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What Financial Subsidies Are Available for Renting Accommodation in Luxembourg?
In Luxembourg, anyone wishing to rent a flat or a house can access aid to help finance the operation. At a time when it is sometimes difficult to find accommodation in the country, particularly due to tensions on the market and offers that are often less numerous than requests, it is important to be aware of these schemes, which allow you to consolidate your profile and have greater financial flexibility.
Aid to finance the rental deposit, to cover an unavoidable expense
When signing a lease, the tenant must logically pay a security deposit to the owner or landlord. This sum is usually debited and can go up to three times the rent. It protects the landlord from possible damage and expenses exceeding accrued costs, among other things.
If you face difficulties in financing this deposit, which can be up to three times your monthly rent, you may apply for aid from the Luxembourg government. All you have to do is fill in the official application form and submit it to the Guichet unique des aides au logement (one-stop shop for housing assistance).
This aid can only be granted if the lease you sign is fully compliant with Luxembourg law, and relates to an accommodation that you will use as your permanent primary residence.
In order to benefit from the aid, you must not be the owner, co-owner or usufructuary of, or the holder of an emphyteutic right or right of superficies on any other property, whether in Luxembourg or abroad.
Aid to finance the rental deposit is available to anyone of legal age who have entered into a conditional deposit agreement with a financial institution, provided that the rent does not exceed 40% of the monthly income and that the tenant's income does not exceed certain thresholds.
Rent subsidy, a monthly help
While the aid to finance the rental deposit can only be obtained once on signing the lease, there is another solution to reduce your costs throughout the tenancy: the rent subsidy.
The amount of such subsidy ranges between approximately €130 and €300 per month, calculated according to the resources and composition of the household of each beneficiary. This aid is paid monthly, so that those who benefit from it can have more purchasing power.
In order to receive this sum every month, it is essential to rent a dwelling on the private market that meets all the safety and health standards in force, and not to rent it to an ascendant or descendant. As with the rental deposit, the rent subsidy is not granted to any owner, co-owner or usufructuary of, or the holder of an emphyteutic right or right of superficies on any other property (in Luxembourg or abroad).
To benefit from the rent subsidy in Luxembourg, you must sign a lease that meets all the legal requirements of the Grand Duchy, bearing in mind that the net amount of your rent must exceed 25% of your family's income. Besides, this scheme can only be applied for if you have had a regular income for at least 3 months.
As with the rental deposit, you should apply for this grant via the Guichet unique des aides au logement (one-stop shop for housing assistance). Do not hesitate to apply as soon as you have found accommodation: while the first scheme covers an essential expense as soon as you sign the lease, the second can help you pay the rent every month, from the moment you move in.
