The 2026 Cost of Renting in Luxembourg: What to Expect

Renting in Luxembourg has always been a financial commitment, but 2026 brings a specific set of challenges and slight improvements. With vacancy rates hovering below 2% in the capital, competition remains fierce. However, recent legislative changes have shifted some upfront burdens away from tenants.

Understanding these costs before you sign a lease is vital. Transparency is often missing in traditional listings, where the advertised price is rarely the final amount leaving your bank account.

Average rent prices

The market has seen a steady increase as we settle into 2026. While growth has slowed slightly compared to previous years, prices in Luxembourg City remain among the highest in Europe.

For a standard studio in the capital, you can expect to pay between €1,500 and €1,600 per month. If you require a one-bedroom apartment, averages have climbed to approximately €2,400.

These figures represent base rent only. They do not include the monthly charges for common areas, which can add another €200 to €300 to your monthly outlay.

Deposit requirements

One positive shift for tenants is the cap on security deposits.

Legislation effective from late 2024 now strictly limits rental guarantees to a maximum of two months' rent. Previously, landlords could demand up to three months, which created a massive barrier to entry.

For a €2,000 apartment, this reduces your upfront deposit requirement from €6,000 to €4,000. While still significant, it eases the initial liquidity needed to secure a home.

Agency fees split

Another critical change involves the commission paid to real estate agencies.

Historically, the tenant paid 100% of the agency fee (usually one month's rent plus VAT). The new law mandates a 50/50 split between the landlord and the tenant.

This means if the agency fee is €2,000, you are now only legally responsible for €1,000. Be wary of agencies or landlords attempting to circumvent this by adding "inventory fees" or administrative charges.

The hidden costs

Beyond the headline rent, standard long-term leases come with variable costs that make budgeting difficult. In a traditional contract, "rent" is just the starting point.

• Common charges: These cover elevator maintenance, hallway cleaning, and garbage collection but are often estimated and adjusted annually.
• Utilities: Electricity, heating, and water are usually separate contracts you must manage yourself.
• Internet: A high-speed connection typically costs €50-€70 monthly.
• Insurance: Mandatory rental risk insurance is an extra annual cost.

StaysCo temp housing

We believe your arrival in Luxembourg should be predictable. That is why our temporary housing model operates differently from the standard long-term market.

For our temporary stays, the price you see is "all-in".

• One bill: Your rent includes high-speed Wi-Fi, electricity, heating, water, and insurance.
• No agency fees: You deal directly with us for these units. This eliminates the commission entirely.
• Flexible terms: Perfect for your first few months while you settle in, avoiding the rigid lock-ins of standard leases.

Please note that this pricing model applies specifically to our short-term housing. If you transition to a standard long-term lease later, whether through us or another agency, the pricing structure will revert to the market standard described above (base rent plus separate charges).

How StaysCo helps

We remove the friction from your move. Whether you need an all-inclusive temporary landing pad or guidance navigating the long-term market, we ensure you have full transparency on costs before you commit.

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