How much do you pay to buy a property in Luxembourg?

There is no single minimum income required to buy a property in Luxembourg. The budget depends on your income, your outgoings, your deposit and the terms of the mortgage. As a guide, with €6,000 net per month, a household with no other loans can borrow around €509,000 to €572,000 over 30 years at 3.90% %.

What salary do you need to buy a property?

The salary to buy depends mainly on the amount you wish to borrow and the monthly repayment your household can afford.

The following table provides some figures to give an idea of the scale. It is based on a loan of 30 years at 3.90 % and with a monthly repayment amounting to 40 to 45 % of the household’s net income.

These simulations are for illustrative purposes only. They assume there are no other loans and do not take into account insurance or all project-related costs. The ratio of 40 to 45 % is a simulation assumption, not a rule that applies equally to all banks.

The income shown corresponds to the total net household income. For a couple taking out a loan together, both individuals’ incomes may therefore be taken into account in the calculation.

How does the bank calculate your borrowing capacity?

Your borrowing capacity does not depend solely on your salary. The bank assesses your overall financial situation.

In particular, it takes into account:

• your regular income; ;
• your outstanding loans; ;
• your other expenses; ;
• your personal contribution; ;
• the term of the loan; ;
• the interest rate; ;
• your ability to maintain a sufficient budget after repayment.

Consequently, two households each earning €6,000 net may end up with very different outcomes.

A car loan or a personal loan, for example, reduces the amount available for your mortgage each month. Conversely, a larger deposit reduces the amount that needs to be financed.

A European simulation gives you a rough idea before you start visiting.

How do interest rates affect the required salary?

The higher the interest rate, the higher the monthly repayment for the same loan amount. Your purchasing power may therefore change even if your salary remains the same.

In August 2026, the indicative property rates recorded were as follows:

These rates are for guidance only. The actual rate offered will depend on the application, the project, the deposit and the bank.

This is why a budget estimate drawn up several months earlier may become out of date. Even a small change in interest rates can affect the amount available.

What role does the personal contribution play?

A deposit reduces the amount you need to borrow. It can therefore make it easier to secure financing or enable you to buy a more expensive property whilst keeping your monthly repayments the same.

Let’s find a place to live in 600 000 €. With a deposit of €60,000 applied towards the purchase price, the remaining amount to be financed falls to €540,000, excluding fees.

For a first-time buyer purchasing their main residence, the regulations allow the loan-to-value ratio to be up to 100 %. However, this is an upper limit. A bank may apply more conservative criteria and require capital.

You should also set aside some savings to cover purchase-related costs and avoid using up all your cash. A property purchase continues to incur expenses even after the keys have been handed over.

Under certain conditions, financial assistance may also be available to help people get on the property ladder. In particular, the home-buyer’s grant may vary from €500 to €10,000, depending on income and household composition.

Is it possible to buy a property on a more limited income?

Yes. Salaries cannot always be increased, but various aspects of the project can be adjusted.

The first lever is the localisation. Prices vary considerably depending on the municipality and the distance from Luxembourg City.

The type of property also plays a role. A smaller flat, an older property or a property in need of renovation may suit a different budget.

Finally, weigh up your priorities:

• surface; ;
• number of bedrooms; ;
• location; ;
• journey time; ;
• transport; ;
• condition of the property; ;
• future needs.

In the second quarter of 2026, advertised prices varied across different segments. Prices for older flats fell by 1.4 % over one quarter, whilst new-build flats remained virtually unchanged at +0,1 %. Older properties rose by 2,7 %.

Above all, these figures show that there is no single «Luxembourg property market». The budget required depends very much on the type of property you are looking for.

How should you plan your budget before you start viewing properties?

Setting your budget before viewing properties allows you to focus your search on homes that are actually within your means.

Start with these three steps:

1. Calculate your borrowing capacity taking into account your income and your loans.
2. Determine the available nutrient supply, not forgetting the costs and a contingency fund.
3. Set a realistic maximum budget for your property search.

An online estimate provides an initial guide. For a project at an advanced stage, a bespoke analysis can then take your specific circumstances and banking conditions into account more accurately.

You can also take a look at our guide from your first property purchase to help you prepare for the next stages of your project.

Frequently asked questions about the salary required to buy

Do outstanding loans reduce borrowing capacity?

Yes. The monthly repayments on your existing loans reduce the amount of disposable income available for a mortgage. A car loan or consumer credit can therefore significantly reduce your borrowing capacity. The bank looks at your overall level of outgoings, not just your salary.

Can a couple combine their incomes to take out a loan?

Yes. When two people take out a loan together, the household’s income may be taken into account in the calculation. Both joint and individual expenses are also assessed. A couple with two incomes may therefore have a higher borrowing capacity than a single borrower in a comparable situation.

Does the 13th month’s salary count towards borrowing capacity?

Additional income may be taken into account provided it is regular and can be adequately substantiated. However, whether a 13th month’s salary, a bonus or a payment is taken into account depends on the bank and how consistent it is over time. It is best to provide details of all your income when your application is being assessed.

Is a deposit compulsory when buying a first home?

Not necessarily in the same proportions for all applications. The regulations allow financing of up to 100 % of the property’s value for a first-time buyer of their main residence. However, this does not oblige any bank to finance 100 % of the project. Purchase costs and the borrower’s financial situation must also be taken into account.