LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard, Benjamin Marthoz and Tom Storck, Stibbe
The VAT exemption waiver form is to be sub - mitted to the Luxembourg VAT authorities for approval. The standard 17% rate then becomes applicable on the rent. 6.8 Costs Payable by a Tenant at the Start of a Lease The tenant may be liable to settle agency fees to the real estate agents. In addition, the tenant will in principle have to make advance payments for the maintenance of common spaces of the building. 6.9 Payment of Maintenance and Repair All occupants of a building must participate in the maintenance, repair and other costs related to common areas. The proportion of participa - tion in such costs by a tenant depends exclu - sively on the size of the space rented compared Generally, each tenant has its own subscription for utilities like water, sewer, refuse, electricity and telecommunication services. Where appro - priate, each rental unit will have its own meters/ counters for such purposes. Alternatively, cer - tain services may be included in the monthly charges for common spaces. 6.11 Insurance Issues The parties are free to decide who bears the direct cost of insurance policies. The tenant may be liable to take out appropriate insurance cover directly for the rented premises, or the building management may take out policies for the entire building (in which case, the costs are normally reflected in the monthly common charges). The usual mandatory insurance policies (wheth - er taken out by the building management or indi - to the total size of the building. 6.10 Payment of Utilities and Telecommunications
vidual tenants) cover fire, water, storm, other natural forces and glass breakage. In any case, tenants are usually required to take out separate cover for damage to their personal assets and general tort liability for any harm caused to visitors within their rented premises. Issues related to COVID-19 are subject to the specific insurance policies potentially entered into. 6.12 Restrictions on the Use of Real Estate The landlord can limit the use of the premises rented out (eg, for office/administrative use only). Zoning and other legislation may apply and limit the use of premises for commercial, industrial, residential or other use. For certain activities that are qualified as “haz - ardous”, the tenant will also be required to obtain specific authorisations from the compe - tent authorities. 6.13 Tenant’s Ability to Alter and Improve Real Estate Any alteration to the rented premises by the ten - ant is normally subject to the prior approval of the landlord. If alterations are planned from the beginning, they are usually authorised within the framework of the lease agreement. Alterations that would interfere with the normal use of their premises by other tenants or own - ers are generally restricted and will require the additional approval of the building management. For major alterations, building permits from the competent authorities may be required.
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