Buying Waterfront Property In Luxembourg

Published on October 2, 2025 and written by Cyril Jarnias

Luxembourg, a small landlocked country in the heart of Europe, is renowned for its economic stability, high quality of life, and status as an international financial hub. However, when discussing purchasing waterfront property in this country, one encounters an obvious geographical paradox: Luxembourg has no direct access to the sea! Despite this reality, there are interesting options for investors seeking “feet-in-the-water” real estate. Let’s explore together the possibilities offered by this unique country and the strategies to adopt to realize your acquisition dream.

Hidden Gems: Where to Invest in Luxembourg to Enjoy Waterfront Living?

Although Luxembourg has no coastline, the country is filled with lakes, rivers, and waterways that can offer an appealing alternative for waterfront property enthusiasts. Here are some of the best options to consider:

1. The Luxembourg Moselle: A Touch of Riviera

The Moselle Valley, located in the eastern part of the country, is often nicknamed the “Luxembourg Riviera.” This wine region offers picturesque landscapes and interesting investment opportunities:

• Remich: This charming town along the Moselle is known for its riverside walks and gourmet restaurants. Properties with water views are particularly sought after here.
• Schengen: Famous for the European agreements signed here, this small locality offers an idyllic setting along the Moselle, at the border between Luxembourg, France, and Germany.
• Grevenmacher: This historic town offers real estate with views of the Moselle and easy access to surrounding vineyards.

2. Upper Sûre Lake: A Peaceful Haven in the Heart of the Ardennes

Located in the northwest of the country, Upper Sûre Lake is Luxembourg’s largest body of water. This region offers unique opportunities for nature lovers and water sports enthusiasts:

• Lultzhausen: This picturesque village on the lake offers properties with stunning water views and direct access to water activities.
• Insenborn: Ideal for investors seeking a peaceful setting, this hamlet offers opportunities to purchase vacation homes by the lake.

3. The Alzette Valley: Bucolic Charm at the Gates of the Capital

The Alzette, Luxembourg’s main river, flows through the capital and offers interesting investment opportunities near the city:

• Hesperange: This rapidly developing municipality offers modern real estate with views of the Alzette, just a few kilometers from Luxembourg City center.
• Mersch: Located in the heart of the country, this town offers pleasant living along the Alzette, with properties combining historic charm and modern comfort.

Keys to Success: How to Make Your Waterfront Purchase in Luxembourg a Reality?

Investing in Luxembourg real estate, particularly for waterfront property, requires a strategic approach and good understanding of the local market. Here are some essential tips for a successful acquisition:

1. Master the Specifics of the Luxembourg Real Estate Market

The Luxembourg real estate market is known to be one of the most expensive in Europe. This reality is explained by several factors:

• High demand due to the country’s economic attractiveness
• Limited supply of properties, especially for waterfront real estate
• Strict regulations regarding urban planning and construction

Therefore, it’s crucial to thoroughly research market prices and plan a substantial budget for your investment.

2. Work with Local Professionals

To effectively navigate the purchasing process, it’s recommended to surround yourself with experts:

• A real estate agent specialized in waterfront properties in Luxembourg
• A notary to secure the transaction and advise you on legal aspects
• A real estate tax expert to optimize your investment

3. Anticipate Constraints Related to Waterfront Property Purchase

Properties located near waterways may be subject to specific regulations:

• Flood risks: Check the risk prevention plan and any insurance constraints
• Environmental restrictions: Some areas may be protected, limiting construction or renovation possibilities
• Water access rights: Make sure you know your rights regarding the use of the water body adjacent to your property

4. Explore Financing Opportunities

The Luxembourg banking system offers attractive financing solutions for real estate purchases:

• Mortgage loans with favorable interest rates
• Possibility to borrow up to 80% of the property value for residents
• Specific financing options for non-residents investing in Luxembourg

5. Consider Your Property’s Rental Potential

If you’re considering purchasing waterfront property as a rental investment, keep in mind that:

• Demand for waterfront vacation rentals is strong, particularly during the summer season
• Properties located in tourist areas like the Moselle Valley can offer good rental returns
• It’s important to comply with local regulations regarding seasonal rentals

An Atypical Investment with Multiple Advantages

Investing in waterfront property in Luxembourg may seem paradoxical at first glance, but this option offers numerous advantages:

1. Exceptional Living Environment

Properties located along Luxembourg’s waterways offer a peaceful and green environment, ideal for rejuvenation away from urban hustle. The country’s high quality of life, combined with water proximity, creates a unique living environment in Europe.

2. Secure Heritage Value

The Luxembourg real estate market is known for its stability and consistent growth. Waterfront properties, being rare and in demand, often constitute investments with strong long-term appreciation potential.

3. Diverse Recreational Opportunities

Whether on the Moselle, Upper Sûre Lake, or Alzette, owners can enjoy a multitude of water and outdoor activities: swimming, fishing, sailing, hiking, cycling… All within a preserved natural setting.

4. Advantageous Taxation

Luxembourg offers an attractive tax framework for real estate investors, including:

• Favorable inheritance and gift taxes
• Moderate taxation of rental income
• Tax optimization possibilities for non-residents

5. International Accessibility

Despite its lack of coastline, Luxembourg benefits from a central geographical location in Europe. Owners can thus enjoy their waterfront property while remaining connected to major European cities thanks to efficient transportation infrastructure.

In conclusion, although Luxembourg has no maritime coastline, it offers appealing alternatives for waterfront property enthusiasts. Whether along the Moselle, by Upper Sûre Lake, or in the Alzette Valley, investment opportunities abound for those who know how to seize them. By following the advice provided in this guide and surrounding yourself with competent professionals, you can realize your dream of acquiring “feet-in-the-water” real estate in the heart of Europe, while benefiting from the numerous advantages offered by the Grand Duchy.