Key takeaways: since 1 August 2024, every residential lease must be in writing, on pain of nullity, with 8 mandatory particulars. The rental deposit is capped at 2 months' rent, agency fees are split 50/50, a fixed-term lease not properly terminated automatically becomes open-ended, and the landlord can only terminate for three precise reasons, selling the property not being one of them. Here is the complete guide to residential leases, backed by the official texts.
The written lease is now mandatory: the 8 particulars to check
The reform of 23 July 2024 ended the verbal lease: for any contract concluded since 1 August 2024, writing is required on pain of nullity (Article 5 of the amended law of 21 September 2006). The contract must contain at least:
- the full identity of all parties;
- the effective date of the lease;
- the designation of all rented rooms, with address and cadastral reference;
- the rent excluding charges;
- the advances on charges or the flat-rate charge;
- the furniture supplement, if the home is furnished;
- the amount of any rental deposit;
- an indication that the rent commission can be seized.
Verbal leases concluded before 1 August 2024 remain valid under the old regime, but any new rental must be in writing, in as many copies as there are parties.
The rental deposit: 2 months maximum, and strict refund deadlines
The deposit is capped at 2 months' rent excluding charges (3 months before the reform). It can take several forms: bank transfer, bank guarantee, surety, insurance with the landlord's agreement, or the State guarantee for eligible households. The landlord cannot refuse a first-demand bank guarantee.
The real novelty of 2024 is the refund timeline:
| Step | Rule |
|---|---|
| First half | Refunded within one month of key handover, if the exit inventory is compliant and there is no claim |
| Balance | At the latest one month after receipt of the service charge statements (or approval of the co-ownership accounts) |
| Deductions | Only sums due and justified with supporting documents within the deadline |
| Late-refund sanction | After formal notice: a surcharge of 10% of the monthly rent per month of delay commenced |
If the property is sold, the deposit is transferred by operation of law to the new owner.
Lease duration: the fixed term that becomes open-ended
The lease can be fixed-term or open-ended; without a written contract (old leases), it is presumed open-ended. Key rule since 2024: any lease reaching its end without valid termination is extended for an indefinite duration. A "one-year" lease therefore does not stop by itself after one year: without notice given in due form, it continues, without any time limit.
Rent and charges: what the landlord can (and cannot) bill
Rent is capped by law (5% of the invested capital, one adjustment every 2 years, increases limited to 10%): the detailed calculation is in the CARMO blog article how much can you raise the rent, and the state of the debate on tighter control in our article on rent caps and the rent register. Note: automatic rent indexation clauses are deprived of effect, and the supplement for a furnished home is capped at 1.5% of the price of furniture less than 10 years old.
On charges, the list is exhaustive: only energy consumption, routine maintenance of the home and common areas, minor repairs and taxes linked to the use of the home can be recharged, all justified by a statement with supporting documents. The landlord keeps: property tax, the energy performance certificate, the building's insurance and major repairs.
Agency fees: the 50/50 split is the rule
For any lease concluded since 1 August 2024 with the involvement of an estate agent or another third party, fees are split in half between landlord and tenant. The law provides no exception, and any contrary clause is automatically void.
Termination: who can leave, who can end the lease, and how
The tenant can terminate with 3 months' notice, at expiry for a fixed-term lease, at any time for an open-ended lease (a rule confirmed by the Housing Ministry's official FAQ).
The landlord can only refuse the lease's extension for three reasons: personal need (occupying the home themselves or having it occupied by a relative up to the 3rd degree), the tenant's failure to meet their obligations, or other serious and legitimate reasons. The law states in black and white that the transfer of ownership is not a valid reason: selling the home does not allow the tenant to be evicted; the lease follows the property.
Notice for personal need follows strict formalities, on pain of nullity: registered letter with acknowledgment of receipt, reasoned, with supporting documents, reproducing the legal text, and 6 months' notice. The tenant can ask the justice of the peace for an extension (up to 12 additional months), and a buyer purchasing to occupy must give notice within 3 months of the acquisition, for a departure at the latest 12 months after the letter. A notice based on a fabricated reason is expensive: damages start at a minimum of 12 months' rent.
The inventory of fixtures: your best insurance
Whenever a rental deposit is stipulated, a written, adversarial entry inventory must be signed at the latest on the day of moving in. Without it, the tenant is presumed to have received the home in good condition. On departure, the entry/exit comparison, normal wear deducted, conditions the refund of the deposit. In case of disagreement, an independent third party (bailiff, estate agent, architect) can be appointed.
Flat-sharing in brief
Since 2024, flat-sharing has its own legal regime: a single lease signed by all flatmates with the landlord's agreement, a mandatory written flat-share pact between flatmates, and joint and several liability of all towards the landlord. The subject deserves its own guide: we are dedicating a full article to it.
In case of dispute: rent commission and justice of the peace
For a disagreement on the rent or the advances on charges, your municipality's rent commission has jurisdiction: you must first notify your intention in writing to the other party, wait one month without agreement, then file your request with the municipal executive (inadmissible during the first 6 months of the lease). The commission attempts conciliation then decides within 3 months; an appeal to the justice of the peace is open for one month. All other lease disputes (termination, deposit, eviction) go directly to the justice of the peace.
If you are a landlord, if you are a tenant
If you are a landlord
A compliant lease is your first protection: the 8 particulars, a careful inventory, a documented charge statement and respected refund deadlines (the 10% surcharge per month of delay hurts quickly). Have your old lease templates reviewed: many contracts still in use predate the reform and contain clauses that are now void.
If you are a tenant
Check the 8 particulars before signing, insist on the entry inventory, and know your three key protections: deposit limited to 2 months, regulated rent increases, and the impossibility of being evicted because of a sale. A poorly formalised personal-need notice is void: have it checked before moving out.
Frequently asked questions
Is a verbal lease still valid in Luxembourg?
Verbal leases concluded before 1 August 2024 remain valid. Since that date, any new residential lease must be in writing, on pain of nullity.
What is the maximum rental deposit?
Two months' rent excluding charges, for any lease concluded since 1 August 2024. The landlord cannot refuse a first-demand bank guarantee.
When must the deposit be refunded?
Half within one month of key handover if the exit inventory is compliant, the balance at the latest one month after the charge statements. In case of delay after formal notice, a surcharge of 10% of the monthly rent applies per month of delay commenced.
Can the landlord terminate the lease to sell?
No. The law states that the transfer of ownership is not a ground for termination: the lease follows the property and binds the buyer. Only a buyer who wants to occupy the home can give notice, within 3 months of the purchase, with 6 months' notice.
By how much can the rent increase?
At most one adjustment every 2 years, capped at 10%, never exceeding 5% of the revalued invested capital. Automatic indexation clauses are deprived of effect.
Who pays the agency fees for a rental?
Since 1 August 2024, they must be split in half between landlord and tenant, without exception; any contrary clause is void.
What to remember: the 2024 reform rebalanced the lease in favour of the tenant, but a rigorous landlord has nothing to fear: a complete written lease, an inventory, justified statements and notices in due form. The real risk lies elsewhere: continuing to use a pre-2024 lease template with clauses that are now void. That is the first thing we check in rental management.
Request my free valuationRead: raising the rent, the guide
Sources and legal basis
- Amended law of 21 September 2006 on residential leases, consolidated version of 1 August 2024 (Legilux)
- Law of 23 July 2024 (Mémorial A No 311, Legilux)
- Ministry of Housing: official lease FAQ and lease page
- Guichet.lu: concluding a lease; lease termination; inventory of fixtures
By David Carmo, founder of CARMO Immobilier, has been a real estate professional since 2008. A former member of the board of directors and disciplinary council of the Chambre Immobilière du Grand-Duché de Luxembourg, he is today a founding member and board member of the Fédération des Agents Immobiliers (FAI) and a trainer at the Académie de l'Immobilier.
This article is for information purposes and does not constitute legal advice. Check the legislation in force and consult a professional before any decision.