Housing in Luxembourg (logement)

Most newcomers rent on the private market. Renting is governed by the amended law of 21 September 2006 on residential leases (bail à usage d'habitation), which was reformed with effect from 1 August 2024. The Ministry of Housing pays individual housing aid through its one-stop shop for housing aid (Guichet unique des aides au logement). Public developers such as the Fonds du Logement and the SNHBM, as well as communes, offer subsidised and affordable homes.

Renting: the main rules

• A residential lease must be in writing. It states, among other things, the rent without charges, the advance payments for charges, any deposit, and that either party can go to the rent commission (commission des loyers) in case of a dispute about the rent.
• Rent cap: the yearly rent may not exceed 5% of the capital invested in the home (land, construction and improvements, revalued). The Ministry of Housing publishes a tool to check the maximum.
• The rent can be adjusted only once every 2 years.
• Deposit (garantie locative): at most 2 months' rent for leases signed from 1 August 2024 (it was 3 months before). The law sets deadlines and penalties for returning it at the end of the lease. A move-in inventory (état des lieux) must be signed at the latest on the day you move in.
• Agency fees for new leases are split 50/50 between landlord and tenant. Any clause to the contrary is void.

Housing aid

• Rent subsidy (subvention de loyer): €10 to €520 a month (2026), depending on household size and income; the maximum was set at €200 for a single person in 2024. You need a right of residence of more than 3 months, a private-market lease, regular income below the legal limit, and a rent (without charges) above 25% of your net household income. No one in the household may own more than one third of a home in Luxembourg or abroad.
• State rent guarantee: if you cannot pay a deposit, the Ministry of Housing can guarantee it. You then save the full amount in a blocked account within 3 years. The deposit may not exceed 2 months' rent, and the rent may not exceed 50% of your household income.

Social and affordable housing

• Since 1 January 2026, the national register of affordable housing (RENLA) on MyGuichet.lu is the single entry point to apply for affordable housing. You register once.
• The Fonds du Logement rents subsidised homes to people with modest incomes and ranks applications by priority. Applicants may not own another home, in Luxembourg or abroad.

Common pitfalls for newcomers

• Check the rent against the legal cap before signing; disputes about the rent can go to the rent commission.
• Do not pay more than 2 months' rent as a deposit, or more than half of the agency fee.
• Ask for the energy performance class: property advertisements must show it.
• The rent subsidy does not apply to homes rented from public bodies, or from your parents or children, and it stops if you move.

Official guidance: Guichet.lu: residential lease, Guichet.lu: rent subsidy, Logement.lu: rent subsidy amounts, Logement.lu: lease reform 2024, Guichet.lu: state rent guarantee