Renting a property in Luxembourg can be more expensive than you think if you are not used to the national real estate system.
According to recent statistical data, in 2018 the national average rental cost of a house was 2 822€/month, and 1 469€/month for a flat, in the country as a whole. Rental averages for Luxembourg city were 3 835€/month for a house and 1 710€/month for a flat.
Three other factors have to be taken into consideration:
(a) the deposit (usually between 2-3 months’ rent)
(b) advance payments on utilities for flats and
(c) agency fees if you go through an agency (one month’s rent plus VAT).
Here is an example:
I would like to rent a house with a monthly rent of 2 900€. To be able to get this rental through an agency I will have to make the following financial calculation:
2 900€ for the first month’s rent
+
8 700€ for the deposit (usually 3 months’ rent, which is the maximum allowed, for a house)
+
3 393€ for agency fees (€2 900+17% VAT)
= 14 993€ to be paid on signature of the lease agreement.
For more practical real estate related information do not hesitate to message me.
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