Foreigners are free to buy property in Luxembourg.

Real estate transaction costs include: attorney fees, notary fees, registration fee, taxes, agent commission.

Registration fee. Charged at a rate of 6%, in common with an additional (registration) tax of 1%.

Notary fees. Usually apply 1.5% of the value of the property.

Agent commission. Not higher than 3% (plus 17% VAT).

Foreign investors can purchase shares of private and state-owned companies in Luxembourg without restriction. However, stock purchase procedures vary for different types of companies.

The main advantage of buying shares of a private company is that the buyer will acquire the company with all its assets, which is used, among other things, to transfer real estate if the property is owned by the company.

The transaction must be approved by the Financial Regulator.

The purchase of shares of a Luxembourg company is based on the following documents:

• confidentiality agreement;
• legal audit report and company financial statements;
• purchase agreement prepared by the buyer.