Real Estate Succession in Luxembourg: The Complete Guide

Published on October 29, 2025 and written by Cyril Jarnias

Navigating the Maze of Real Estate Succession in Luxembourg

Navigating the maze of real estate succession in Luxembourg can prove complex due to the specific legal and tax characteristics unique to the Grand Duchy. While the country stands out for its dynamic economic environment and constantly evolving real estate market, understanding the complete procedure, from administrative steps to tax implications, becomes essential to ensure a smooth transition compliant with legislation.

This article aims to decipher the key steps and provide practical advice for anyone considering managing or planning a real estate succession in Luxembourg, while offering a clear perspective on the rights and obligations of heirs in this unique context.

Understanding Succession Rules in Luxembourg

Main Legislative Sources Governing Succession in Luxembourg:

• Luxembourg Civil Code (particularly articles 720 and following for legal devolution, articles 967 and following for wills, articles 913 and following for forced heirship)
• Law of August 10, 1915 on commercial companies (for succession aspects of shares or corporate interests)
• Regulation (EU) No. 650/2012 of July 4, 2012 on cross-border successions

Types of Succession in Luxembourg:

• Intestate succession (without a will): The distribution of assets strictly follows the legal order of heirs.
• Testate succession: The deceased organizes the distribution of their assets through a will, within the limits of forced heirship.

Order of Heirs and Respective Rights:

Category of Heirs	Succession Right	Specifics
Descendants	Priority (children, grandchildren by representation)	Minimum share guaranteed by forced heirship.
Surviving Spouse	Variable rights depending on presence of children	Inherits jointly with descendants. Their share varies based on the number of children.
Ascendants (parents, grandparents)	Called upon in the absence of descendants and spouse	Inherit with privileged collateral relatives (brothers/sisters).
Privileged Collateral Relatives	Brothers and sisters, nephews/nieces	Called upon if no descendants or direct ascendants.
Ordinary Collateral Relatives	Uncles, aunts, cousins	Called upon as a last resort, up to the 6th degree (or 8th in exceptional cases).

Examples of Distribution (Spouse + Children):

• 1 child: 1/2 for the child, 1/2 for the surviving spouse
• 2 children: 2/3 for the children, 1/3 for the surviving spouse
• 4 children: 3/4 for the children, 1/4 for the surviving spouse

Forced Heirship:

Forced heirship is the minimum portion of the inheritance that the law guarantees to certain heirs (primarily descendants). In Luxembourg:

• 1 child: the forced share is half of the estate
• 2 children: the forced share is two thirds
• 3 children or more: the forced share is three quarters

The deceased can only freely dispose of the disposable portion (the remainder). In the absence of descendants, there is no forced heirship for the surviving spouse or for ascendants.

Tax Treatment of Successions:

• Inheritance taxes due on movable and immovable property located in Luxembourg.
• The rate varies according to the degree of kinship and the share received.
• Total exemption from inheritance tax on the share received by the surviving spouse or direct descendants (children, grandchildren).
• For real estate properties, specific duties may apply if the heir is not a descendant or spouse.
• The deceased’s debts, taxes due, and funeral expenses are deducted from the estate assets before calculating taxes.

Possible Exceptions:

• Certain exemptions exist for the deceased’s primary residence transferred to a descendant or the surviving spouse.
• Previous gifts (less than one year before death) may be reintegrated into the taxable estate.

Role of the Notary and Procedure:

• The notary is responsible for drawing up the affidavit of heirship, listing the heirs and their rights.
• They conduct an inventory of assets, verify the existence of debts, and draft the necessary documents for liquidation and distribution.
• If the heirs disagree, they can petition the court to decide.
• The notary collects inheritance taxes and ensures compliance with forced heirship rules.

Cross-Border Procedures:

• In the presence of assets abroad, European Regulation No. 650/2012 applies: the law of the deceased’s last habitual residence generally governs the succession, unless a national law is expressly chosen by will.
• The affidavit of heirship or a European Certificate of Succession allows the heir’s status to be recognized in other EU countries.
• Assets located outside the EU may be subject to double taxation or specific rules according to existing tax treaties.

Visual Summary of Succession Steps in Luxembourg:

Step	Main Actor	Description
Opening of the succession	Notary	Verification of death, establishment of the affidavit of heirship
Inventory and liquidation	Notary	Asset valuation, debt verification, share calculation
Distribution and attribution	Notary	Drafting of distribution deeds, property transfer
Payment of tax duties	Notary/heirs	Calculation, declaration, and payment of inheritance taxes
Cross-border procedures	Notary/lawyer	Application of private international law, issuance of European Certificate of Succession

Key Takeaways:

• Luxembourg law strictly protects descendants through forced heirship.
• The notary plays a central and mandatory role in most successions.
• Successions with foreign elements require thorough analysis of applicable law and international conventions.

Key Steps in Cross-Border Real Estate Transfer

Specific Cross-Border Regulations in Luxembourg:

Luxembourg applies the European succession regulation (EU Regulation No. 650/2012), which establishes the principle of unity of applicable law: since August 17, 2015, a succession opened in an EU country (excluding Denmark, Ireland, United Kingdom) is generally governed by the law of a single state, typically that of the deceased’s last habitual residence. This regulation aims to avoid the application of multiple national legislations based on asset location and facilitates the recognition of succession decisions and acts in the EU.

• The deceased can choose the law of their nationality to govern their entire succession.
• The competent authority is generally that of the country of last habitual residence, unless another law is expressly chosen.

Legal Steps for Foreign Heirs:

For a foreign heir to assert their rights over assets located in Luxembourg, they must produce an affidavit of heirship (national document) or a European Certificate of Succession (ECS). The ECS, provided for by the European regulation, serves to prove their status as heir, legatee, or executor and is recognized in all concerned EU countries.

Required Steps:

• Presentation of the ECS or affidavit of heirship to a notary or Luxembourg administration.
• Identification of heirs and their rights.
• Publication of the succession if necessary.

Asset Valuation and Distribution:

• All of the deceased’s assets must be inventoried and valued at their value on the date of death.
• Asset distribution is carried out in accordance with the applicable law determined by the European regulation or by the deceased’s choice.

Step	Description
Inventory	Listing and valuation of assets (real estate, financial, etc.)
Determination of Heirs	Based on ECS or affidavit of heirship
Distribution	According to applicable law (forced share, disposable portion, etc.)
Settlement of Debts	Deduction of the deceased’s debts from the estate assets

Settlement of Inheritance Taxes in Luxembourg:

• If the deceased was a Luxembourg resident, all their movable assets (in Luxembourg or abroad) and their immovable property located in Luxembourg are taxable in Luxembourg.
• If the deceased was not a resident but owned real estate in Luxembourg, only these assets are subject to Luxembourg taxation.
• Inheritance taxes range from 0% to 15% depending on the kinship and the net value of the transferred assets.

Potential Complications:

• Double taxation: Luxembourg has not signed a preventive double taxation agreement regarding succession with France or Germany. An heir may therefore be taxed in several countries.
• Differences in inheritance taxes: Rules regarding forced share, disposable portion, or exemptions vary considerably from one country to another.
• Absence of international succession conventions: This can complicate the determination of applicable law and tax settlement.

Concrete Example:

A French resident dies leaving a property in Luxembourg and bank accounts in France. According to the European regulation, the law of the last habitual residence (France) applies, unless the deceased chose otherwise. The heirs will need to obtain a European Certificate of Succession, recognized in Luxembourg, to assert their rights. Properties located in Luxembourg will be taxed in Luxembourg, while other assets will be taxed in France. In the absence of a double taxation agreement, the heir may be liable for taxes in both countries.

Importance of Specialized Legal Assistance:

The intervention of a specialist in private international law or cross-border succession law is essential to:

• Analyze the deceased’s estate and family situation
• Optimize taxation and avoid double taxation
• Manage administrative procedures with authorities in multiple states
• Ensure the validity of produced documents (ECS, affidavit of heirship, wills, etc.)

Prior planning with a professional helps secure the transfer and limit disputes or additional costs related to the complexity of cross-border successions.

Inheritance Taxes for Foreigners in Luxembourg

Definition and Importance of Inheritance Taxes

Inheritance taxes are taxes levied on the transfer of a deceased person’s estate to their heirs. They apply to the net value of transferred assets, whether real estate, movable property, or financial assets. Their importance lies in the fact that they constitute a source of revenue for the state and aim to limit wealth concentration during intergenerational transfers.

Specific Rules Applicable to Foreigners in Luxembourg

• A foreigner is subject to Luxembourg inheritance taxes for real estate located in Luxembourg, even if they are not a resident.
• If the deceased was a resident of Luxembourg, all their movable assets (wherever located) and their real estate in Luxembourg are taxed.
• If the deceased was not a resident, only real estate located in Luxembourg is taxed in Luxembourg; other assets fall under the inheritance tax of the country of residence or nationality.

Variations According to International Tax Conventions

• Luxembourg has concluded tax conventions with certain countries to avoid double taxation in matters of succession.
• In the presence of a convention, the tax burden may be shared between Luxembourg and the country of residence or nationality of the deceased, or certain exemptions may apply.

Situation	Taxation in Luxembourg	Taxation in Home Country
Luxembourg resident, property in Luxembourg	Yes	According to convention
Non-resident, property in Luxembourg	Yes	No (unless convention states otherwise)
Luxembourg resident, property abroad	No	Yes

Exemptions and Reductions for Foreigners

• Direct line succession (children, parents) is exempt from inheritance taxes on the legal share.
• Between spouses, succession is exempt if there are common children; otherwise, 5% rate applies.
• Collateral relatives are taxed from 6% to 15% depending on the share received.
• Tax conventions may provide for additional reductions or exemptions based on the country of residence or nationality.

Concrete Examples

• Example 1: A Belgian national, non-resident in Luxembourg, dies leaving an apartment in Luxembourg City. Their heirs will have to pay Luxembourg inheritance taxes on this apartment.
• Example 2: A French resident dies owning real estate in Luxembourg. The heirs will have to pay taxes in Luxembourg for the property, and potentially in France for other assets, unless otherwise provided by a tax convention.
• Example 3: A Luxembourg resident bequeaths real estate in France. This property will not be taxed in Luxembourg, but in the country where it is located.

Administrative Procedures for Foreigners

• File an inheritance tax return or transfer declaration with the Registration, Domains and VAT Administration (AED).
• Provide documents related to the succession (death certificate, property titles, asset valuation, etc.).
• Pay the due taxes after receiving the payment notice from the administration.
• Comply with any additional procedures in the home country (declaration, tax payments).

Practical Tips and Useful Resources

• Consult a Luxembourg notary or lawyer specialized in private international law to anticipate applicable taxation.
• Verify the existence of a tax convention between Luxembourg and the home country.
• Contact the Registration, Domains and VAT Administration (AED) for any administrative information.
• Consider drafting a will adapted to the international situation to avoid conflicts of laws and optimize succession taxation.

Key Takeaway: Foreigners are liable for inheritance taxes in Luxembourg for real estate located in the territory, regardless of their nationality or residence. The application of tax conventions, kinship relationships, and administrative procedures are essential to avoid double taxation and optimize the transfer.

The Role of the Notary in an International Succession

The notary plays a central and multifaceted role in managing international successions in Luxembourg, due to the increasing complexity of cross-border estate and family situations.

Importance of the Notary as Legal Expert

• The notary is an indispensable expert for navigating the complexity of international succession laws, particularly since the entry into force of Regulation (EU) No. 650/2012, which imposes the application of a single law to all assets of the succession in the concerned Member States.
• They analyze foreign elements (nationality, residence, asset location) and advise on the law applicable to the succession, which could be that of the deceased’s last habitual residence or, by option, that of their nationality.

Verification of Foreign Documents

• The notary verifies the authenticity and compliance of succession documents from different countries (death certificates, wills, notarial acts), to ensure their validity according to Luxembourg and European legislation.
• They ensure that documents meet formal and substantive requirements of Luxembourg, while considering particularities of private international law.

Coordination Between Foreign and Luxembourg Notaries

• The Luxembourg notary collaborates with foreign notaries or authorities to obtain necessary information (certificates, attestations, inventories) and to facilitate the legal transfer of real estate located outside Luxembourg.
• This coordination is essential for the recognition of acts and the legal security of property transfer.

Advice and Assistance in International Taxation

• The notary advises on applicable taxation (inheritance taxes, international tax conventions) and ensures optimization of tax costs for heirs.
• They inform about declarative obligations and assist heirs in complying with tax formalities both in Luxembourg and abroad.

Key Steps of an International Succession in Luxembourg

Step	Role of the Notary
Opening of the succession	Analysis of context, receipt of initial declarations
Verification of heirs and legatees	Verification of kinship relationships, testamentary wishes
Determination of applicable law	Application of Regulation (EU) No. 650/2012
Collection and verification of documents	Verification of foreign acts, translation, legalization
Establishment of estate assets	Valuation of assets in Luxembourg and abroad
Coordination with foreign notaries	Transfer of assets, recognition of foreign decisions
Tax advice and declaration	Calculation and declaration of inheritance taxes
Distribution and transfer of assets	Drafting of distribution deeds and property transfer

Examples of Common Situations Requiring Notary Intervention

• A Luxembourg deceased owning real estate in France: the notary must ensure French formalities are respected, in collaboration with a French notary, to guarantee the property’s transfer to the heirs.
• A foreign resident with bank accounts and a residence in Luxembourg: the notary analyzes different applicable laws, verifies the validity of foreign wills, and secures the transfer of Luxembourg assets.
• A multinational family with several heirs residing in different countries: the notary coordinates the procedure to harmonize asset transfer according to the chosen law and relevant tax rules.

Applicable European Regulations

Regulation (EU) No. 650/2012 establishes the principle of a single law applicable to the succession, facilitates mutual recognition of acts, and provides for the issuance of a European Certificate of Succession, allowing proof of status as heir or legatee in all concerned Member States.

The Luxembourg notary is thus the privileged interlocutor for securing, optimizing, and coordinating all steps of an international succession, ensuring compliance with national and European rules, and protecting the rights of heirs.