Luxembourg City real estate market — prices, rental yield and trend

• Gross rental yield: 3.64%
• Net rental yield: 3.56%
• Transaction cost: 9%
• Price basis: local-market average

Luxembourg City is one of the 314 property markets Glopra tracks.

What a buyer pays in Luxembourg City

Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 9% of the price here. That is close to the 9.6% median across the set. Of that, the transfer tax alone is 7–10% depending on the buyer and the property; the rest is notary, registration and agency fees.

What it earns

The typical home here lets for about $3,026 a month against a purchase price of $997,512, which is 3.6% gross before tax. Neither figure is quoted per square metre in this market, but both come from the same source, so the ratio between them holds. It ranks 265th of 311 markets by gross yield. Rental income is taxed at 2.2–23.3% — the rate is not a single number here. That is the difference between 2.8% and 3.6% net on the same property. The 3.6% net figure we publish uses 2.2%. On the way out there is a third tax: a non-resident seller pays 21–42% on the gain, depending on how long the property was held and who is selling.

How the tax works. Net rental income (after itemised expenses, or a 35% standard deduction capped at EUR 2,700 for qualifying older buildings) is taxed at progressive income-tax rates (0-42% for class 1) plus solidarity surcharge and 1.4% long-term care contribution. Global Property Guide's examples give effective rates of 2.2% at EUR 18,000 gross a year and 23.3% at EUR 72,000. Source: Global Property Guide Luxembourg taxes and costs (last update Sep 2026).

How this figure is built

The price figure for Luxembourg City is built from asking prices from listings. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way, which is what lets Luxembourg City be compared with a country average or another city.

Sources: Global Property Guide Luxembourg rental yields (Luxembourg all locations, 2-bedroom, Oct 2026) [https://www.globalpropertyguide.com/europe/luxembourg/rental-yields]; Observatoire 'Loyers annoncés en 2025' (city rent, not paired) [https://gouvernement.lu/dam-assets/images-documents/actualites/2026/09-septembre/30-observatoire-habitat/rapport-loyers-annoncs-en-2025.pdf]; tax/ownership/transaction cost from the new luxembourg row. Snapshot: 2026-10-17.