Applying for government aid to finance a rental deposit

Residents

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Anyone who wishes to rent a home but who do not have the necessary means to finance the rental deposit – a guarantee of solvency or surety – required by the landlord may apply for financial aid to finance the deposit.

If the applicant meets all the criteria, the Ministry of Housing (Ministère du Logement) will stand as guarantor. In return, the tenant will be required to give an undertaking to save the total amount of the rental deposit over a period of 3 years. This sum must be repaid to the ministry if the landlord applies to the Government for the payment of the guarantee.

Applicants must submit their application to the Single point of contact for housing assistance using a specific form (see the section 'Forms / Online services' below).

The eTracking feature for hardcopy (paper) forms is available for this procedure. This feature enables users to be kept up-to-date on the progress of their applications by email and/or by SMS.

Who is concerned

The application for financial aid to finance a rental deposit may be made by anyone who:

is of legal age on the date the application is submitted;
is legally resident in Luxembourg;
is 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;
has entered into a lease agreement for a dwelling on the private real estate market. The dwelling must be located in Luxembourg and be the tenant's main and permanent residence.

Prerequisites

Financial conditions

The granting of financial aid is contingent on the following conditions being satisfied:

the income of the applicant's household is lower than the following amounts (index value 871.66), which are set by law:
- EUR 3,181.56 for a single person;
- EUR 4,772.34 for 2 people without children;
- EUR 5,726.81 for a household with 1 child;
- EUR 6,681.28 for a household with 2 children;
- EUR 7,635.75 for a household with 3 children;
- EUR 8,590.21 for a household with 4 children;
- EUR 9,544.68 for a household with 5 children;
- EUR 10,499.15 for a household with 6 children;
- plus an additional EUR 954.47 per child after the 6th child;
under no circumstances may the tenant's monthly rent exceed 40 % of the household's net income.

The following are taken 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 applicants can prove that they have been receiving regular income for 3 months at the time the application is submitted.

Conditions relating to the rented dwelling

Applicants may also enter into a lease agreement for a dwelling:

that is on the private real estate market;
that is located in Luxembourg;
that is the applicant's main, permanent residence;
whose rent is set in accordance with Articles 3 to 5 of the amended law of 21 September 2006 on residential leases.

Preliminary steps

Applicants must open a conditional deposit account with a Luxembourg Government-approved credit institution.

Costs

Filing the application is free of charge.

How to proceed

Filing an application

Tenants must submit their application to the Single point of contact for housing assistance using a specific form (see the section 'Forms / Online services' below).

The completed and signed form should be submitted together with the supporting documents:

by post; or
directly at the offices of the Single point of contact for housing assistance; or
by email to: guichet@ml.etat.lu.

 Note: applications submitted electronically will be confirmed by postal mail by the administration.

Supporting documents

Applicants must enclose the following with their application:

the household composition declaration completed and signed by all applicants;
a declaration of honour signed by the applicant. If the application is made by several applicants, it is necessary to add a signed declaration of honour for each applicant;
an annual income certificate for the previous year, issued by the employer;
copies of the last 3 payslips for each applicant;
if the applicant is a foreign national: a copy of their residence permit;
a certificate of registration issued by the Joint Social Security Centre (Centre commun de la sécurité sociale – CCSS);
a copy of the lease as soon as it has been signed;

The ministry may request additional documents or information. In such cases, the applicant 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.

Application processing time

The file is typically processed within one week of receipt of the complete application.

If the application is granted, the applicant will receive a certificate stating that the Government undertakes to pay the landlord the amount of the rental deposit in the event that the landlord applies to the Government for the payment of the guarantee. The applicant will receive a copy of this certificate, and the landlord the original.

Amount of the guarantee

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

Under no circumstances may the rent exceed 40 % of the household income.

When several people apply for financial aid, any aid that is granted is distributed equally among them.

Check the rental deposit simulator for an estimate of the amount which may be granted.

Obligations

The beneficiary of the aid will be required to give an undertaking to save the total amount of the rental deposit over a period of 3 years.

The beneficiary may apply to the ministry for a temporary exemption from the payment of the monthly instalments. The application must be:

made in writing;
justified by reasons of force majeure, health or dire financial circumstances.

Aid recipients are also required to immediately notify the administration of any changes that could affect the granting, continuation, modification or withdrawal of the aid. Should they fail to do so, they will be required to refund the financial aid retroactively.

Reimbursement

If the landlord applies to the Government for the payment of the guarantee, the amount of the financial aid will be paid to the landlord.

If the beneficiary does not have sufficient savings to cover the amount of the guarantee paid by the Government to the landlord, the beneficiary will be required to reimburse the Government for the balance due.

However, the beneficiary may apply to the ministry for an exemption from reimbursement. The application must be:

made in writing;
justified by reasons of force majeure, health or dire financial circumstances.

The ministry may grant the beneficiary:

a full or partial exemption from reimbursement. In that case, the applicant may not reapply for financial aid until they have repaid the exempted amount of the first disbursement of financial aid;
repayment in instalments.

Appeal

In the event of a negative response, applicants may submit, within the regulatory time limits:

a non-contentious appeal to the Ministry of Housing;
a legal appeal to the administrative court;
an application to the Ombudsman.

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.

Forms / Online services

Demande en obtention d’une aide au financement d'une garantie locative

Télécharger le formulaire PDF, 417 Kb

Antrag auf Bewilligung einer staatlichen Mietgarantie

Das Formular herunterladen PDF, 345 Kb

Demande en obtention d'une aide au financement d'une garantie locative

Télécharger avec eTracking

Demande de garantie locative - Pièces à joindre

Télécharger le formulaire PDF, 107 Kb

Demande de garantie locative - Déclaration sur l'honneur

Télécharger le formulaire PDF, 171 Kb

Demande de garantie locative - Déclaration sur la composition du ménage

Télécharger le formulaire PDF, 192 Kb

Commande d'un certificat d'affiliation au CCSS

Démarche en ligne

Accéder à la démarche

Who to contact

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Ministry of Housing
Single point of contact for housing assistance

11, rue de Hollerich
L-1741 Luxembourg
Luxembourg

Phone : (+352) 8002 10 10

Fax : (+352) 458 844

Reception: Reception: Thursdays by appointment only; every other weekday from 8.00 to 12.00 and 13.30 to 16.00 (no appointment necessary) / Telephone: Mon.-Fri. from 8.00 to 16.00

(+352) 8002 10 10 info@ml.etat.lu Single point of contact for housing assistance Path to Single point of contact for housing assistance

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Further information

Rental deposit simulator

Legal references

Loi modifiée du 25 février 1979

concernant l'aide au logement
Loi modifiée du 21 septembre 2006

sur le bail à usage d'habitation et modifiant certaines dispositions du Code civil
Règlement grand-ducal du 20 décembre 2019

fixant les mesures d’exécution relatives à l’aide au financement de garanties locatives prévues par l’article 14quater-1 de la loi modifiée du 25 février 1979 concernant l’aide au logement