Applying for government aid to finance a rental deposit
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If you wish to rent a property but who do not have the necessary means to finance the rental deposit – a guarantee of solvency or surety – required by the landlord, you may apply for financial aid to finance the deposit.
If you meet all the criteria, the Ministry of Housing and Spatial Planning will stand as guarantor. In return, you will have to commit to saving the total amount of the rental deposit over a period of 3 years. This sum must be repaid to the ministry if the landlord requests the payment of the rental deposit.
You must submit your application to the Single point of contact for housing assistance of the Ministry of Housing and Spatial Planning using a specific form (see 'Forms / Online services').
The eTracking feature for hardcopy (paper) forms is available for this procedure. This feature enables you to stay informed by email and/or by SMS about the advancement of your application.
Who is concerned?
You can apply for state aid to finance the rental deposit if:
- you are of legal age on the date the application is submitted;
- you legally reside on the territory of Luxembourg.
- you are not be the owner, co-owner or usufructuary of, or the holder of an emphyteutic right or right of superficies on any other property, whether in Luxembourg or abroad;
- you have entered into a lease agreement for a dwelling on the private real estate market. The dwelling must be located in Luxembourg and be your principal and permanent place of residence.
Prerequisites
Criteria concerning the rented dwelling
You must enter into a lease agreement for a dwelling:
- that is on the private real estate market;
- that is located in Luxembourg;
- that is your principal and permanent residence;
- the rent of which is set in accordance with applicable legislation on residential leases.
Amount of the rental deposit
The amount of the rental deposit may not exceed 3 months' rent (excluding charges).
Under no circumstances may the rent exceed 50 % of the household income.
Opening a conditional deposit account
You must open a conditional deposit account with a credit institution that has an agreement with the Luxembourg State and you must regularly pay money into the account by standing order until the assets blocked in the deposit account are equivalent to the amount of aid granted.
You have 3 years from the date on which the conditional deposit account is opened to save the equivalent of the amount of aid.
Assets are blocked in your deposit account for the duration of the lease and for a maximum of 6 months after the end of the lease, unless your landlord waives the rental deposit before the end of this period.
The funds in the deposit account cannot be seized.
How to proceed
Filing an application
If you wish to benefit from this aid, you must submit your application to the Single point of contact for housing assistance using a specific form (see 'Forms / Online services').
The completed and signed form can be submitted:
- by post; or
- by depositing the form at their offices; or
- by email to: guichet@ml.etat.lu.
Note: applications submitted electronically will be confirmed by postal mail by the administration.
Supporting documents
The application form must be accompanied by the following documents:
- a copy of your identity document;
- a household composition declaration completed and signed by yourself;
- a statement, drawn up and signed by the credit institution confirming the opening of the conditional deposit account;
- a copy of the standing order for 1/36th of the amount of the rental deposit requested by the landlord;
- a copy of the written residential lease showing the amount of the rental deposit;
- a declaration of honour (French, Pdf, 171 Kb) signed by yourself in which you certify that you own no other property in Luxembourg or abroad. If the application is made by multiple applicants, it is necessary to add a signed declaration of honour for each applicant;
- any documents providing proof of your household income;
- a certificate of affiliation issued by the Joint Social Security Centre (Centre commun de la sécurité sociale – CCSS);
- if you are a foreign national: valid proof of your right of residence.
The ministry may request additional documents or information. In such cases, you must send the documents and/or information to the Single point of contact for housing assistance within 3 months. Should the applicant fail to do so, the file will be closed and the application rejected.
Consideration of income
The granting of financial aid is contingent on the following conditions being satisfied:
- your household income is below the thresholds set by law;
- under no circumstances may the tenant's monthly rent exceed 50 % of the household's monthly net income.
Your household's monthly net income is calculated by taking into account:
- net income, after deduction of social security contributions and actual taxes withheld;
- net parental leave allowance amounts;
- maintenance payments received (maintenance payments paid are deducted from income);
- net accident annuity amounts;
- gross earnings paid for overtime hours.
Financial aid is granted only if you can provide proof of regular income for 3 months at the time the application is submitted.
Granting of aid
If the aid is granted, you will receive a certificate in which the State commits to paying the landlord the amount of the rental deposit in the event of a call on the deposit.
As the applicant, you will receive a copy of this certificate and your landlord will receive the original.
Obligations
As the beneficiary of the aid, you will be required to commit to saving the total amount of the rental deposit over a period of 3 years.
You can apply to the ministry for a temporary exemption from making regular monthly payments. The application must be:
- made in writing;
- justified by reasons of force majeure, health or dire financial circumstances.
You are also required to immediately notify the administration of any changes that could affect the granting, continuation, modification or withdrawal of the aid. If you do not provide this information, you must reimburse the aid with retroactive effect.
Reimbursement
If the landlord applies to the Government for the payment of the rental deposit, the amount of the financial aid will be paid to the landlord.
If yours savings are not sufficient to cover the amount of the rental deposit paid by the State to the landlord, the beneficiary will be required to reimburse the State for the balance due.
Sanctions
Failure to repay the financial aid in accordance with the provisions set by the minister will result in the automatic rejection of any new application for financial aid.
Online services and forms
Who to contact
Single point of contact for housing assistance
-
Ministry of Housing and Spatial Planning Single point of contact for housing assistance
- Address:
- 11, rue de Hollerich L-1741 Luxembourg Luxembourg
- Phone:
-
(+352) 8002 10 10
Telephone: Monday to Friday from 8.00 to 16.00
- Fax:
- (+352) 458 844
- Email address:
- info@ml.etat.lu
- Website:
- http://www.logement.lu
Closed ⋅ Opens Friday at 8.00
- Wednesday:
- 8.00 to 12.00, 13.30 to 16.00
- Thursday:
- Closed
- Friday:
- 8.00 to 12.00, 13.30 to 16.00
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8.00 to 12.00, 13.30 to 16.00
- Tuesday:
- 8.00 to 12.00, 13.30 to 16.00
Thursdays by appointment only
Related procedures and links
Procedures
Links
Legal references
-
Loi du 7 août 2023
relative aux aides individuelles au logement
-
Règlement grand-ducal du 7 août 2023
fixant les modalités d’exécution relatives aux aides individuelles au logement.
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