Agency fees and rental deposit in Luxembourg

against 3 sources· Updated on July 28, 2026

In brief

Since 1 August 2024: the agency commission is split equally between landlord and tenant regardless of who mandated the agency; the rental deposit is capped at two months' rent (previously three); the rent can only be adjusted every two years, with a maximum increase of 10%. For the median rent of €1,900 observed on chathome.lu on 27 July 2026, the commission share payable by you is approximately €1,112 instead of approximately €2,223.

The short answer

Since 1 August 2024, three things that many landlords and agencies still asked for are no longer allowed in Luxembourg:

Making you pay the full agency commission. The law of 23 July 2024 provides that "the fees and charges of these persons are shared equally between the landlord and the tenant" as soon as a real estate agent or other third party is involved in the rental. Regardless of who mandated the agency: each pays half.
Requiring three months' rental deposit. The legal maximum has been reduced from three months to two months' rent.
Increasing the rent whenever the landlord wishes. The rent can only be adjusted every two years, and "the rent increase cannot exceed 10 percent".

These rules apply to residential leases. They have been in force for almost two years at the time this page is written.

What the sharing of the commission concretely means

The agency commission for rentals corresponds, by market practice, to approximately one month's rent excluding charges plus 17% VAT. This amount is not set by law — only its distribution is.

Of the 1,535 active rental listings published on chathome.lu on 27 July 2026, the median asking rent is €1,900 per month (1,402 listings with a displayed price; first quartile €1,490, third quartile €2,600).

For this median rent:

customary commission: €1,900 + 17% VAT ≈ €2,223;
legally your share since 1 August 2024: ≈ €1,112;
before the reform, a tenant charged the full amount paid ≈ €2,223.

What if the contract says otherwise?

A clause that puts the entire agency fee on you contradicts the law. Similarly, a three-month rental deposit in a lease signed after 1 August 2024 exceeds the legal cap. Signing does not make these clauses valid.

The lease contract must also be written and mention, among other things, the rent excluding charges, the amount of advance payments or flat-rate charges, any additional charge for furniture, and the amount of the rental deposit.

The return of the deposit is now penalised

The reform also regulated the repayment of the deposit at the end of the lease: in case of delay, the landlord must pay an additional amount equal to 10% of the monthly principal rent for each monthly period started late, unless the delay is attributable to the tenant.

If your deposit has not been returned, the procedure is detailed on our dedicated page: rental deposit not returned.

Ce qui a changé au 1er août 2024

Loi du 23 juillet 2024 (A311) — montants chathome.lu calculés le 27 juillet 2026

50 / 50

Partage de la commission d'agence

quel que soit le mandant

2 mois

Garantie locative maximale

contre 3 mois auparavant

10 % / 2 ans

Hausse de loyer maximale

adaptation tous les deux ans

≈ 1 112 €

Votre part de commission

loyer médian 1 900 €, TVA 17 %

Source: Loi du 23 juillet 2024, Journal officiel A311 ; corpus locatif chathome.lu, n = 1 535 annonces actives, calculé au 27 juillet 2026 (as of 2026-07-27)

Furnished accommodation: the supplement is capped

For furnished accommodation, the rent supplement must be stated separately from the rent in the lease and "cannot exceed 1.5 percent of the total amount of invoices for the furniture furnishing the rented accommodation". Only furniture whose invoices date from less than ten years before the date of conclusion of the lease may be taken into account.

What to do in practice

Ask for the agency invoice and check that only half is charged to you.
Check that the requested deposit does not exceed two months' rent.
Have the furniture supplement stated separately if the accommodation is furnished.
In case of disagreement on the amount of rent, the parties may refer the matter to the rent commission of the municipality; it must rule within three months, failing which the justice of the peace may be directly seized.

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Key Takeaways

1A clause putting the entire agency commission on you contradicts the law.
2A three-month deposit in a lease signed after 1 August 2024 exceeds the legal cap.
3The amount of the commission is not capped by law — only its distribution is.
4Signing a lease does not validate a clause contrary to the law.

Frequently Asked Questions

Who pays the agency commission for a rental in Luxembourg?▼

Landlord and tenant, half each. The law of 23 July 2024, in force since 1 August 2024, provides that when a real estate agent or other third party is involved in the rental of a dwelling for residential use, the fees and charges of these persons are shared equally between the landlord and the tenant. This applies even if only the landlord mandated the agency, and even if you contacted it.

Is the agency commission capped?▼

No. The law regulates the distribution of the commission, not its amount. By market practice, it generally corresponds to one month's rent excluding charges plus 17% VAT, but this level is a matter of practice and not a legal cap. Ask for the invoice and check that only half is charged to you.

What rental deposit can be asked of me?▼

A maximum of two months' rent. The law of 23 July 2024 replaced the word "three" with "two" in the provision capping the rental deposit. A three-month deposit stipulated in a lease concluded since 1 August 2024 exceeds this cap.

Can my landlord increase the rent every year?▼

No. The rent can only be adjusted every two years, and the increase cannot exceed 10%. This two-year period does not end with a change of landlord; it ends automatically in the event of a change of tenant. If the increase exceeds 10%, the tenant may send a complaint by registered letter to the landlord.

What if the signed lease provides for something other than what the law says?▼

Having signed does not make a clause contrary to the law valid. Start by writing to the landlord or agency citing the text. In case of disagreement on the amount of rent, the parties may refer the matter to the rent commission of the municipality, which must render its decision within three months; failing that, the justice of the peace may be directly seized.

Sources

Loi du 23 juillet 2024 portant modification de la loi modifiée du 21 septembre 2006 sur le bail à usage d'habitation, Journal officiel du Grand-Duché de Luxembourg A311, en vigueur au 1er août 2024 — https://legilux.public.lu/eli/etat/leg/loi/2024/07/23/a311/jo (consulté le 27 juillet 2026)
Ministère du Logement et de l'Aménagement du territoire, communiqué « Révision de la législation sur le bail à loyer », 10 juillet 2024 — https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2024/07-juillet/10-logement-revision-bail-loyer.html (consulté le 27 juillet 2026)
Corpus des annonces de location actives de chathome.lu, calculé au 27 juillet 2026 (as of 2026-07-27 ; n = 1 535 annonces actives, dont 1 402 avec un prix affiché)

Methodology

The legal rules cited come from the text of the law of 23 July 2024 published in the Official Journal (A311), read directly in its official version and not in a secondary summary; each rule is assessed as of the publication date of this page, 27 July 2026, the law having been in force since 1 August 2024. The rent amounts come from rental listings whose status is "active" on chathome.lu as of the calculation date, 27 July 2026 (as of 2026-07-27): n = 1,535 active listings, of which 1,402 display a strictly positive price, the only subset used for the median and quartiles. Deactivated listings (rented, withdrawn) are excluded. The commission estimate applies the market practice of one month's rent excluding charges plus Luxembourg VAT at 17%, then the division by two imposed by the law; this is a quantified illustration, not a regulated tariff.

Limitations

The rents used are ASKING rents in the listings, not rents actually concluded; they are generally higher than the latter. They describe the supply published on chathome.lu on a given date and not the entire Luxembourg rental market. The commission amount of one month's rent plus VAT is an observed market practice and not a rule: your agency may charge a different amount, the law only regulating the equal sharing. This page describes the law applicable to residential leases and does not constitute legal advice: a specific case (commercial lease, cohabitation, furnished accommodation, lease prior to 1 August 2024) may require a different analysis. The provisions cited are those in force on 27 July 2026 and may be amended subsequently.

Agency fees and rental deposit in Luxembourg: what can legally be asked of you