The rental deposit in Luxembourg

The rental deposit cannot exceed 2 months' rent. This has been the rule since the reform of the residential lease law (law of 23 July 2024), in force since 1 August 2024: before, it could reach 3 months.

The lease itself must be in writing, or it is void.

The law allows several forms:

• a bank guarantee, with the money blocked in a special account;
• a direct transfer to the landlord's account;
• a guarantee provided by the state (see below);
• a rental guarantee insurance policy, with the landlord's agreement;
• cash, only if you choose it: the landlord cannot impose it.

If the exit inspection matches the entry inspection (apart from normal wear) and everything is paid, the deposit is returned in two stages:

• half within one month at most after you hand back the keys, in person or by registered letter;
• the balance at the latest within the month after the service-charge statements are received or the building's annual accounts are finally approved.

Yes, if the exit inspection does not match the entry inspection or the landlord disputes the return. The landlord may then keep the amounts still owed and those they might have to pay in your place, provided they justify them with documents within one month.

Send the landlord a formal notice by registered letter with acknowledgement of receipt. If the deposit is still not returned on time, the unpaid part is increased by 10% of the monthly rent for each started month of delay. This increase does not apply if the delay is your fault.

If the landlord still does not pay, you can take the matter to the competent justice of the peace (lease matters).

Yes. The Ministry of Housing can provide the guarantee your landlord asks for. In return, you save the amount over 3 years, through a standing order of 1/36 of the guarantee, into a blocked account at an approved bank.

The main conditions:

• be an adult, hold a right of residence of more than 3 months in Luxembourg and be in the national register;
• have had a regular income for at least 3 months and stay under the income ceiling set by the law of 7 August 2023;
• rent on the private market in Luxembourg, as your main residence, and not from your parents or children or a public body;
• a rent excluding charges of no more than 50% of household income, and a deposit of at most 2 months' rent excluding charges.

Fill in the application for aid to finance a rental guarantee, online or as a PDF, and send it with the supporting documents to the Guichet unique des aides au logement (11, rue de Hollerich, L-1741 Luxembourg, tel. 80 02 10 10). Before signing a lease, you can ask for a certificate stating the maximum rent and deposit for you; it is valid for 3 months.

This aid can be combined with the rent subsidy (subvention de loyer).

If an estate agency or another intermediary is involved, its fees and commissions are split equally between the landlord and the tenant.