LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard and Benjamin Marthoz, Stibbe
1. General 1.1 Main Sources of Law
• the Law of 30 July 2021 on the Housing Pact 2.0; • the Law of 7 January 2022 on accessibility for all to places open to the public, public roads and collective residential buildings; and • the Law of 7 August 2023 on individual hous - ing subsidies. Regarding real estate investments, the main leg - islation comprises: • the Law of 15 June 2004 on investment com - panies in risk capital (SICARs); • the Law of 5 August 2005 on financial collat - eral arrangements (the “Collateral Law” ) • the Law of 13 February 2007 on specialised investment funds (SIFs); • the Law of 12 July 2013 on alternative invest - ment fund managers (AIFMs); • the Law of 17 December 2010 on undertak - ings for collective investment (UCIs); • the Law of 23 July 2016 on reserved alterna - tive investment funds (RAIFs); and • the Law of 19 December 2020 on the tempo - rary adaptation of certain procedural rules in civil and commercial matters. Several of these laws are expected to be modi - fied in the coming months. 1.2 Main Market Trends and Deals In 2024, Luxembourg’s real estate sector experi - enced a notable shift, characterised by evolving buyer preferences, supportive government poli - cies and broader economic factors. The market is now showing signs of stabilisation, reinforcing its reputation as a safe and stable environment for real estate investment. Looking ahead to 2025, potential interest rate cuts may gradually improve financing condi - tions, stimulating transactions for both investors
The Luxembourg Civil Code regulates the main aspects of real estate law in Luxembourg. It cov - ers ownership, mortgages and leases. The following legislation also applies: • the Law of 10 August 1915 on commercial companies, as amended; • the Law of 17 April 2018 on country planning, as amended; • the Law of 10 June 1999 on classified estab - lishments, operating permits and the com - modo-incommodo procedures regulating the security, environmental and technical aspects of construction, as amended; • the Regulation of 5 May 2012 on energy per - formance of residential and functional build - ings; • the Law of 19 July 2004 on communal plan - ning and urban development, as amended; • the Law of 22 October 2008 on the right of superficies and emphyteusis, as amended; • the Law of 19 December 2008 on water, as amended; • the Law of 18 July 2018 on the protection of nature and natural resources, as amended; • the Law of 15 December 2020 on the climate, as amended; • the Law of 21 June 1976 on noise control, as amended; • the Law of 7 August 2023 on individual hous - ing subsidies; • the Law of 7 August 2023 on affordable hous - ing and amending the Law of 25 February 1979 on housing assistance; • the amended Law of 19 July 2004 on munici - pal planning and urban development; • the amended Law of 19 July 2004 on urban planning and urban development;
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