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Subsidies for renters in Luxembourg

Whitney leaning against a railing on a downtown street

In Luxembourg, people who wish to rent an apartment or a house have the possibility to receive financial aid from the State in order to realize their project. At a time when it is difficult to find suitable housing, when the real estate market is tight and demand often exceeds supply, subsidies can be an important tool to convince the landlord and maintain financial flexibility.

2 Financial instruments: State aid to provide a rent guarantee and a rent subsidy as monthly assistance.

When entering into a rental agreement, the tenant must pay a rent guarantee to the landlord. This can be up to three months' rent. The landlord wants to protect himself against potential damage to the property and against additional costs if the tenant's consumption is higher than the reduction in charges.

If you have difficulties in raising this amount, you can apply for financial assistance from the Luxembourg government. To do this, fill in the official application form for financial aid from the state and send it to the one-stop shop for housing aid.

However, you can only obtain this aid if you have concluded a rental contract that complies with Luxembourg law. In addition, the accommodation must be on the private property market and serve as the tenant's permanent main residence.

To be eligible for financial aid, you must not be the owner, co-owner, usufructuary, emphyteutic lessee or holder of a right of emphyteusis of another property in Luxembourg or abroad.

The state aid for the rental guarantee is reserved for adults who open a conditional deposit account with a credit institution. In addition, the condition is that the rent does not exceed 40% of the monthly income and that the monthly income of the tenant is below a defined ceiling.

State assistance in providing a rental guarantee is a one-time payment that is received only after the contract is signed. But there is also a way to save money on rent throughout the year: the so-called rent allowance.

This is between 130 and 300 € per month and is calculated according to the income and composition of the household. The money paid each month is intended to give the recipients more purchasing power.

People who wish to receive this monthly subsidy must rent a private home that meets the health and safety standards in force in Luxembourg. In addition, the housing must not be rented to the applicant household by a direct relative. As for the rent guarantee, the rule is the same: The applicant household must not be the owner, co-owner, usufructuary, emphyteutic owner or holder of a right of emphyteusis for another dwelling in Luxembourg or abroad.

If you wish to receive rental assistance in Luxembourg, the rental contract you signed must comply with the legal requirements of the Grand Duchy. The monthly rent must represent at least 25% of your monthly net family income. You can only apply for the assistance if you have had a regular income for more than three months.

You can also apply for the rent subsidy at the one-stop shop for housing subsidies. Do not hesitate to apply as soon as you have found a suitable accommodation. The rental subsidy covers the costs you incur when you sign the contract, while the rental allowance relieves you of the payment of the rent month after month - from the date you move in.