Selling Inherited Property in Luxembourg

Inheriting property in Luxembourg often raises the question of selling it. Between estate procedures, taxation and coordination between heirs, here is a complete guide to navigate this delicate situation.

Preliminary steps before selling

Estate settlement

Before any sale, the estate must be settled:

• Certificate of heirship: establishes who the heirs are
• Property certificate: transfers property to heirs
• Estate declaration: to be filed within 6 months
• Payment of duties: before any property transfer

Inheritance tax in Luxembourg

Rates vary according to relationship:

• Direct line (children, parents): 0% to 5%
• Between spouses/partners: 0% to 5%
• Siblings: 6% to 15%
• Other heirs: up to 48%

Selling in joint ownership

Agreement of all co-owners

If several heirs share the property:

• Sale requires agreement of all co-owners
• Each heir will receive their share of the price
• A common agent can be appointed
• In case of disagreement, court action possible

Solutions in case of deadlock

If an heir refuses to sell:

• Buyout: one heir buys out the others
• Judicial partition: court orders the sale
• Mediation: find an amicable agreement

Sale taxation

Capital gains

Important points for inheritance:

• Reference value is that declared in the estate
• No "reset" of holding period
• Period runs from acquisition by the deceased
• If deceased held for +5 years: exemption possible

Practical aspects

Condition of inherited property

Often, inherited property requires:

• Clearance and cleaning
• Compliance updates (electrical, CPE)
• Minor renovation work
• Complete technical survey

Sellect.lu tips

For a successful inheritance sale:

1. Complete estate formalities before selling
2. Designate a single point of contact among heirs
3. Get a professional valuation
4. Consult a notary for taxation
5. Take the necessary time despite emotional pressure