Property tax

Last update 13.10.2022

Property tax is an impersonal tax implemented by the communes It is levied on all built or unbuilt real-estate property owned by or natural or legal persons, regardless of:

  • their contributive capacity (i.e. their ability to finance communal expenses);
  • the use that is made of these properties (commercial, private, mixed);
  • the means of financing used to acquire them (own funds or loans).

Each year, property owners receive a property tax statement which indicates:

  • the amount to be paid: and
  • the deadline for paying the tax.

Who is concerned

All natural and legal persons who own a built or unbuilt property on Luxembourg territory. The property tax relates to the property they own on 1 January of the tax year.

Where the property belongs to several persons, they are all jointly and severally liable for payment of the tax.

Construction in progress is not taken into account.

How to proceed

Taxable properties

Taxable properties are divided into 2 categories:

  • category A corresponds to agricultural and forestry properties; and
  • category B corresponds to other properties.

Depending on the commune, category B can be subdivided into up to 6 classes according to their destination:

  • B1 - commercial buildings;
  • B2 - mixed-use buildings;
  • B3 - buildings for other purposes;
  • B4 - single-family houses and apartment buildings;
  • B5 - properties not built on except residential building plots;
  • B6 - residential building plots.

It should be noted that parcels of land forming part of operational assets are also taxable.

The following are exempted from property tax:

  • state and communal property used for public services;
  • property belonging to charitable organisations;
  • Buildings belonging to hospitals and religious orders when used for medical purposes, worship, religious education or for administrative purposes;
  • engineering structures, railway lines and roads and administrative property belonging to the CFL.

How the tax is calculated

Property tax is calculated using the following formula:

Property tax = tax base x communal rate

Tax base

The Luxembourg Inland Revenue (Administration des contributions directes - ACD) identifies and assesses the taxable amount according to the following formula:

Tax base = unit value x assessment rate

Unit value

Assigned by the Service des évaluations immobilières (the property assessment department) of the Luxembourg Inland Revenue (ACD), it classifies buildings based on their use (see above).

The unit value is set based on a statement of rental properties as of 1 January 1941 and indexed at today's values. This rule also applies to all new buildings which are valued at the rentable value they would have achieved as of 1 January 1941, then indexed in order to obtain their current value.

The valuation thus determined is notified by post, in the year following the purchase or the end of construction:

  • to the taxpayer, by means of an 'statement of the unit value and property tax base'; and
  • to the communal authority where the building is located.
Assessment rate

The assessment rate, determined by the legislator, is set based on the nature of the property asset and on its location.  

Communal rate

The communal rate is set by the communal authorities for each calendar year. It differs according to:

  • the place of establishment; and
  • the category of the property (commercial building, building land, apartment building, etc.).

Rates for the various communes are published in the Official Journal, Mémorial B each year.

Property tax simulator (Grondsteier-Rechner)

A bill to reform property tax is currently underway.

This reform creates a new model of land valuation and should apply for the year 2026 at the earliest.

An online property tax simulator has been set up to allow you to estimate the amount of property tax you will have to pay as a result of this reform. It shows the range in which the property tax may fall for a given parcel.

Note:
  • for the time being, this simulator only concerns citizens; and
  • simulations can only be performed for land in the communes where the revision of the general development plan (PAG) has been finalised.

The simulator will be updated as and when required.

Payment of the tax

The owners concerned receive a property tax statement by post from the communal administration. The statement indicates the amount to be paid and the due date.

The frequency of the tax payment varies depending on the amount of tax applicable and is based on the following schedule:

Amount of tax

Payment date(s)

Sum payable
(on each payment date)

less than EUR 55

15 November

annual amount in full

between EUR 55 and EUR 110

15 May and 15 November

half of the annual amount

more than EUR 110

15 February, 15 May, 15 August and 15 November

a quarter of the annual amount

The amount of tax can be deducted from the company's business profit when submitting the income tax return, if the taxed property forms part of its invested net assets.

For any claim concerning:

  • the property tax statement, taxpayers should apply to the board of the mayor and aldermen of the commune where it is due;
  • the tax base statement, taxpayers should apply to the director of the Luxembourg Inland Revenue.

Who to contact

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