# Luxembourg rent cap: invested capital, revaluation and the historical proposal

For a monthly base rent, the calculator shows the minimum revalued capital that the rent implies at 5 percent a year. For a dwelling, the owner tab computes a maximum rent from the price, the dates and the works you enter, and shows every step. Neither result is a legal verdict.

[Luxembourg rent cap: invested capital, revaluation and the historical proposal](https://chathome.lu/en/insights/plafond-loyer-capital-investi)
Sources checked: 2026-10-14

## Key takeaways in 30 seconds

- Annual base rent is capped at 5% of invested capital after revaluation and age deductions. Recoverable service charges and any separately justified furniture supplement are not this base rent.
- The ministry’s earlier reform note used 3.5% and a different capital calculation. Current official guidance still states 5%. This calculator does not apply the historical rate or its coefficients.
- Acquisition or construction cost and date; documented land value; eligible works and invoice dates; building completion year; base rent separately from charges and furniture. An advertised sale price or a market valuation is not proof of invested capital.

## Start with the base rent

Use rent excluding service charges and any furniture supplement. The tenant view works backwards from rent to the implied net revalued capital. It cannot establish the owner’s actual investment or prove that a rent is unlawful. Asking-price medians and the apartment’s current market value are different measures.

## Rebuild the documented investment

The owner view uses acquisition or construction expenditure, its date, the documented land value and eligible works with their own dates. Revalue each amount with the applicable coefficient and apply the age adjustment to the relevant building expenditure. A single coefficient applied to today’s market price is not the statutory calculation.

## Check the evidence before a dispute

Collect the deed, invoices, completion date, lease and charges statement. Keep rent-cap age adjustments separate from income-tax rental depreciation. The full tool includes the published coefficient table and calculation steps; use them to prepare a documented discussion with the owner or the competent rent commission.

## Worked examples

| Monthly base rent | Annual base rent | Implied net revalued capital |
| --- | --- | --- |
| €1,000.00 | €12,000.00 | €240,000.00 |
| €1,500.00 | €18,000.00 | €360,000.00 |
| €2,000.00 | €24,000.00 | €480,000.00 |
| €2,500.00 | €30,000.00 | €600,000.00 |
| €3,000.00 | €36,000.00 | €720,000.00 |

[Open the full tool and methodology](https://chathome.lu/en/financial-tools/plafond-loyer)

## Frequently asked questions

### Does this result show whether my rent is legal?

No. The tenant check shows the capital that the rent implies. The owner tab computes a ceiling only from the figures you enter, and it does not check them against a deed or an invoice.

### Why does the calculator use invested capital, not market value?

The calculator starts from the price and the works you enter, revalued by year. It does not use a market estimate.

### What can I do if the rent looks higher than the calculated ceiling?

Ask the landlord for the invested-capital figures. The calculator knows only the figures you enter, so a result from partial figures is not a complete check.

## Official sources

- [Guichet.lu](https://guichet.public.lu/fr/citoyens/logement/location/contrat-litige/conclure-contrat-bail-location.html)
- [Legilux — article 3](https://legilux.public.lu/eli/etat/leg/loi/2006/09/21/n1/consolide)
- [Ministère du Logement — 7642](https://logement.public.lu/dam-assets/documents/politique/bail-loyer/note-explicative.pdf)
- [Administration des contributions directes (ACD)](https://impotsdirects.public.lu/dam-assets/fr/formulaires/pers_physiques/2026/700f-2026.pdf)
- [Ministère du Logement](https://logement.public.lu/dam-assets/documents/publications/bail/Brochure-capital-investi-Calcul-du-plafond-legal-du-loyer.pdf)
- [Legilux](https://data.legilux.public.lu/eli/etat/leg/loi/2024/07/23/a311/jo)

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