hello expatGuideBlog
Create my account
  1. Home
  2. /
  3. Blog
  4. /
  5. Where to live

Renting in Luxembourg: the deposit, the rent cap and your rights

By The Hello Expat editorial team·Updated on 21 October 2026·5 min read

In this article
  1. What does the law say about renting in Luxembourg?
  2. What must the lease contain?
  3. How can you tell if the rent is too high?
  4. How does the deposit work?
  5. How do you end a lease?
  6. What is the difference between a colocation and coliving?
  7. What mistakes should you avoid?
  8. How do you look for a place when renting in Luxembourg?
  9. What can you do if there is a dispute when renting in Luxembourg?

Finding a flat is the hard part of arriving in Luxembourg. Once you have found one, the law helps you more than you might think. Renting in Luxembourg is regulated by a law that was revised in August 2024, and it caps the deposit, shares the agency fees and limits the rent. Knowing the main rules lets you spot an offer that breaks them.

What does the law say about renting in Luxembourg?

The basics, as set out by Guichet.lu and the Ministry of Housing:

  • The lease must be written, otherwise it is void. Services such as cleaning or supplies must be itemised separately.
  • The deposit (garantie locative) cannot exceed two months' rent for leases signed since 1 August 2024. It used to be three.
  • Agency fees are shared equally between owner and tenant. A contrary clause is void.
  • Rent is limited, in principle, to 5% a year of the capital the owner invested in the home. For a furnished home, a supplement of up to 1.5% of the furniture's cost may apply for items invoiced in the last ten years.
  • Increases can occur at most every two years, and by no more than 10% of the current rent.
  • The "luxury" label that used to justify higher rents has been abolished.

These rules are in the amended law of 21 September 2006 on residential leases, in the version consolidated on 1 August 2024. Leases signed before 1 August 2024 remain valid as they were.

What must the lease contain?

According to Guichet.lu, a lease should state the parties, the duration, the rooms, the address and cadastral reference, the rent excluding charges, the charges, the deposit if there is one, and the possibility of referring a rent dispute to the commission des loyers.

You should also receive a certified copy of the energy performance certificate, and the advert should have shown the energy class. If you pay a deposit, an entry inventory (état des lieux) must be signed no later than the day you move in. Even without a deposit, do one with photographs.

Moovy

Moovy, our AI assistant

A question about your situation?

Find out what applies to you in Luxembourg, at any hour: Moovy prepares your file step by step and tells you where to check.

Create my free accountFounders offer on every paid plan, for your first subscription.

If a landlord proposes something that does not look right, such as three months' deposit, an oral agreement or a rent that seems high, Moovy can compare the offer with the official rules and help you draft a polite message or a letter. It cannot sign or represent you; the commission and the courts decide disputes.

How can you tell if the rent is too high?

The 5% cap applies to the capital invested by the owner, which is the purchase price or construction cost, updated, plus certain works. You do not know that number, but the ministry offers a calculator and a brochure. If the rent looks out of line, you can refer the question to the rent commission of your commune. The landlord must also tell you in the lease that this option exists.

For context, the housing observatory reported on 30 September 2026 that the median asking rent for an apartment in Luxembourg in 2025 was €33 per square metre, around three times the level in neighbouring regions (about €12 in the northern Lorraine, about €10 in Wallonia, Rhineland-Palatinate and Saarland). Asking rents are not the same as the legal ceiling, which depends on the owner's investment. See cost of living in Luxembourg for the budget.

How does the deposit work?

You can pay it by bank transfer, with a bank guarantee, with an insurance, or with the State's guarantee for households who are entitled to it. It is returned in two stages once you leave. If the landlord returns it late without justification, after formal notice, a 10% surcharge on the monthly rent applies for each month of delay. Do not hand cash to anyone before you have visited the flat and signed a written lease.

How do you end a lease?

A tenant who wants to leave sends a notice within the period in the lease, three months in general. A landlord who takes the home back for personal use must give six months. A fixed-term lease that is not terminated at its end becomes an open-ended lease. Check the exact clause before you leave, because the notice is counted from the day the landlord receives it.

What is the difference between a colocation and coliving?

The 2024 law created a framework for colocation: co-tenants and the landlord sign one lease plus a co-living agreement, and the co-tenants are jointly liable. Coliving, where each tenant has an individual lease, is a different set-up. Read which one you are signing, because joint liability can matter if a flatmate stops paying.

What mistakes should you avoid?

  • Paying before visiting. In a tight market, rental scams exist. Visit, then sign a written lease, then pay.
  • Accepting three months' deposit. For leases since August 2024, that is not allowed.
  • Paying the agency alone. The owner must pay half.
  • Skipping the inventory. It protects your deposit.

If you are thinking of buying instead, read buying property in Luxembourg. To choose a neighbourhood, see best places to live in Luxembourg.

How do you look for a place when renting in Luxembourg?

Start early, because the market is competitive, and prepare a file before the first visit: ID, the employment contract or an offer, recent payslips if you have them, and a short note about who will live in the flat. Landlords and agencies ask for proof of income, and being able to send it immediately helps. Keep in mind that agency fees are shared equally with the owner, and that you can compare the advertised rent with the legal ceiling of 5% of the owner's invested capital by asking the owner or the agency how the rent was calculated.

Visit the flat in person, ask for the energy performance certificate, and read the lease before signing. If anything is unclear, ask in writing.

What can you do if there is a dispute when renting in Luxembourg?

Start with a dated written message to the landlord that says what you ask for and refers to the relevant clause or rule. If the issue concerns the amount of the rent, either party can refer it to the rent commission of the commune, as the lease must say. For a deposit that is not returned, the law sets deadlines and a 10% monthly surcharge for unjustified delay after formal notice. For anything beyond that, consult a lawyer or a tenant association. Keep all messages, photos and the inventory.

Rules change and a lease is a legal document. When in doubt, ask your commune or a lawyer before you sign.

Frequently asked questions

How much deposit can a landlord ask for in Luxembourg?+

At most two months' rent for leases signed since 1 August 2024. Older leases could go up to three months.

Who pays the estate agent?+

Owner and tenant share the agency fees equally. Any clause that says otherwise is void.

Does a lease have to be in writing?+

Yes. A lease that is not written is void, and it must be drawn up in as many copies as there are parties.

Is there a maximum rent?+

In principle, annual rent for unfurnished housing cannot exceed 5% of the capital the owner invested. You can refer a dispute to the rent commission of your commune.

What notice does a tenant give?+

Three months in general, unless the lease says otherwise. A landlord who takes back the home for personal need must give six months.

Sources consulted

  • Guichet.lu, Concluding a residential lease between tenant and landlord (updated 26.06.2025)
  • Guichet.lu, Terminating or transferring a lease
  • Ministry of Housing (Logement.lu), Revision of the residential lease law (August 2024)
  • Legilux, Amended law of 21 September 2006 on residential leases, consolidated version at 1 August 2024
  • Government of Luxembourg, Housing observatory: asking rents in 2025 (30 September 2026)

Your move, one step at a time.

Create your free account and ask Moovy your questions. The Founders offer applies to your first subscription, on every paid plan.

Create my free account

In this article

  1. What does the law say about renting in Luxembourg?
  2. What must the lease contain?
  3. How can you tell if the rent is too high?
  4. How does the deposit work?
  5. How do you end a lease?
  6. What is the difference between a colocation and coliving?
  7. What mistakes should you avoid?
  8. How do you look for a place when renting in Luxembourg?
  9. What can you do if there is a dispute when renting in Luxembourg?

Read next

Where to live

Buying property in Luxembourg: 7% duties and the Bëllegen Akt credit

Buying property in Luxembourg: 7% duties, the Bëllegen Akt credit (40,000 euros, 45,000 announced), occupancy rules and mortgage limits.

6 min read
Where to live

Best places to live in Luxembourg: the city, the south and the border

Best places to live in Luxembourg for expats: Luxembourg City, the south, the north and the French, Belgian and German border towns, and how to choose.

5 min read
Budget

Cost of living in Luxembourg: rent, tax, transport and what pays off

Cost of living in Luxembourg in 2026: asking rents of 33 euros per m2, the minimum wage, free public transport, free school meals and family allowances.

5 min read
hello expat
GuideBlogNeed protection?Create my accountLegal noticePrivacyTerms and conditionsLivro de Reclamações (complaints book)
© 2026 Hello Expat