What law applies to money laundering.jpg

If you're looking to buy, sell, or rent a home in Luxembourg, you can expect to be asked some unexpected questions by your realtor. Not only will they question you on your identity, but also on your wealth, income, and line of work. In fact, it's crucial to understand that the AML (anti-money laundering) law strictly governs the collection and use of this data in the context of the fight against money laundering.

## What the legislation in Luxembourg says about combating money laundering

The prevention of money laundering and the financing of terrorism are the subjects of a first law enacted on November 12, 2004. One further law was passed on October 27, 2010, to further fortify the existing legal framework in this area. Last but not least, the law enacted on August 10, 2018, addresses the information that trustees must collect and maintain for the purpose of thwarting money laundering and the financing of terrorism.

_“Money laundering is the process of trying to hide the true origin of money or other valuables”._

All those working in the financial industry need to take preventative measures in a concerted effort to thwart these illicit activities. Not only do banks have to cope with the necessity to take measures, but so do accountants, notaries, gaming operators, and real estate salespeople. Because of this, you may need to provide a variety of paperwork before beginning your real estate project.

## So, what exactly do real estate brokers have to do to comply with the AML law?

For purposes of the AML law, all real estate brokers are required to do client due diligence by asking a series of questions (previously, the work was only done by banks and notaries).

To that end, it is only reasonable to request that you submit a number of records explicating the nature and scope of your project (financial, family, professional, patrimonial).

Included in the required documentation is a government-issued photo ID, a recent utility bill or bank statement showing your current address, and any relevant documentation for your line of work (such as an employment contract or proof of activity for self-employed professionals).

All reports of suspicious transactions in Luxembourg that may include money laundering or terrorist financing are handled by the FIU (Financial Intelligence Unit), an independent and autonomous body.

_“The Financial Intelligence Unit (FIU) is an autonomous organization responsible for handling all reports of potentially fraudulent financial activity”._

For the record, professionals who "suspect or have reasonable grounds to suspect" a money laundering transaction are obligated to decline the transaction and report it immediately to the Financial Intelligence Unit (FIU). Since real estate agents' responsibilities can be called upon at any time, it's only natural that they take safeguards; if they request full documentation, don't panic, and feel free to ask them any queries you have; they'll be happy to provide an explanation.

What law applies to money laundering?

How to buy property a buyer’s manual.jpg

Looking to make a real estate purchase? Where do I even begin, how do I determine my needs, what is a reasonable cost, and what kind of assistance are out there, and on what criteria? Who are the experts you recommend I talk to? How exactly should I go about penning my purchase offer? There are a lot of unknowns that we will clarify for you.

## Setting your criteria before making a real estate purchase is essential

You hope to buy a house or an apartment someday, but you haven't decided what you'd need. We hope that the list of considerations we have helped you create is complete. If you want to maximize the effectiveness of your research efforts, you should prioritize them based on what you really need, rather than what you want.

## How to determine a fair price for a piece of real estate

Reputable government agencies regularly release a plethora of studies. It is crucial to consult them in order to have an accurate understanding of the market values, in this case the apartment prices by municipality, and to avoid going into talks blind. Particularly in today's ever-increasing market!

## How can I get help with purchasing or constructing a home?

There are a number of programs available from the government that can assist you in purchasing your primary residence. You can choose from a number of different programs in Luxembourg, whether you're looking to acquire an existing home, start a construction project, or do either. When do they really pay off, though?

## Who can you consult for advice before making a property investment?

A great deal of planning will go into your real estate venture. What formal procedures must you follow? How much money will we have to spend? Assemble a team of experts who can give you accurate details about your purchase so you can better manage the project.

## After a visit, how do you go about making an offer?

The love bug has bitten you! Your first offer to buy should now be formulated and negotiations should begin. What is your secret? This is an important move that needs to be guided by solid advice.

How to buy property: a buyer’s manual

What aid for buying or building in Luxembourg.jpg

Do you want to own the place where you sleep at night one day? In order to encourage home ownership and housing construction in Luxembourg, the government offers a number of grants and subsidies for these purposes. What programs are currently in effect? When would you use them to your advantage? This article provides a concise summary of all the data you will need to make an informed decision on how to pay for your new possession.

## Government aid for a real estate project

Did you know that the state, specifically the Department of Housing, funds the majority of homebuyer assistance? Some people can benefit from this aid. The application is generally addressed directly to the Housing Aid Department.

### The purchase premium: The Luxembourg down payment assistance program

The financing of important expenses is assured by the purchase (or construction) premium. This program is intended for Luxembourgers interested in buying or building their own home. Its cost can vary from 250 to 9,700 euros. To be eligible, you must meet a number of prerequisites. Area requirements range from 65 to 140 square meters for single-family homes and 45 to 120 square meters for multi-family units. Keep in mind, however, that this tool comes with conditions related to financial stability and family size.

Submit an application for an acquisition bonus:

- If you need financial assistance to pay your rent, the first step is to fill out a housing assistance application.
- Then submit it to the housing assistance department within 12 months of signing the deed.

### Financed by a tax on interest

It is possible that you can benefit from an interest subsidy from the State if you have taken out a mortgage loan to buy or build your main home. Specifically, you can get a 0.50% reduction on your loan rate for each child living in your household, up to a maximum reduction of 3%.

### The program can be used during the construction process, when purchasing a property or during a renovation

This interest subsidy is only available to those who:

- Have at least one child who is fully dependent on them
- Do not have other loan holders
- Are not co-owners, usufructuaries, or owners of other real estate (in Luxembourg or abroad).

Persons applying for housing assistance must do so using the appropriate application form. Then, before the renovation or construction work begins, or the sale of a property is finalized, it must be forwarded to the housing assistance service.

### Interest Subsidy

The interest subsidy is also used for the interest subsidy. The program offers an interest rebate of between 0.575 and 2.45% on loans up to €175,000. The financial situation and stability of the beneficiary are taken into account in determining this rate.

It is important to take into account the characteristics of the surface for this type of aid:

- Apartments must have an area between 45 and 120 square meters, while houses must have an area between 65 and 140 square meters.
- This surface requirement does not apply to the purchase of a house built before September 10, 1944.
- Applications for both the construction bonus and the purchase bonus can be submitted at the same time.

Only people who have saved money with the intention of building or buying a residence in Luxembourg can participate in this program. It is possible to award it at the same time as a construction premium or an acquisition premium. The bonus is conditional on the beneficiary maintaining a certain savings account with an initial deposit of €100 for a minimum of three years.

What aid for buying or building in Luxembourg?

Home Staging, an effective way to sell better in Luxembourg.jpg

Are you having trouble selling your house in Luxembourg? What if the visits don't work out or, worse, no one wants to see it? It could use a little facelift to bring out all its charm. Home staging or home coaching can help you save money while improving the appearance of your home.

## Improve the value of your home with home staging

It is difficult for many visitors to imagine themselves living in the home they are visiting. The lack of transparency slows down their approach and can even deter them from making an offer to buy.

If you want to increase the chances of selling your property, take our home staging tips to heart. In recent years, many people have taken up home staging, and some have even made a career out of it.

The main objective of home staging is to create an atmosphere of calm and ease. It is advisable to get rid of as many individual touches as possible, such as intrusive decorations, portraits or unusually styled furniture. Most of the time, it is not even necessary to replace them, as it is partly to get rid of the clutter and make things more impressive. However, it can be helpful to incorporate a plant or some small, classic decorations to make the space feel more inviting.

In any case, home staging does not require a large financial investment. A lighter coat of paint on the walls or new flooring are two suggestions that come up from time to time. Most of the time, however, we accept incremental improvements that make a big difference.

## With home coaching, refine your approach to selling

Coming from the field of house staging, home coaching offers sellers a broader support system to speed up the sale. This is a great option for people who would like to invest in real estate but simply don't have the time or energy to do it on their own.

If you need this type of assistance, your "Home Coach", who specializes in real estate sales, will help you with everything from beautifying your home to choosing the best advertising networks for your listing.

You can have a smooth selling experience with this person while moving your project forward in an efficient and profitable manner.

## Attractive images that attract more visitors

More than half of a real estate searcher's time spent online is spent viewing visuals. That's why they are so essential to any listing! Taking pictures of your Luxembourg home or apartment at the right time of day, especially when the weather is nice for maximum light, will help increase its market value.

Use a high quality camera with the right resolution and sharp rendering. Finally, consult a home staging expert for advice on how to enhance your space... Changing a single piece of furniture can have a profound effect on the mood of a room.

Home Staging, an effective way to sell better in Luxembourg

3 tips to move into a studio in the center of Luxembourg.jpg

Are you starting a new phase in your life by attending a different school, moving out of state to find a job, or moving to be with your spouse? To avoid falling into the red, you need to practice careful financial management. Learn how to save money on everything from renting a studio apartment in the heart of Luxembourg City with these handy tips!

## Preserve your purchasing power by planning for all your living expenses

If the rent in Luxembourg is too high for your monthly budget, you can always go hunting for a more reasonably priced place to live. Look for "empty" housing, i.e. rented without furniture, if you can afford it. These units are a more economical option than fully furnished apartments.

If you are looking for a studio apartment in the center of Luxembourg and are only interested in the cheapest rents, you may end up in a decades-old building. Reduce the amount of money you spend on heating by developing a few helpful routines, such as opening windows and doors at regular intervals to let in fresh air and closing them to conserve heat.

## Be careful when choosing your home insurance

The landlord of your downtown Luxembourg studio will probably ask you for proof of insurance before you sign the lease. You should budget for this every month, again.

If you are renting in Luxembourg without the help of an agency, you should still take precautions to protect yourself from the most serious threats (water damage and fire, for example). Don't hesitate to shop around to find the best deal for this expense by comparing offers from different providers.

Think twice before buying if you need to protect expensive electronics and delicate furniture. If you want more protection in case something goes wrong, it may be worth spending a little more.

## Now is the time to start saving for the future

You may be considering renting a small studio apartment in Luxembourg City today. In a few years, however, you'll almost certainly begin to consider your financial assets, such as the possibility of replacing your monthly rent payments with a mortgage payment that will actually put your money to good use.

Start cutting back immediately. If you have quick reflexes, make smart purchases, and minimize unnecessary waste, you can dramatically reduce your water and electric bills (buy used, resell excess, reuse unused items, etc.).

By doing this, you can save money each month that you don't spend. You can either put this money in a down payment on a house or use it as a down payment on a rental property in Luxembourg.

3 tips to move into a studio in the center of Luxembourg!

Hesperange.jpg

Between town and country, the Luxembourg municipality of Hesperange (Hesper for the locals) includes a total of five towns: Hesperange, Alzingen, Itzig, Howald and Fentange. Its immediate proximity to Luxembourg City makes it one of the most important in Luxembourg. Its many assets have attracted its 15,584 inhabitants, as of January 1, 2020. 

## Hesperange, a very attractive Luxembourg locality

With its surface of 27,22 km², Hesperange is ideally located between an urban and an agricultural territory. This particularity confers to its inhabitants various landscapes mixing urban dynamism, residential districts or commercial activity zones; the whole in the calm of the countryside. 

Its full demographic growth linked to the charm of its atmosphere as well as to its direct proximity to the city of Luxembourg allows the commune of Herserange a strong economic development with in particular:

- a future restructuring of the ZAC of Howald (one of the capital economic points of the commune) ; 
- the creation of a new activity zone "Op de Leemen" in Fentange; 
- the expansion of the industrial zone in Alzingen. 
 
This guarantees a very satisfactory global commercial offer to its residents. 

## The school infrastructures present in Hesperange

With more and more families settled in the commune, the number of school infrastructures has increased in order to be able to welcome children of all ages. 

The five localities therefore offer quality education from cycles 1 to 4, as well as a canteen and daycare service within the schools. 

The media library of Hesperange is also an attractive place to cultivate : 

- the children's thirst for learning to read ; 
- tools adapted to the studies of the older ones.

## An offer of leisure activities accessible to all

### Sports activities

Many sports and leisure activities are proposed to the inhabitants of Hesperange. 

Among them, you will find various infrastructures such as :

- soccer and basketball fields ; 
- beach-volley ; 
- sports hall ; 
- tennis court ;
- cyclocross ;
- Skateboard Track.  

There are multiple playgrounds for the youngest children, allowing them to have fun during their free time while meeting other children from the city.

What do you know about the beautiful city Hesperange in Luxembourg?

4 tips for taking photos that reflect your home.jpg

If you want to sell or rent your property in Luxembourg, photographs are a key element in attracting potential buyers or tenants. Indeed, first impressions are often the most lasting and photos can make or break a buyer's or tenant's decision. Here are some tips to help you take quality photos of your home.

## 1. Use natural light
Natural light is often best for interior photos. If possible, shoot in the early afternoon when the sun is streaming in through the windows. If it's cloudy, photos may not be bright enough, so use a torch or flash to illuminate dark areas.

## 2. Clean rooms before shooting
Make sure the rooms are clean and tidy before you shoot. Put away unnecessary items and wipe down surfaces. If necessary, wash the windows to make sure the rooms are well lit.

## 3. Use good resolution
Poor quality photographs can give a poor impression and reduce the chances of attracting potential buyers or tenants. Make sure you use a high-quality camera or high-end smartphone to take high-resolution photos.

## 4. Highlight your property's strengths
Highlight the best parts of your home by taking photos of its most interesting features, such as its views, balcony, modern kitchen or spacious bathroom. Make sure the photos reflect the best aspects of your home.

## 5. Avoid blurry or distorted photos
Blurry or distorted photos can make your home look unattractive. Use a tripod to avoid blurry photos, and make sure photos are taken at a 90-degree angle to avoid distorted perspectives.

By following these tips, you can take quality photos of your Luxembourg home and show them to potential buyers or tenants. Well-taken photos can make a big difference to your property listing and help sell it.

5 tips for taking photos that reflect your home

Walferdange.jpg

Walferdange is a great place for those interested in history and nature, and it's only 11 minutes away from Luxembourg City via the N7. Located in the center of the Alzette valley, it is home to more than 8,400 people and is ideal for families in search of tranquility and lush vegetation. Have any questions left? Learn the many charms that make Walferdange a desirable location.

## Experiencing daily life in Walferdange

### A place where families can thrive

Walferdange, with its proximity to both the city of Luxembourg and the countryside, is a great place for families to settle. There are three public schools and a crèche in Walferdange. In an effort to facilitate working parents, a school bus service has been established. There are also plenty of parks and open spaces where kids can play and exercise.

Children also have the option of attending "Maisons Relais" (after-school care centers) where they can relax while completing their homework or participating in extracurricular activities (sports, arts, etc.).

Walferdange also provides a "Meals on wheels" service, which delivers meals to the homes of senior citizens. The city government also provides a gymnastics program tailored to the needs of senior citizens.

### Advantageous entry into Luxembourg's capital

If you're a commuter who dreads sitting in traffic on the N7 during rush hour, you can get to the heart of Luxembourg from the Walferdange train station in just 10 minutes.

The city also has shuttle buses that run frequently to make getting around easier. Scheduled times for these are 7 a.m. to 7 p.m. Monday through Friday and 9 a.m. to 7 p.m. Saturday.

The Night Card is a discounted weekend bus pass for young adults (16–26) that allows them to ride the bus late at night.

### A city packed with fun things to do

In the commune, you can participate in a wide variety of sports and recreational activities. Numerous soccer and tennis courts are available.

You can join a club team in basketball, volleyball, or rugby.

A spa, sauna, and swimming area can be found on the Alzette River, north of Walferdange, for those who need or want to unwind for a while.

### You can go hiking and biking in Walferdange

The township of Walferdange includes the neighboring communities of Bereldange and Helmsange in the southern Guttland region.

The three settlements span both banks of the Alzette, and their forested surroundings provide ample opportunities for exploring the river and its environs on foot. Hikers and cyclists of all skill levels will enjoy exploring this tranquil area.

Visitors can learn the ins and outs of gypsum mining by embarking on a hike out of Bereldange. The ruins of the ancient Roman aqueduct Raschptzer can be found at the end of another path in the woods.

Helmsange, on the other side of the Alzette, is home to a nature reserve known as Sonnebierg. The site includes a list of many uncommon plants, which will be of interest to botanists. Orchid enthusiasts will undoubtedly get to see some beautiful specimens.

In the 20th century, gypsum was mined in the area not far from there, between Bereldange and the Kléngelbaach valley. Their renowned whiteness is a testament to the abundant natural resources in the area. Although the gypsum mines are now primarily used for testing measuring instruments, a 5.2-kilometer path beginning in Bereldange provides access to the historical mining sites.

## Walferdange Historical Attractions

The town has been around since Roman times and was once home to Prince Henry of the Netherlands.

It's rich in history, so storytellers will find plenty of material there.

The Walferdange Castle, constructed by William I in 1817, is just one of many sites waiting to be explored. Before the Belgian revolution of 1830, it served as a storage facility for royal stallions. The castle was left forsaken for a decade before it was reclaimed as a royal residence in 1841. There, Prince Henri wed Princess Amélie and later Princess Marie of Prussia. This was after he relocated there in 1850.

The fact that the castle housed Luxembourgish children and their families during the First World War is an interesting aside as well. The Ministry of Education, Children and Youth has been using it for some of its operations since 2015.
But the commune of Walferdange has other historical places of interest, such as:

- The Roman villa : located in Helmsange, not far from Walferdange, it consists of 50 rooms. Numerous potteries have been discovered there by archaeologists. The ruins are still visible today.
- The church of the Trinity: murals by Gerdhard Lamers, a German artist from the beginning of the 20th century, can be admired here.

## Walferdange, a place of cultural wealth

But nature and history are not the only riches of Walferdange! Culture also has its place here. 

Lovers of literature will find their happiness here thanks to the Walfer Bicherdeeg. This event, which takes place every year in November, attracts many Luxembourg collectors and book dealers.

Those who prefer to stroll through the art galleries will be delighted by the Walfer Kulturschapp, an exhibition space, or by the CAW. This space, open to adults as well as to youngsters, honors local artists while organizing discovery workshops for children.
Ideal for families and nature lovers, Walferdange is greatly appreciated for its direct proximity to Luxembourg City. Real estate prices are more attractive than in the capital of Luxembourg, where it is easy to get to daily by car or train. 

If you are still looking for a place to live, don't hesitate: Walferdange regularly welcomes new residents.

Walferdange, family nature near the city of Luxembourg

Should you furnish your rental property for a better return in Luxembourg.jpg

Once you have invested in a rental property in Luxembourg, there are a few things to consider.

Do you need to upgrade the property before you can rent it at a higher price? Do you want to rent it "empty" or with furniture?

This is an excellent question, and here are some solutions!

## Higher rents and potential tax benefits are the advantages of renting a furnished property

You can save money on taxes by renting your property in Luxembourg as a "furnished rental". The furniture and equipment you buy for the interior depreciate over time. This means that you can deduct them from your rental income, but only if you respect the rules.

Buying new furniture can reduce your taxable income, leaving you more money to spend on rent increases. Of course, if two properties are identical in terms of size and other key features, the rent for the one you don't have to do anything but unpack will be higher. If you are looking to invest in a rental property in Luxembourg in order to minimize your tax liabilities and collect the highest possible rent, you should be aware that you cannot charge more than twice the rate that would apply to an "empty" apartment or house.

## Risks of vacancy and gradual deterioration of rental properties

Renting apartments in Luxembourg for individuals can be complicated when furniture is included. At the end of the lease, it is important to make an inventory of all the equipment, not just the walls, taps and electrical appliances. A broken drawer, a cabinet door that won't stay closed or a refrigerator that doesn't work properly are just a few examples of furniture defects that need to be considered.

The risk of damage increases the likelihood of legal action. We advise you to hire a real estate agency in Luxembourg to take care of the rental management of your property so that you don't have to worry about the daily operations of your rental property investment.

If you take into account that tenants in furnished rentals tend to be less reliable, you will appreciate their service even more. Although these properties usually find a tenant quickly, the contracts may not be long term, which increases the risk of vacancy... In order to sign a new contract, it is usually necessary to re-run the ad.

There is no universally correct answer to the question "should I furnish my property for rent in Luxembourg or not? If you want to be sure to make the right choice, do not hesitate to consult professionals.

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