If the sale or exchange of the property takes place less than two years after its acquisition, the income realized is called speculative profit. This gain is taxed according to the taxpayer's annual taxable income and family situation, with a marginal tax rate of up to 42%.

## Taxation of property sold more than two years after purchase

If the sale or exchange of the property takes place more than two years after its acquisition, the income realized is called capital gain and is taxed at 21%, which is half the global rate.

The capital gain income is subject to a ten-year tax-free allowance of 50,000 euros (100,000 euros if the spouse or partner is taxed jointly).

Understanding the taxation of capital gains on property in Luxembourg is essential for owners considering selling their property. The tax rules vary depending on the type of property and the period between purchase and sale. It is always advisable to consult a professional for personalized advice on your tax situation.

Taxation of capital gains on real estate in Luxembourg: all you need to know

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The calculations used to determine capital gains on real estate in Luxembourg vary according to the length of time the property has been held and the type of gain (speculative or capital gain). Here is a summary of the calculations for each situation:

## 1. Property sold less than 2 years after purchase (speculative gain):

**Profit = sale price - (purchase price + purchase costs)**

Acquisition costs generally include estate agent's commission and the cost of obtaining an energy certificate.

## 2. Properties sold more than 2 years after purchase (transfer profit):

### a) For a purchase against payment:

**Income = sale price - (revalued purchase price + acquisition costs)**

The purchase price is revalued by applying a coefficient corresponding to the year in which the expenditure was incurred. Capital expenditure includes major expenditure that has increased the value of the property or changed its nature.

### b) In the case of acquisition free of charge (inheritance):

**Income = transfer price - (revalued acquisition price + acquisition costs)**

The purchase price is that paid by the previous owner, revalued in accordance with the conditions described above. Any inheritance tax paid is not taken into account when determining the purchase price.

Please note that these calculations are simplified and that it is always advisable to consult a professional for personalized advice on your tax situation.

Guide to calculating property gains in Luxembourg 

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In Luxembourg, the sale of a property generally results in taxation of the capital gain realized. However, there are some exceptions. In this article, we will examine the different situations of property sales and the tax rules applicable to each of them.

## Principal residence exemption

Capital gains realized on the sale of a principal residence are generally exempt from tax. This exemption depends on the occupation of the property at the time of the sale and the reasons for the sale (imperative family or professional reasons). It is important to note that the principal residence is not necessarily the tax residence.

## Taxation of other properties

If you sell a property other than your main residence, the capital gain is taxable, with some exceptions. The taxation system varies according to the length of time the property has been held and the nature of the gain (speculative or sale).

## Properties sold less than 2 years after purchase

Capital gains on the sale of a property acquired less than 2 years previously are subject to income tax. The gain is calculated by deducting the purchase price and the costs of acquiring the property from the sale price. It is taxed at the normal rate.

## Property sold more than 2 years after purchase

Capital gains from the sale of a property acquired more than 2 years ago are subject to a different tax regime. The gain is calculated by deducting from the sale price the revalued purchase price and the costs of acquisition. It is taxed at half the global rate.

## Deductions

Taxpayers are entitled to a deduction of 50,000 euros over a period of 10 years, which is doubled in the case of collective taxation. An additional deduction of 75,000 euros is granted in the case of the transfer of inherited property.

## Tax year

The tax year for capital gains on real estate is the year of transfer, regardless of the date of payment of the price. Capital losses or losses on disposal can be offset against income in the same category, but cannot be carried forward or offset against income in another category.

In conclusion, it is essential to understand the different tax rules applicable to the sale of real estate in Luxembourg. The calculation methods and exemption criteria vary according to the situation, so it is important to be informed and, if necessary, to consult a professional.

Capital gains tax in Luxembourg: calculation methods and exemption criteria

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Selling a property off-market is an alternative approach to selling on traditional property platforms. This method has advantages for both sellers and buyers, particularly in terms of exclusivity and confidentiality. In this article, we will explore the reasons why an off-market sale can be an interesting option for selling a property.

## 1. Exclusivity and confidentiality
One of the main advantages of an off-market sale is the confidentiality it offers. By removing your property from traditional property platforms, you make it less visible and more exclusive, which can be particularly appealing for high-end properties or sellers who want to preserve their anonymity.

## 2. Control the sale price
Selling your property off-market gives you more control over the sale price. You can set a competitive price without worrying that your listing will be drowned out by other listings on traditional property platforms. It can also give you the opportunity to negotiate directly with potential buyers, without intermediaries.

## 3. Better selection of buyers
Selling off-market allows you to better target potential buyers. By targeting only serious and creditworthy buyers, you avoid wasting time on inadequate or inflated offers, which can speed up the selling process.

## 4. Reduce the competition
By selling your property off-market, you avoid competing directly with other similar properties on traditional property platforms. This can help your property stand out and attract more attention from potential buyers.

Do you want to sell your property off-market and enjoy all the advantages mentioned above? Register now on [Secretimmo.lu](https://secretimmo.lu/en), an innovative platform that will help you sell your property in complete confidentiality and efficiency. Thanks to our exclusive network of potential buyers and real estate agents, we will assist you in selling your property "off market" and offer you a personalized service adapted to your needs.

Off-market sales offer several advantages to sellers, particularly in terms of exclusivity, control over the sale price and choice of buyers. This approach can be particularly interesting for high value properties or for sellers who wish to preserve their anonymity. By registering with [Secretimmo.lu](https://secretimmo.lu/en) you will benefit from an exclusive network and expertise to help you sell your property in complete confidentiality. Don't let your property get lost among the thousands of online ads, discover the advantages of selling off-market with [Secretimmo.lu](https://secretimmo.lu/en).

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