Selling an Inherited Property in Luxembourg: Tax, Notary & Timeline (2026 Complete Guide)

When a parent or relative leaves a house or an apartment in Luxembourg, the heirs face grief and, at the same time, formalities with real deadlines. Selling inherited property in Luxembourg is possible — but only after a few steps, and only if every heir agrees.

This guide takes those steps in order: the notary, the declaration of succession, inheritance duties, joint ownership, the tax on the sale and the documents. Every rule comes from official sources (guichet.lu, the AED, the tax administration and the Civil Code). Rules checked October 2026.

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What Happens to the Property When Someone Dies

Under article 724 of the Civil Code, the deceased’s assets — and debts — pass to the heirs from the moment of death.

According to guichet.lu, an heir can accept outright, accept “under benefit of inventory” (sous bénéfice d’inventaire, paying debts only up to the value inherited) or renounce — the last two at the district court registry, within 3 months and 40 days of the death.

guichet.lu adds that acceptance can be tacit — for example when an heir sells a property of the succession. So settle this with the notary before anything goes on the market.

A surviving spouse who inherits alongside children can choose, under article 767-1 of the Civil Code, between the share of the child who receives least (at least a quarter) and the usufruct of the home the couple lived in, with its furniture. The AED gives the same 3 months and 40 days for this option. With a usufruct, the children hold the bare ownership, and a sale needs everyone.

The Notary’s Role

• Looking for a will: a search in the AED’s register of last wishes costs €10 online or €20 on paper (guichet.lu).
• Establishing the heirs and their shares: article 815-11 of the Civil Code states that, failing any other title, each heir’s rights result from the acte de notoriété or the inventory heading drawn up by the notary. Ask your notary which document they will prepare.
• The declaration of succession: a notary is not compulsory but strongly recommended, especially for a complex succession (guichet.lu). For an exempt succession, the AED’s succession office can draft it.
• Later, the partition and the deed of sale.

For cross-border cases, a law of 14 June 2015 implemented EU Regulation 650/2012 and its European Certificate of Succession; your notary will say whether you need it.

The Declaration of Succession and Its Deadline

After the death of a person whose last domicile was in Luxembourg, the heirs and universal legatees file a declaration of succession (déclaration de succession) with the AED office of the deceased’s last domicile. It lists assets and debts and is the basis for inheritance duties.

The deadline runs from the date of death: 6 months for a death in Luxembourg, 8 months elsewhere in Europe, 12 months in America and 24 months in Africa or Asia (guichet.lu adds Australia). The AED’s director can extend it on an heir’s written request, and a declaration can be corrected within six weeks without a fine.

The declaration is due even when no duties are due. The AED is explicit; only a renunciation ends the obligation. For an exempt succession, guichet.lu says it only needs the heirs’ names and the details of the Luxembourg properties they receive.

Usual documents: the heirs’ ID, the death certificate, a cadastral extract less than a year old, any marriage contract and proof of debts. Where duties are due, filing late costs a surcharge of one tenth of the duty, and more if a bailiff’s summons is ignored (AED).

Inheritance Tax on Luxembourg Property: Who Pays What

Duties are calculated on each heir’s net share. Real estate is valued at its probable sale value on the day of death, and the AED can correct the declared value (guichet.lu) — see how property valuations work.

Exempt: what children, grandchildren or parents receive within their legal share; everything between spouses; everything between partners whose declaration was registered at least 3 years before the death; and a succession worth no more than €1,250 net. A direct heir who receives more than the legal share pays 2.5% on the available portion left to them and 5% on any surplus.

Base rates for other heirs: brothers and sisters 6% within the legal share and 15% beyond; uncles, aunts, nephews and nieces 9%, then 15%; great-uncles, great-aunts and great-nephews or nieces 10%, then 15%; anyone else 15%. These rates are increased once a net share exceeds €10,000, on an AED scale from 1/10 up to 22/10. guichet.lu’s example: a sister inheriting a net €550,000 pays 6% increased by 14/10 — 14.4%, or €79,200. Duties are in principle payable within 6 weeks of the AED’s demand.

If the deceased lived abroad but owned property here, the heirs file a déclaration de mutation par décès with the AED office where the property is; only the Luxembourg real estate is taxed, with the same rates and exemptions (guichet.lu). Tax abroad is a question for an adviser there.

Joint Ownership (Indivision): Every Heir Must Agree

Until the estate is divided (partage), the heirs own the property together, in indivision. Article 815-3 of the Civil Code requires the consent of all co-owners for acts of administration and disposal. A sale is an act of disposal, so every heir must agree and sign. They can give one of them a mandate, but signing or renewing a lease needs a special mandate.

An heir who wants to sell only their share to an outsider must first notify the others, who have one month to pre-empt it (art. 815-14). The usual options are to sell together, to let one heir take over the property against a balancing payment (soulte) in the partition, or to keep and rent it by agreement.

What if one heir refuses?

Article 815 states that no one can be forced to remain in joint ownership: a partition can always be requested, unless postponed by a court or by agreement. If an heir refuses, the court decides (art. 823); a property that cannot conveniently be divided is sold by auction (licitation) before the court, or before a notary if all heirs are adults and agree (art. 827). A court can also authorise one heir to act alone if a refusal endangers the common interest (art. 815-5). Speak to a lawyer before taking that route.

Capital Gains Tax When You Sell an Inherited Property

The key rule is in article 102 of the income tax law (LIR): when a property was acquired free of charge — by inheritance, or as a lot in an inheritance partition, even with a soulte — the acquisition price is the one paid by the last owner who bought it, and the heir is deemed to have acquired it at that time. The tax administration repeats this in its form 700. Two consequences:

• The five years count from the deceased’s purchase (or the last purchase before it), not from the death.
• The value in the declaration of succession is not your acquisition price for income tax; it serves the inheritance duties.

More than five years after that purchase

The gain is a bénéfice de cession: the sale price minus the acquisition price revalued with the official coefficient for its year, plus costs linked to the sale (LIR art. 99ter, 102). Two allowances can follow:

• €75,000 per person on a built property inherited in the direct line that the seller’s (or spouse’s) parents used as their main residence, granted once and applied first (art. 130(5));
• €50,000 (€100,000 for spouses taxed jointly), reduced by any amount used in the previous ten years (art. 130(4)).

guichet.lu states that this gain is taxed at half the global rate (at most 21%), plus, in principle, social contributions calculated by the ACD.

Less than five years after that purchase

If the deceased bought less than five years before your sale, the gain may be a speculative gain (bénéfice de spéculation), taxed at the progressive rates — a marginal rate of up to 42% according to guichet.lu — without those allowances. The temporary two-year threshold applied only to certain 2025 sales. Ask a tax adviser or the ACD how this applies to you.

Main residence exemption

It covers the seller’s own main residence (LIR art. 102bis), so it generally does not apply to heirs who do not live there; if you did, ask a tax adviser. Either way, declare the sale to the ACD for the year of the deed (forms 100 and 700) — non-residents too (guichet.lu).

Example (fictional): Two Siblings Inherit an Apartment

Anna and Luca’s mother, a widow, dies in Luxembourg in October 2025 without a will. Her apartment, bought in 2004 for €250,000, was her home. Anna and Luca inherit half each.

• Declaration: due by April 2026 (6 months). Direct line, legal shares: no duties, but still filed.
• Sale: both agree and sign the deed in November 2026 for €650,000. Neither lives there.
• Holding period: counted from 2004 — more than five years, even though they sell about a year after the death.
• Acquisition price: €250,000 × 1.51 (the 2004 coefficient in the LIR text in force on 1 January 2026) = €377,500.
• Gain: €650,000 − €377,500 = €272,500 before deductible costs, so €136,250 each.
• Allowances: −€75,000 and −€50,000 each (if unused in the last ten years) leave €11,250 each, taxed at the reduced rate.

Had their mother bought in 2023, the speculative-gain rules would need checking with a tax adviser. Figures are illustrative only.

Preparing the Sale

• A valuation all heirs accept — our free valuation is a starting point.
• The energy performance certificate (CPE): compulsory when a residential building changes owner without a valid one; valid 10 years; ads must show the energy and insulation classes. Exceptions include a sale for demolition or a public licitation (guichet.lu). See energy class and property value.
• The notary’s document on the heirs, every heir’s ID, the deceased’s title deed, a cadastral extract and, for an apartment, the condominium documents.
• Any lease: if the property is rented, read selling a property with tenants in place.

Every heir then signs the compromis de vente and the deed. In practice the buyer pays the duties and notary’s fees on the deed (see notary fees and closing costs). For the general steps, read how to sell a property in Luxembourg.

A Realistic Timeline, Phase by Phase

No law fixes the total duration; these are the phases and the official deadlines:

• 1. After the death: death certificate, notary, will search.
• 2. Options: accept, benefit of inventory or renounce; the spouse’s choice — 3 months and 40 days from the death.
• 3. Declaration: 6 months from a death in Luxembourg; duties within 6 weeks of the AED’s demand.
• 4. Decision: sell, buy out or keep; valuation and energy certificate.
• 5. Sale: compromis and deed signed by all heirs.
• 6. Tax: declare the sale for the year of the deed.

Checklist for Heirs

• Choose a notary and ask for a will search.
• Settle acceptance of the succession before any sale.
• Find the deceased’s purchase price and date.
• Get a valuation and the energy certificate.
• Agree in writing: contact person, minimum price, costs.
• Ask a tax adviser to estimate the tax before the compromis.

Frequently Asked Questions

Is there inheritance tax between parents and children in Luxembourg?

Not on the legal share: what is received in the direct line (parents, children, grandchildren) is exempt within the legal share. Anything beyond it, for example through a will, is taxed at 2.5% or 5% according to guichet.lu.

Do I pay capital gains tax when I sell an inherited house in Luxembourg?

Possibly. The gain is calculated from the deceased’s purchase price and date (LIR art. 102). After five years, a €75,000 allowance can apply if it was your parents’ main residence, plus the €50,000 allowance; the rest is taxed at half the global rate. The main-residence exemption applies only if it is your own main residence. A tax adviser can calculate your case.

What is the deadline for the declaration of succession?

6 months from a death in Luxembourg; 8 months elsewhere in Europe, 12 in America, 24 in Africa or Asia. The AED can extend it on written request.

Can one heir sell the inherited property alone?

No. The Civil Code requires all co-owners’ consent. An heir can sell their own share to an outsider, but the other heirs have a right of pre-emption.

Does the five-year period start on the date of death?

No. Under LIR art. 102, the heir is deemed to have acquired the property when the deceased (or the last owner who bought it) did.

This article is general information, not legal or tax advice. Every succession is different: the notary, a tax adviser (or the ACD) and, in a dispute, a lawyer are the references for your own case, and the official texts prevail. Rules checked October 2026.

Sources: guichet.lu — declaration of succession, inheritance duties, accepting or renouncing, declaring a property sale, energy certificate; AED — deadlines, exemptions, rates, FAQ; ACD — LIR in force on 1 January 2026 (art. 99bis, 99ter, 102, 102bis, 130), form 700; Civil Code, art. 724, 767-1, 815 to 815-14, 823, 827; law of 14 June 2015.