The market rent of your property, the maximum rent allowed by law and the gap between the two. Free, in two minutes.
Figures current as of November 2026.
Contrary to a common belief, residential rents are already capped in Luxembourg. This is the rule set by the law of 21 September 2006 on residential leases. It applies to every home let as a residence, whatever rent the market would bear.
The price you actually paid, not today's value of the property. The invested capital adds up:
A euro from 1995 is not worth a euro today. Each amount is multiplied by the coefficient for its year, published in the budget law. In the table in force (law of 19 December 2025, 2026 budget), a 2000 purchase is multiplied by 1.65, a 2010 purchase by 1.33, a 2020 purchase by 1.15. From 2024, the coefficient is 1.
A building ages. Once the construction is fifteen years old or more, the invested capital is reduced by 2% per two-year period. For a property you have bought, it is counted from the purchase date, not from construction. The depreciation applies to the construction and the works, never to the land. If the deed does not separate the land, its share is set at 20%. The upkeep and repair costs you have incurred are deducted from the depreciation and can cancel it if they match it; for an old building this is often decisive.
| House bought in 2000: €380,000 + €28,000 costs | €408,000 |
| Revaluation of the purchasecoefficient for year 2000 in the example table: 1.40 | €571,200 |
| Improvement works of €15,000, revalued | + €21,000 |
| 20% depreciationon €477,960: construction and works, land excluded (20%) | − €95,592 |
| Invested capital | €496,608 |
| Maximum annual rent: 5% | €24,830 |
| Maximum monthly rent | €2,069 |
Example from the official brochure "Le plafond légal du loyer" of the Ministry of Housing, computed with the coefficient table of the time. The calculator above applies the table currently in force.
It depends on their nature. The law distinguishes what improves the home from what merely keeps it in condition.
Insulation, better windows, a new bathroom, a fitted kitchen, an extension, a new heating system. The cost is added to the invested capital, revalued for the year of the works.
Painting, refurbishing, like-for-like replacement. These do not add to the capital. They do, however, reduce the depreciation, which limits how far the cap falls with age.
A renovated property lets for more: energy class A rents about 9.5% above class D or below, class B about 4.5% above, according to the Housing Observatory.
In figures: €40,000 of improvement works raises the cap by about €167 per month in the year of the works. Keep the invoices: they are what justify the amount.
The starting point is the level of advertised rents in your commune for an existing 70 m² flat. According to the Housing Observatory, it ranges from about €30/m² in Luxembourg City to under €16/m² in the north of the country. This level tracks the sale price per m² closely: the annual rent is roughly 3.5% of the price.
The calculation then applies the differences measured by the Observatory on rental listings:
| Feature | Effect on rent |
|---|---|
| Terrace | + 11.8% |
| Balcony | + 5.1% |
| Garden | + 2.2% |
| Garage | + 4.4% |
| Outdoor parking | + 1.6% |
| Energy class A · B · C | + 9.5% · + 4.5% · + 2.2% |
| Penthouse | + 15% |
| Duplex | − 2.8% |
Surface counts less than proportionally: a flat twice as large does not rent for twice as much. Levels are updated with the rise in advertised rents. The settings for condition, houses and classes E to G are valuo.lu assumptions.
These are rents asked in listings, excluding charges. The estimate is indicative and shown with a range of plus or minus 10%. The legal-cap calculation does not replace legal advice: furnished lets, luxury homes and very old properties follow special rules.
The annual rent cannot exceed 5% of the capital invested in the home. The invested capital is the purchase or construction price, land included, plus the deed costs and any improvement works. Each amount is revalued with the coefficient for its year, then a depreciation of 2% per two-year period applies to the construction from the fifteenth year. The result is divided by twelve to get the maximum monthly rent, excluding charges.
The price paid at the time, as shown in the notarial deed, not the current value of the property. The deed costs are added. This amount is then multiplied by the revaluation coefficient for the year of purchase, published in the budget law, to reflect the general rise in prices. For a construction, the cost of the works, fees and land is used.
Yes, when they are improvement works: insulation, a new bathroom, a fitted kitchen, an extension, replacing the heating with a more efficient system. Their cost is added to the invested capital, revalued for the year of the works. Upkeep and repair works are not added to the capital, but they are deducted from the depreciation.
The cap prevails. The tenant can refer the matter to the commune's rent commission to bring the rent back to the legal maximum. The other way round, a cap above the market has no practical effect: it is the market that sets the rent you will obtain.
At most once every two years, and always within the limit of 5% of the invested capital. In addition, each adjustment cannot raise the rent by more than 10%.
From the advertised rents published by the Housing Observatory, by zone of the country, and from its study of what makes a rent vary: surface, property type, energy class, balcony or terrace, garage. These are rents asked in listings, excluding charges, not rents recorded in signed leases.
They are used to send you the result and, with your consent, are passed on to a partner estate agency based in Luxembourg, which calls you about letting or managing your property. They are not shared with anyone else and you can ask for them to be deleted at any time.