State aid to finance a rental deposit

Last update

Summary:

You can apply for state aid to finance a rental deposit subject to certain conditions.

If you wish to rent a property but 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 said 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 using a specific form (see 'Online services and forms').

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.

Before signing a lease agreement, you can request a certificate from the ministry specifying the conditions under which you are eligible for the aid. This certificate, valid for a period of 3 months, shows the maximum rent and rental deposit amounts, determined on the basis of your income and the composition of your household.

Who is concerned?

You can apply for state aid to finance the rental deposit if you:

  • are a natural person of legal age on the date the application is submitted;
  • benefit from a right to stay in Luxembourg for more than 3 months and are listed on the National Registry of Natural Persons;
  • are not the owner of a home in Luxembourg or abroad;
  • have had regular income for at least 3 months at the time of the application.

Prerequisites

Conditions relating to the rented dwelling

The lease agreement must relate to a dwelling on the private real estate market:

  • that is located in Luxembourg;
  • that is not made available by either your father, your mother or a public body (Housing Fund (Fonds du Logement), National Affordable Housing Company (Société nationale des habitations à bon marché - SNHBM), communal administration, social welfare office, non-profit association, etc);
  • that is your principal and permanent residence;
  • the rent of which is set in accordance with applicable legislation on residential leases.

Conditions relating to the rent and rental deposit amounts

The amount of the rental deposit may not exceed 3 months' rent (excluding charges).

The rent (excluding charges) may under no circumstances exceed 50 % of your household's 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 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 in favour of the State 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 are unseizable.

Conditions relating to income  

Your household's income must be lower than the statutory limit.

The income taken into account corresponds to the average net income of the previous calendar year. If the total income to be taken into account includes income originating from remunerated work that was only engaged in for part of the calendar year in question, such income is to be extrapolated over a whole year.

The last known income is taken into account and extrapolated over the year in the following events:

  • a change of employer:
  • an amendment to the employment contract having an impact on the income;
  • absence of professional income during the year in question.

The household's monthly net income is calculated by taking into account:

  • net income within the meaning of the income tax provisions, after deduction of social security contributions and actual taxes withheld (e.g. income from paid employment or old-age pension, unemployment benefits, parental leave allowance, REVIS, RPGH, etc.);
  • the maintenance payments received;
  • net accident annuity amounts;
  • gross earnings paid for overtime hours.

Maintenance payments made by you (for example for your children or to a divorced spouse) are deducted from the income.

Income from dependent children is not taken into account.

Social benefits are not taken into account to determine your household's net income, such as:

  • family allowance;
  • back-to-school allowance;
  • cost-of-living allowance.

Note: the above list is indicative only. The legal and regulatory provisions prevail.

You can also consult the rental deposit simulator to find out whether you are entitled to receive state aid to finance a rental deposit.

How to proceed

Submitting the application

If you wish to benefit from state aid to finance a rental deposit, you must submit your application to the Single point of contact for housing assistance using a specific form (see 'Online services and forms').

The completed and signed form along with all necessary supporting documents can be submitted to the Single point of contact for housing assistance:

  • by post; or
  • by depositing the form at their offices.

Note: applications submitted electronically (using the email address guichet@ml.etat.lu) must be confirmed by postal mail to the administration.

Supporting documents

You must attach the following documents to the application form:

  • a copy of your identity document;
  • a declaration concerning the composition of your household (see form L/A21 under 'Online services and forms'), filled in and signed by you;
  • a declaration of honour (see form L92 under 'Online services and forms') signed by yourself certifying that you don't own any home in Luxembourg or abroad. If the application is made by multiple applicants, you must add an individually signed declaration of honour for each applicant;
  • a certificate of affiliation to the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS) for each member of the household;
  • for third country nationals (including British nationals): a document proving your right to stay in Luxembourg;
  • documents providing proof of your income and that of the other household members;
  • a copy of the residential lease (if it has already been signed) showing the amount of the rental deposit required;
  • 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.

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. If you fail to reply to the request or if you reply after the deadline, your file will be closed and your request rejected.

Family status

The family status to be taken into account is that existing on the date of the decision to grant the aid.

For the purposes of the law, 'dependent' child should be taken to mean:

  • any child for whom you receive a family allowance, who lives with you in the home and is registered there;
  • any child up to the age of 27, who lives with you in the home, is registered there and is co-insured in your health insurance scheme.

Granting of aid

If the application is granted, the landlord will receive the original certificate stating that the State pays to him, upon first request from him, the amount of the rental deposit required.

As the tenant eligible for the aid, you will receive a copy of the said certificate.

Obligations

As the beneficiary of the aid to finance the rental deposit, 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. This application must be:

  • made in writing; and
  • 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.

Reimbursement

If the landlord requests the payment of the rental deposit, the amount of the financial aid will be paid to the landlord by the State.

The funds saved on the conditional deposit account will then be transferred by the financial institution to the State.

If the amount held in the conditional deposit account is not sufficient to cover the amount of the rental deposit advanced by the State, you will be required to reimburse the State for the balance due.

Sanctions

Failure to repay the financial aid on the date set by the ministry will result in the automatic rejection of any new application for said aid.

Combination with other types of aid

State aid to finance a rental deposit may be combined with the rent subsidy.

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
    Email address:
    info@ml.etat.lu
    Open Closes at 12.00
    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

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
    Email address:
    info@ml.etat.lu
    Open Closes at 12.00
    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

Further information

Legal references

Your opinion matters to us

Tell us what you think of this page. You can leave us your feedback on how to improve this page. You will not receive a reply to your feedback. Please use the contact form for any specific questions you might have.

Fields marked with an asterisk (*) are mandatory.

Did you find what you were looking for?*
How would you rate this page?*
Very poor
Very good

Leave a comment to help us improve this page. Do not provide any personal information such as your email address, name, telephone number, etc.

0/1000

Please rate this page

Your opinion has been submitted successfully!

Thank you for your contribution. If you need help or have any questions, please use the contact form.

Would you like to help us make digital public services more user-friendly by submitting your suggestions for improvement?

Then visit Zesumme Vereinfachen, the online participation platform dedicated to administrative simplification in Luxembourg.

Let's simplify things together

An error occurred

Oops, an error has been detected during your form processing.