Luxembourg CRE deals carry two costs that catch non-EU buyers: a 7% registration duty stack and a mandatory notary who controls the closing timeline. This checklist covers every Luxembourg commercial property check before you close in 2026.
Luxembourg's commercial market centers on Luxembourg City. Kirchberg and Cloche d'Or drive most office and retail demand.
A notary is required by law for all property transfers in Luxembourg. The notary prepares the deed and handles registration at the AED.
Luxembourg uses a two-tier zoning system - the PAG and PAP. Non-conforming commercial use must be confirmed in writing before you sign anything.
Load title docs, PAG/PAP certificates, and lease files into an Ellty data room before diligence opens. Each advisor gets a scoped link on day one.
Where Luxembourg deals actually go wrong
Not every check carries the same weight. The table below sorts risks by impact - dealbreakers first, then what moves the price, then basic hygiene - so your lawyer and notary know what to clear first.
| Area | Documents to pull | Luxembourg red flag | Matters most for | Tier | |
|---|---|---|---|---|---|
| Title and ownership | Title and ownership | Notarial title search, AED land register extract, chain of title, cadastral extract | Emphyteutic leases (bail emphytéotique) up to 99 years can encumber title; won't appear on the deed | All buyers | Dealbreaker |
| Notarial process | Notarial process | Notary appointment confirmation, draft deed, AED registration receipt | Luxembourg notary controls the closing date; a missing appointment delays by weeks with no workaround | All deals | Dealbreaker |
| Zoning - PAG and PAP | Zoning - PAG and PAP | PAG certificate, PAP documents, commune planning confirmation, permit history | Non-conforming commercial use under the PAG is common in older Luxembourg City parcels | Office, retail, development | Dealbreaker |
| Environmental - LSOC | Environmental - LSOC | Phase I ESA, LSOC search, soil survey, BASOL register search, asbestos survey | Luxembourg's Liste des Sites et Sols Pollués must be searched; industrial sites near Esch carry liability | Industrial, legacy commercial | Dealbreaker |
| Leases and tenancies | Leases and tenancies | All leases, bail commercial, rent roll, indexation clauses, sublease consents | Luxembourg commercial leases often include indexation to the cost-of-living index; buyers miss the exposure | Income-producing assets | Price-adjuster |
| Building and physical condition | Building and physical condition | PCA, building permit history, certificate of habitability, asbestos and energy audit | Older Luxembourg City buildings in Ville Haute require mandatory asbestos surveys before any transaction | All asset types | Price-adjuster |
| Service charge and operating costs | Service charge and operating costs | 3y operating statements, impôt foncier bills, CAM reconciliations, energy performance certificate | Luxembourg's impôt foncier (municipal property tax) rates vary by commune; confirm classification with the commune | Income-producing assets | Price-adjuster |
| Transfer tax and VAT option | Transfer tax and VAT option | Registration duty calculation, VAT option analysis, notary fee schedule, closing statement | 7% registration duty vs. 17% VAT option - VAT is recoverable but structuring gets this wrong often | All deals | Price-adjuster |
| Insurance and valuation | Insurance and valuation | Current policies, loss run history, flood zone check for Alzette river area, appraisal | Parcels near the Alzette river in Luxembourg City lower town carry periodic flood exposure | All | Standard check |
| Utilities and access | Utilities and access | Utility connection records, Creos or Encevo supply confirmation, road access easement search | Luxembourg utilities are privately operated; confirm active connection and service agreement at the parcel | All | Standard check |
| Seller KYC and AML | Seller KYC and AML | Entity docs, Luxembourg RCS extract, UBO register check, CSSF AML compliance, bankruptcy search | Luxembourg's UBO register check is mandatory; CSSF AML requirements apply to all real estate transactions | All deals | Standard check |
Due diligence on a Luxembourg property?
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Start free 14-day trialLuxembourg CRE checklist
The table ranked risks by severity. This is the full list to work through, grouped by area.
Title and ownership
- Order a cadastral extract and AED land register search before signing any heads of terms
- Search for bail emphytéotique (emphyteutic lease) rights; they encumber title for up to 99 years
- Confirm the chain of title goes back at least 30 years with your Luxembourg notary
- Check for any recorded hypothèque (mortgage) or privilege registered against the parcel
- Confirm the parcel reference in the Luxembourg cadastre matches all sale documents exactly
- Run a judgment lien and bankruptcy search on the seller before committing to the deal
Notarial process
- Book the notary appointment as soon as heads of terms are agreed; slots fill weeks in advance
- Confirm the notary will prepare the draft deed and submit to AED on your behalf
- Review the draft deed carefully; the notary acts for both parties in Luxembourg transactions
- Confirm the AED registration timeline with the notary before setting a closing date
- Ensure all pre-conditions in the sale agreement are met before the notarial deed is signed
Zoning - PAG and PAP
- Pull the Plan d'Aménagement Général (PAG) certificate from the commune before signing
- Confirm whether a Plan d'Aménagement Particulier (PAP) applies and whether it's approved
- For development parcels: check the PAP status and any outstanding commune approval conditions
- Verify the current commercial use is explicitly permitted under the PAG classification
- Check for any pending PAG revisions that could affect allowable use after your closing date
- For Kirchberg parcels: confirm district master plan alignment with your intended use
Environmental - LSOC
- Search the Luxembourg Liste des Sites et Sols Pollués (LSOC) for the parcel address
- Commission a Phase I ESA; prioritize sites near the former Esch-sur-Alzette industrial corridor
- Check for asbestos; Luxembourg requires an asbestos survey before commercial property transfer
- Run a BASOL register search for hazardous site records near the property
- For older commercial buildings: check for underground fuel storage tanks and historical site use
- Budget Phase II soil sampling ($10,000-$30,000) if the Phase I flags recognized conditions
Leases and tenancies
- Collect all bail commercial and standard leases with full amendment history
- Check Luxembourg cost-of-living index (IPCN) indexation clauses in all commercial leases
- Confirm estoppel certificates are deliverable before your scheduled closing date
- Cross-reference the rent roll against 12 months of AED-declared rental income from the seller
Use Ellty to issue NDAs before sharing lease files with competing advisors. Each recipient gets a tracked, watermarked link - you control who sees what and for how long.
Building and physical condition
- Commission a Property Condition Assessment; include energy performance certificate (CPE) review
- Confirm asbestos survey is current and signed off by an accredited Luxembourg inspector
- Pull the full building permit history from the commune where the property is registered
- Verify the certificate of conformity (autorisation d'exploitation) covers all commercial uses
- For pre-1990 buildings: check for lead pipes and check the structural survey dates
Service charge and operating costs
- Pull 3 years of operating statements and reconcile against commune impôt foncier bills
- Confirm the property's commune and confirm the applicable impôt foncier (municipal property tax) rate
- Audit CAM reconciliations against lease terms for all multi-tenant assets
- Check for outstanding syndic charges or building maintenance arrears before closing
Transfer tax and VAT option
- Confirm the registration duty: 6% base rate plus 1% transcription fee = 7% total
- Model the VAT option: 17% Luxembourg VAT applies to commercial deals where both parties are VAT registered
- VAT is recoverable by VAT-registered buyers; registration duty is not - model both scenarios
- Confirm whether the deal structure (share deal vs. asset deal) changes the tax treatment
- For share deals: confirm no hidden transfer tax triggers from prior Luxembourg restructurings
Insurance and valuation
- Pull current insurance policies and 3-year loss run history from the seller
- Check flood risk near the Alzette river; lower Luxembourg City has periodic flood events
- Order an independent RICS or Royal Institution of Chartered Surveyors-equivalent appraisal
- Confirm your lender's appraisal panel includes a Luxembourg-qualified valuer
Utilities and access
- Confirm active utility connections with Creos (electricity/gas) or the local utility operator
- Verify road access is via a public road or confirm a recorded private road easement
- Check for any outstanding utility easements that restrict development or extension rights
- Confirm broadband and data connectivity options for office and logistics asset types
Seller KYC and AML
- Pull a full Luxembourg Registre de Commerce et des Sociétés (RCS) extract on the seller entity
- Check the Registre des Bénéficiaires Effectifs (UBO register) for beneficial ownership
- Confirm CSSF AML compliance for the notary and any intermediaries involved in the deal
- Run a bankruptcy and lien search on the seller; Luxembourg courts register these at the RCS
- For non-EU sellers: confirm the seller has a Luxembourg tax representative for the transaction
How due diligence in Luxembourg works
Step 1 - Title search and notary engagement
Engage the notary and order the AED title search and cadastral extract on day one. The notary controls the closing date - a late appointment adds weeks with no workaround.
Confirm the title is free of emphyteutic lease rights. These can run up to 99 years and won't always surface on the initial AED extract.
Step 2 - Zoning and planning confirmation
Pull the PAG certificate from the commune immediately after contract. Non-conforming use under the PAG is the most common source of post-close disputes in Luxembourg City.
For Kirchberg and Cloche d'Or parcels, also confirm the district master plan classification. Active PAP revisions can restrict development rights that weren't visible at contract.
Step 3 - Leases and income review
Collect all bail commercial documents and check the indexation clauses first. Luxembourg cost-of-living index-linked leases can push rents materially above initial rent roll figures.
Compare Nevada's due diligence process if you run multi-market acquisitions. Both markets require specific local expertise - Nevada for water rights, Luxembourg for notarial procedure and VAT structuring.
Step 4 - Environmental review
Run the LSOC search and engage a Luxembourg-accredited asbestos inspector in parallel. Former industrial sites near the Esch-sur-Alzette corridor carry environmental liability that buyers from outside the EU miss.
Load LSOC search results, Phase I ESA, and asbestos reports into Ellty. Track which advisors opened each file and when - RICS valuers and lenders often need confirmation that environmental clearance is documented.
Step 5 - Closing via notary
All Luxembourg property transfers must close before a notary. The notary prepares the deed, collects the registration duty, and files with the AED.
Confirm whether the deal proceeds as an asset deal or share deal before closing. The tax treatment differs materially; asset deals trigger 7% registration duty, while share deals may avoid it.
How to set up your Luxembourg data room in Ellty.
Luxembourg deals move to notary fast. Load files into Ellty before advisors arrive. Each party gets a scoped, tracked link from day one.
- 1.Upload Luxembourg property files to a secure roomDrop title extracts, PAG/PAP docs, LSOC records, and leases into Ellty. Each folder maps to a diligence area.
- 2.Give each advisor a scoped, tracked linkYour notary sees title docs. Your tax advisor sees the transfer tax model. Ellty enforces the scope.
- 3.Monitor who reviews which documentsSee exactly which files each party opened and when. Catch delays before they hold up the notary appointment.
What makes Luxembourg different
The 7% registration duty is the number buyers underestimate most. It's non-recoverable on asset deals and is payable at closing through the notary.
The VAT option changes the math for VAT-registered buyers. Opting for 17% Luxembourg VAT instead of registration duty allows input VAT recovery - but only if structured correctly before the deed is signed.
The notary is the deal's chokepoint. Luxembourg notaries control the deed date and the AED filing. A busy notary adds 2-4 weeks to closing with no substitute route available.
Luxembourg's UBO register and CSSF AML requirements catch non-EU deal teams off guard. The UBO check is mandatory for all real estate transactions and must be completed before the notarial deed can be executed.
In Luxembourg, every transfer of immovable property must be established by a notarial deed. The notary must verify the identity of the parties, confirm the absence of encumbrances, and collect the registration duty on behalf of the State before the deed is registered with the Administration de l'Enregistrement, des Domaines et de la TVA.
Timeline and cost in Luxembourg
Weeks 1-2 cover kickoff: notary engagement, AED title search, cadastral extract, PAG certificate, LSOC environmental search, and Phase I ESA. Budget EUR 3,000-7,000 for this phase.
Load all files into Ellty before advisors arrive and assign each party a scoped, tracked link. That removes at least one week of email document exchange from a standard Luxembourg deal.
Weeks 2-4 cover deep review: Phase I ESA delivery, asbestos survey, building permit history, lease abstraction, indexation clause review, and impôt foncier confirmation. Cost runs EUR 5,000-15,000 depending on asset complexity.
Phase II soil sampling adds EUR 10,000-30,000 if the Phase I flags recognized environmental conditions. Budget early for industrial or legacy commercial parcels near Esch-sur-Alzette.
Weeks 4-6 cover resolution: transfer tax vs. VAT option modeling, title exception resolution, notary deed preparation, and AED registration. The notary collects the registration duty at signing.
Luxembourg's ~7% registration duty is the largest closing cost on asset deals. Notary fees run ~0.5-1% on top. VAT-registered buyers should model the VAT option before committing to deal structure.
Foreign buyers must confirm their tax position before closing. Non-EU sellers may require a Luxembourg tax representative for the transaction.
Running a Luxembourg property deal?
Hold title docs, LSOC records, and lease files in one secure, tracked Ellty room.
Start free 14-day trialCommon questions about due diligence on Luxembourg property
- Most Luxembourg CRE deals complete diligence in 4-8 weeks. Notary scheduling and AED registration can push past 8 weeks on complex deals.
- Luxembourg's registration duty is 6% of the purchase price plus a 1% transcription fee, totalling ~7% for commercial property asset deals.
- Yes. VAT-registered buyers can opt for 17% Luxembourg VAT instead of the 7% registration duty. VAT is recoverable; registration duty is not. Structure must be agreed before signing.
- Yes. All Luxembourg property transfers must be executed before a notary. The notary prepares the deed, collects registration duty, and registers with the AED.
- The Liste des Sites et Sols Pollués (LSOC) is Luxembourg's contaminated sites register. It must be searched before any commercial property acquisition.
- An emphyteutic lease is a long-term right (up to 99 years) that can encumber Luxembourg title without appearing clearly on the deed. A full title search must check for recorded emphyteutic rights.
