Renovating a Property in Luxembourg: Complete Guide

Published on October 1, 2025 and written by Cyril Jarnias

Luxembourg, a small country at the heart of Europe, is attracting more and more real estate investors thanks to its economic stability and high quality of life. Whether you own an older property or are considering acquiring a property to renovate, real estate renovation in Luxembourg can prove to be an excellent way to increase the value of your investment. In this article, we will explore the essential aspects of property renovation in the Grand Duchy, from key steps in the process to budget considerations, including the wise choice of materials.

Enhancing Your Property: The Benefits of Renovation in Luxembourg

Renovating a property in Luxembourg offers numerous advantages, both financially and in terms of living comfort. Here are some of the main reasons why investing in the renovation of your Luxembourg property can be a wise decision:

• Increase in market value: A well-executed renovation can significantly boost your property’s value in the particularly dynamic Luxembourg real estate market.
• Improved energy efficiency: Luxembourg strongly encourages energy renovations, offering tax incentives for property owners who enhance their property’s energy performance.
• Adaptation to modern standards: Renovation allows you to bring your property up to current comfort and safety standards, making it more attractive for rental or resale.
• Space personalization: Renovating gives you the opportunity to shape your living space according to your specific tastes and needs.
• Reduction in long-term maintenance costs: By modernizing installations and equipment, you reduce the risk of breakdowns and future maintenance costs.

The Luxembourg real estate market is known for its resilience and steady growth. A well-renovated property in sought-after areas like Luxembourg City, Strassen, or Bertrange can see its value increase by 20 to 30% after well-planned renovation work.

From Planning to Completion: The Crucial Steps of Your Renovation Project

Undertaking renovation work in Luxembourg requires careful planning and adherence to certain key steps. Here is a detailed guide to successfully carry out your project:

1. Assessment and Planning

– Have a comprehensive diagnostic of your property done by an expert. – Clearly define your renovation objectives and establish a detailed project brief. – Consult an architect or interior designer to optimize space and maximize added value.

2. Obtaining Necessary Permits

– Inquire with your municipality about required permits for your work. – For significant structural modifications, a building permit will generally be necessary. – Don’t forget to check specific regulations if your property is located in a protected or classified area.

3. Selection of Professionals

– Choose licensed and experienced contractors, familiar with Luxembourg standards. – Request multiple quotes and check company references. – Ensure that craftsmen are registered with the Luxembourg trade register and have the necessary insurance.

4. Execution of Work

– Establish a precise schedule with your contractors. – Regularly monitor work progress and don’t hesitate to communicate with professionals. – Be prepared to handle potential unforeseen issues, common in renovation projects.

5. Quality Control and Finishing

– Conduct a detailed inspection upon completion of work. – Ensure all finishes meet your expectations and current standards. – Obtain all necessary certificates, including the updated energy performance certificate.

Financing Your Project: Options and Strategies for a Controlled Budget

Renovating a property in Luxembourg can represent a significant investment. Here’s how to plan and finance your project optimally:

Realistic Cost Estimation

In Luxembourg, renovation costs can vary considerably depending on the scope of work and quality of finishes chosen. On average, budget between €1,500 and €3,000 per square meter for a complete renovation. It’s crucial to establish a detailed budget, including a margin for unforeseen expenses (typically 10 to 15% of the total budget).

Financing Options

• Traditional bank loan: Luxembourg banks offer specific renovation loans, often at favorable rates.
• Climate loan: The Luxembourg government offers zero-interest loans for energy renovations, under certain conditions.
• Grants and subsidies: Inquire about available assistance, such as “PRIMe House” for energy renovations or specific municipal aid.
• Mortgage refinancing: If you already have a mortgage, consider renegotiating it to include renovation costs.

Tax Optimization

Remember that certain renovation work may be tax-deductible in Luxembourg. Keep all your invoices and consult an accountant to maximize your tax benefits.

Phased Planning

If your budget is limited, consider carrying out your renovation in stages. Start with essential work (roofing, insulation, electricity) before moving on to aesthetic aspects.

Materials and Trends: Making the Right Choices for Sustainable Renovation

The choice of materials is crucial in a renovation project in Luxembourg, not only for aesthetics and durability but also to comply with the country’s increasingly strict environmental standards. Here are some tips for making the best choices:

Priority to Energy Efficiency

– Insulation: Opt for high-performance materials like rock wool or cellulose, highly valued in Luxembourg for their thermal and acoustic efficiency. – Windows: Choose triple glazing, standard in new Luxembourg constructions, for optimal insulation. – Heating: Consider heat pumps or condensing boilers, strongly encouraged by the country’s energy policies.

Sustainable and Eco-Friendly Materials

– FSC or PEFC certified wood for joinery and coverings. – Low-VOC (Volatile Organic Compounds) paints and coatings. – Recycled or recyclable materials for interior fittings.

Design Trends in Luxembourg

– Nordic minimalism: Clean lines and neutral colors, very trendy in Luxembourg interiors. – Mix of modern and traditional: Integration of contemporary elements in historical buildings, reflecting Luxembourg’s rich history. – Smart Home: Integration of home automation technologies for lighting, heating, and security control.

Compliance with Local Standards

Ensure all chosen materials comply with Luxembourg standards, particularly regarding fire safety and energy performance. The “Energie fir d’Zukunft+” label is a good quality indicator for construction materials in Luxembourg.

Renovating a property in Luxembourg represents a significant investment, but one that can be highly profitable. By following these tips and surrounding yourself with qualified professionals, you can transform your property into a modern, comfortable, and energy-efficient living space, while significantly increasing its value in the Luxembourg real estate market.

The key to success lies in careful planning, well-managed budgeting, and wise choices regarding materials and design. Don’t forget to stay informed about the latest regulations and tax incentives offered by the Luxembourg government, which can greatly influence the profitability of your renovation project.