Paying the property tax

Last updated more than 5 years ago

Each commune in the Grand Duchy of Luxembourg is authorised to levy a municipal tax (property tax) on immovable property, whether built on or not, situated within the limits of the commune.

Property tax is a tax assessed on property ownership, irrespective of how the property is used (private residence, commercial use, mixed use, etc.) or the sources of the financing used by the taxpayer to acquire it (owned or borrowed capital). The person liable for the property tax for the entire year is the owner of the property (and not the tenant) on 1 January. If the property belongs to several people, they are jointly liable to pay the tax. Each year, a property tax statement is sent to the owner(s), specifying the amount to be paid and the payment schedule.

Who is concerned

Any owner of a building, or of agricultural or forestry land, situated within the limits of a commune in the Grand Duchy of Luxembourg must pay the property tax set by this commune.

When property tax is paid by a farmer, a merchant or a commercial company for a property used in connection with an agricultural or commercial activity, this tax is considered as a business expense and is deductible along with other business expenses. Property tax is deducted from taxable income, under the category of agricultural/forestry profit or industrial and commercial profit, whenever it relates to a property that is part of the invested net assets of an agricultural or forestry undertaking or a commercial enterprise.

Property tax charged on a property asset used for rental income that is part of a taxpayer’s personal investment portfolio is also deductible as an expense for the acquisition of income.

How to proceed

Criteria used to calculate the property tax

The criteria used to set the amount of property tax are:

  • the unit value assigned to the property by the Property Valuation Section of Luxembourg Inland Revenue (Administration des contributions directes – ACD);
  • the multiplier applied for property tax set by each commune;
  • the category of property asset (single-family house, agricultural or forestry land, commercial property, etc.).

In principle, the following criteria have no bearing on the amount of tax due:

  • the owner's family status (married, single, number of children);
  • the owner's income;
  • the owner's occupational status (individual, merchant, commercial enterprise, etc.);
  • the owner's domicile (in the commune where the property is situated; in another commune of the Grand Duchy of Luxembourg or abroad).

Determination of the tax base

The basis for calculating the property tax is called the tax base. It corresponds to the unit value assigned to each property multiplied by the assessment rate.

Establishment of the unit value

All immovable property, whether built on or not, situated within the Grand Duchy of Luxembourg, is assessed for tax purposes. The Property Valuation Section of Luxembourg Inland Revenue (Administration des contributions directes – ACD) classifies all buildings and land depending on their use and then assigns a unit value to each specific property. When a unit value is assigned to a property, a notification is sent to the property’s owner, in the form of a 'unit value and property tax base statement'. This notification is also sent to the tax authorities and to the relevant communal administration. This notification is issued in the year following the purchase, in the case of an existing building, or in the year following the completion of construction, in the case of a new building.

The unit value assigned by the ACD to a given property serves as the tax base, which must be multiplied by the assessment rate.

To establish the unit value, the ACD distinguishes between agricultural or forestry land and other immovable property, whether built on or not. The latter is divided into 6 categories:

  • commercial buildings;
  • mixed-use buildings;
  • buildings for other uses;
  • single-family houses and houses divided into flats;
  • properties not built on, other than residential building plots;
  • residential building plots.

Residential building plots are building plots that have been deemed eligible to receive building permits for at least 3 years and on which construction works have not been launched. It is therefore not necessary for the owner to have already requested a building permit. The commune needs only to have identified the plot as a residential building plot, and to have determined that a building permit may, in theory, be granted.

Each commune must draw up a list of these building plots as at 1 January each year. This list must be sent to the ACD’s Property Valuation Section no later than 31 January of the same year. The list includes certain details relating to the building plots, including: the location of the plot within the commune, the designation of the plot as it appears in the land registry, its area in square metres, the name(s) of the owner(s), and the date of the plot’s classification as a residential building plot.

When a plot is included in this list, the unit value is set at the key date of 1 January or, if applicable, 1 January of a following year. The tax base applicable to the property asset is equal to the unit value multiplied by the assessment rate.

For properties other than residential building plots, the ACD’s Property Valuation Section sets the unit value. Note that the values set are based on the price levels as they existed in 1941. The unit value is therefore lower than the property asset’s actual value.

Establishment of the assessment rate

The assessment rate depends in particular on the type of property asset—agricultural and forestry land, other immovable property (whether built on or not)—and its location. For single-family houses, the rate varies from 0.7 % to 1 %. For residential building plots, the rate is set at 1.5 % for the first 2 years of classification in this category and 10 % from the third year.

Calculation of the property tax

The property tax is calculated by multiplying the tax base by the communal rate.

Each year, the communes set the communal rates for property tax applicable for agricultural and forestry land and for other immovable property, whether built on or not. The tax applying to agricultural and forestry land is known as property tax A, and the tax applying to other immovable property is known as property tax B.

In addition, communes can set different rates for some or all categories of immovable property other than agricultural and forestry land, whether built on or not. The property taxes corresponding to the 6 categories of immovable property other than agricultural and forestry land are as follows:

  • B1, applicable to commercial buildings;
  • B2, applicable to mixed-use buildings;
  • B3, applicable to buildings for other uses;
  • B4, applicable to single-family houses and houses divided into flats;
  • B5, applicable to properties not built on, other than residential building plots;
  • B6, applicable to residential building plots.

By way of example, Luxembourg City’s communal rates for tax year 2013 were as follows:

A

B

B1

B2

B3

B4

B5

B6

500 %

-

750 %

500 %

250 %

250 %

500 %

500 %

The rates applied by the different communes, once approved by the Grand Duchy, are published each year in Mémorial B, the second series of Luxembourg’s official gazette.

Example: a taxpayer has owned a single-family house within the commune of Luxembourg City since 1970. The unit value of this property asset is EUR 4,500. The 2013 property tax is calculated as follows:

Tax base: EUR 4.500 × 1 % (assessment rate) = EUR 45

Property tax: EUR 45 × 250 % (communal rate B4) = EUR 112.50

Payment of the property tax

The commune where the property asset is located sends the owner a property tax statement each year specifying the amount to be paid and the payment schedule. Property tax is payable for the entire year by any taxpayer who was the owner of the property at 1 January of that year.

The quarterly property tax payment dates are usually 15 February, 15 May, 15 August and 15 November. The amount to be paid in each quarter thus corresponds to one-fourth of the total property tax. As an exception to the preceding, the payment dates for property tax are 15 November when the annual amount due is less than EUR 55, and 15 May and 15 November when the annual amount due is greater than EUR 55 and less than EUR 110.

Any claims relating to the information provided on the property tax statement must be submitted to the council of mayors and aldermen of the commune in question. However, any claims relating to the information provided in the tax assessment statement must be submitted to the Director of Luxembourg Inland Revenue.

Forms / Online services

Land register

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Cadastre

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Kataster

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

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