Real Estate 2025

LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard and Benjamin Marthoz, Stibbe

2.7 Soil Pollution or Environmental Contamination The requirements regarding who is responsible for soil pollution or environmental contamination of a property are integrated into the authorisation to be obtained from the Ministry of Environment (operating permit). The authorities may impose soil survey or clean-up requirements on the owner, user and/ or operator of any land by virtue of other legal frameworks, such as the legislation on classified installations, waste management or environmen - tal liabilities. In terms of responsibilities, the Law of 20 April 2009 on environmental responsibility with regard to the prevention and compensation of environ - mental damage, as amended, provides for the responsibility of the user/operator of the land. The user/operator supports the costs of preven - tion or curative measures ordered by the authori - ties. The Law also includes certain exceptions designed to prevent the user/operator from being held accountable, primarily in situations where a third party is at fault, which must be substantiated with evidence. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law At a national level, the amended Law of 19 July 2004 on municipal planning and urban develop - ment provides rules to control and regulate plan - ning and zoning in Luxembourg, and sets out the division of the country into a general develop - ment plan ( plan d’aménagement général – PAG), corresponding to the administrative division of the country into municipalities (communes). The territories of the municipalities are governed by two main types of zoning plans: the gener - al zoning plan (PAG) and special zoning plans

( plans d’aménagement particulier – PAP). The municipalities are in charge of issuing the PAG and the various PAPs. The PAG divides the municipal territory into vari - ous zones, stating the following for each zone: • how the land is to be used (eg, dwellings, economic activity, green zone); and • the degree of land use (number of houses, green spaces, etc). Specific zones of the PAG may be divided into PAPs that implement and specify the nature and extent of land use in each zone or part of a zone of the PAG. Urban planning law also requires a building per - mit for a wide range of works, including con - struction or reconstruction, the modification or extension of existing buildings, and changing the use of an existing building. Building permits are issued by the mayor of the municipality con - cerned. A building permit may only be issued if the intended building complies with the applica - ble PAG and PAPs. An allotment permit is required in order to divide a plot of land. 2.9 Condemnation, Expropriation or Compulsory Purchase Expropriation takes place by authority of justice, through a declaration in a grand ducal decree. It may relate to all or part of a building or real property rights. It must be guided by reasons of public utility and it is only possible with fair and prior compensation. The state and the municipalities benefit from pre- emptive rights, subject to specific conditions.

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