What does a holiday rental in Luxembourg earn?
Across the markets Terrivio tracks, gross yields in Luxembourg typically range from 3.5–5% and net yields from 2–3% after operating costs and acquisition costs. The spread between the two is the whole story: platform fees, cleaning, management, utilities, insurance and local taxes usually consume 35–50% of gross revenue.
Worked example: a €700,000 property at €150 per night and 55% occupancy books about 201 nights and grosses roughly €30,150 a year (4.3% gross yield). After 25% variable costs and €6,000 fixed costs, NOI is about €16,613 — a net yield of 2.2% on the total investment of €756,000.
Purchase costs and taxes in Luxembourg
Budget roughly 8% on top of the asking price for acquisition costs. The main component is the 6% registration + 1% transcription duty. These costs are sunk on day one, which is why Terrivio divides NOI by the total investment — not the asking price — to compute net yield.
Rental income is taxed at progressive rates up to 42% plus solidarity surcharge, after depreciation and cost deduction. Property tax is very low, but a new national property tax reform is under discussion.
Tourist tax: €1–3 per night in most communes. It is normally collected from guests but affects your competitive nightly rate.
Short-term rental rules in Luxembourg
Tourist accommodation must be declared to the Ministry of the Economy (tourism directorate) and to the commune; Luxembourg City applies its zoning rules to furnished tourist lets.
Regulation is the biggest single risk in European STR investing. Terrivio's risk score weights regulatory risk at 25% and flags night caps, licence requirements and enforcement intensity for every analysed listing.
Where to look: cities and portals in Luxembourg
Popular short-term rental locations include Luxembourg City, Esch-sur-Alzette, Remich (Moselle), Vianden and Echternach. Each has a different seasonality profile — Terrivio shows the 12-month revenue curve so you can see how much of the year carries the return.
Listings are mostly published on atHome.lu, Immotop.lu and Wortimmo. Terrivio reads these portals directly: paste the listing URL and the pipeline extracts price, size, rooms and location automatically.
How to analyse a Luxembourg listing with Terrivio
- Copy the listing URL. Open the property on atHome.lu or another supported portal and copy the address bar URL.
- Paste it into Terrivio. Terrivio scrapes the listing, geocodes the address and pulls market ADR and occupancy for the segment (property type, bedrooms, location).
- Review yield and cashflow. You get gross and net yield, NOI, monthly cashflow, break-even occupancy and 10-year IRR — using Luxembourg-specific acquisition costs and taxes.
- Check risk, tax and rules. The report shows the 10-dimension risk score, the recommended tax regime for Luxembourg and the STR rules that apply to the exact city.
Frequently asked questions
Is a holiday home in Luxembourg a good investment in 2026?
It depends on the micro-location and on regulation. Typical net yields are 2–3%; the best results come from locations with year-round demand and clear licensing. Always model the net figure, not the gross.
How much are purchase costs in Luxembourg?
Plan for roughly 8% of the price: 6% registration + 1% transcription duty, plus notary, registry and agent fees where applicable.
Do I need a licence to rent out short-term in Luxembourg?
Tourist accommodation must be declared to the Ministry of the Economy (tourism directorate) and to the commune; Luxembourg City applies its zoning rules to furnished tourist lets.
Which Luxembourg property portals does Terrivio support?
Terrivio analyses listings from atHome.lu, Immotop.lu and Wortimmo and 40+ other European portals. Paste any listing URL to start.