Buy to let: will it pay?

What you put in, what is left each month after the loan, and where you stand when you sell. Luxembourg buying costs, today’s rates and the legal rent cap are built in.

Start from an example

The flat

Commune

Living area

Price

Our estimate for this size in Luxembourg-Ville. Replace it with the asking price.

The rent

Rent per month, without charges

Advertised rents for this size in Luxembourg-Ville (Observatoire de l’Habitat). Asking rents, not signed leases.

Legal cap for this purchase: €3,473 a month.

How the cap works →

The loan

Loan, share of the price

Up to 80% of the price for a home bought to let.

Rate

Average for new loans fixed 10+ years, 2026-09 (BCL). Today’s rates by fixed period →

Term

Our assumptions1 month(s) empty · insurance 3% · maintenance 1% · sold after 10 years · value 0%/yr

Running costs

Months empty a year

Insurance

Of the rent.

Maintenance

Of the value, a year.

Condo charges you keep, per month

The part the tenant does not pay back: works fund, syndic fees. See the condo’s yearly accounts.

Property tax, per year

From the commune’s bill.

Extra costs when you buy

Works before letting

Own funds for a home with works →

Agency fee paid by you

Usually paid by the seller in Luxembourg.

Holding it

Years before selling

Value growth, your assumption

Rent growth, your assumption

We do not forecast prices or rents: 0% unless you enter your own figure. Selling costs: 3.51% (agency fee and VAT).

Each month, year 1

−€1,128

The rent does not cover the loan and the costs: you add €1,128 a month from your own pocket. It breaks even at a rent of €4,402.

Rent, €3,130 a month

Empty months, costs and loan, €4,258 a month

Cash needed on day one: €217,540; Deposit, buying costs and works.
Yearly return over 10 years: −1.9%; Everything in and out, the sale included.
Gross yield: 4.9%; A year’s rent ÷ the price.
Net yield: 3.1%; After empty months and running costs.

Stress test

Tap to see what happens to the figures above.

Where the rent goes

Each month in year 1.

Rent, €3,130 a month

Empty months, costs and loan, €4,258 a month

Rent€3,130
You top up€1,128

Lost to empty months€261
Running costs€736
Loan payment€3,262

Rent to break even: €4,402/month; The rent at which you neither add nor keep money.
Rent ÷ loan payments: 65%; The rent left after costs pays 65% of the loan payments (DSCR).
Cash-on-cash, year 1: −6.2%; Year 1 cash flow ÷ the cash you put in.
Loan payment: €3,262/month; €616,000 over 25 years.

If you sold after each year

Your gain or loss: the sale after costs and the loan left, plus the cash flow so far, minus what you put in.

If you sold after each year
Year	Value −2% a year	Value flat (yours)	Value +2% a year
0	−€90,567	−€90,567	−€90,567
1	−€104,381	−€89,521	−€74,662
2	−€117,144	−€87,877	−€58,015
3	−€128,843	−€85,609	−€40,598
4	−€139,459	−€82,692	−€22,384
5	−€148,975	−€79,100	−€3,342
6	−€157,372	−€74,805	+€16,557
7	−€164,629	−€69,778	+€37,347
8	−€170,724	−€63,989	+€59,061
9	−€175,634	−€57,406	+€81,732
10	−€179,334	−€49,997	+€105,397

Years · Scenarios to compare, not forecasts.

Cash flow, all years: −€135,370
Sale price after 10 years: €770,000
Loan left to repay: €440,060
In hand after the sale: €302,913
Profit over the period: −€49,997

Next steps

Rate alertsAn e-mail when home-loan rates rise.Formal valuationA signed report by a qualified surveyor, for a purchase or a mortgage.

How it is worked out

Registration and transcription (7%): €53,900
Notary and admin fees: €9,640
Loan: €616,000
Rent collected, year 1: €34,430
Running costs, year 1: − €8,827
Loan payments, year 1: − €39,140

Net yield: rent after empty months and running costs, on the price plus buying costs and works. Before tax.

Indicative figures before tax, not financial advice. Rental income is taxed in Luxembourg; ask your bank and a tax adviser about your own case.