Selling inherited land in Luxembourg: steps, timing, tax

1. Where do you start after the death?

With the succession declaration, not with the sale. It must be filed within 6 months if the death occurred in Luxembourg, 8 months if it occurred elsewhere in Europe (PFI, AED). It is compulsory even when no duty is due. The land is declared at its market value on the day of death, which the administration can check against recent sales.

On duties, the direct line pays 0 % on its legal share, as do the spouse and a partner declared for at least 3 years. A brother or sister pays 6 % on the legal share, a nephew 9 %, an unrelated person 15 %, with a progressive surcharge that can lift the top rate to 48 % above €1.75 million per heir (Guichet.lu). The notary then draws up the acte de notoriété, which identifies the heirs. Without it, no deed of sale can be signed.

2. What is your land worth in 2026?

Much less than in 2022, and more by commune than by size. On sales from 2023 to 2025, the national median is €90,582 per are for a median plot of 5.19 ares, or about €470,000 (Observatoire de l'Habitat, report no. 26). By zone: €259,159 per are in Luxembourg City, €139,652 in the first ring, €105,987 in the second, €97,231 in the third, €67,219 in the Centre-North and €45,981 in the North.

The market has stabilised: -0.1 % in 2025, after -10.0 % in 2024. 612 building plots were sold in 2025, against 565 in 2024. Buyers are coming back, but they are few and very careful.

The price of land does not depend on the are alone: zoning in the PAG, whether a PAP is still needed, servicing, slope, access. Two neighbouring plots can have very different prices.

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Before any discussion, ask the commune for the PAG extract and check whether a "new district" PAP is required. A plot that is buildable right away and a plot waiting for a PAP have neither the same buyer, nor the same price, nor the same timeline.

3. How do you sell when there are several heirs?

Unanimously, or after a partition. In joint ownership (indivision), each heir holds a share of the whole plot, and the sale requires everyone's agreement. A single heir who refuses, or who does not answer from abroad, blocks the file.

There are three ways out. Sell together and split the price according to the shares. Carry out a partition, in which one heir keeps the land and pays a balancing payment (soulte) to the others. Or, as a last resort, ask a court for partition, which takes years and is expensive. The partition duty is well below the 7 % of a sale; have your notary calculate it. Also watch the tax treatment of the share bought through a soulte: as a rule, it is treated as a new acquisition, with its own date. Check with your notary or tax adviser before signing.

4. What capital gains tax applies to inherited land?

The heir takes over the deceased's purchase price and date. The value declared in the succession is not the basis for income tax (ACD). If the deceased bought the land 5 years ago or less, the gain is speculative and taxed at the full progressive rate, with no revaluation and no allowance. Beyond 5 years, it is taxed at half the global rate, a maximum of about 21 %, plus the fonds pour l'emploi. The quarter rate ended on 30 June 2025 and does not apply in 2026.

Each heir has an allowance of €50,000 every 10 years, €100,000 for a jointly taxed couple. The extra €75,000 allowance, however, is reserved for a built property that was the parents' main residence. Bare land does not qualify.

Simplified example: your parents bought 6 ares in 1990 for €60,000. With the 1990 revaluation coefficient of 2.05 from form 700, the revalued price is €123,000. Two children sell for €580,000, close to the third-ring median. Gain: €457,000, or €228,500 each. After the €50,000 allowance, €178,500 per child remains taxable, at no more than 21 %, so a maximum of about €37,500 each, plus the fonds pour l'emploi. The real amount depends on your other income.

5. Should you sell to a private buyer or to a developer?

It depends on the size of the plot and its zoning. A buildable plot of 4 to 6 ares mainly attracts families who want to build. A large plot subject to a PAP mainly attracts developers, who reason backwards: sale price of the future homes, minus construction costs, fees, margin and the affordable housing share. What is left is your price.

Since the Pacte logement 2.0, a "new district" PAP with 10 to 25 homes must set aside at least 10 % of the gross built area for affordable housing, and at least 15 % above 25 homes. Bill 8481 would harmonise this at 15 % from 10 homes (Chamber of Deputies). The developer deducts this share from its offer.

In practice, a developer signs a compromis with conditions precedent: PAP approval, a building permit free of appeal, financing, sometimes a pre-sales threshold. The time to the deed is then often counted in years, commonly 18 to 36 months. Negotiate a holding fee (indemnité d'immobilisation), a long-stop date and a price indexation clause. And do not forget the commune's pre-emption right, provided for by the law of 22 October 2008 in certain zones.

6. What timeline should you expect, and should you wait?

Allow 6 to 8 months for the succession, then the time to find the buyer and move from compromis to deed with a private buyer, much longer with a developer. Waiting has a cost. Bill 8082 provides for a land mobilisation tax on buildable plots left bare, from the fifth year, with a counter that does not reset on a sale. It has not been voted yet and the first amounts would only be due around 2035 according to the announced timetable (Paperjam). But a well-informed buyer already factors it in.

How do you sell your inherited land at the best price?

By preparing the file before looking for a buyer. Gather the acte de notoriété, the cadastral extract, the deceased's purchase deed with its price and date, the PAG extract and, if possible, a boundary plan. Get the heirs to agree on a floor price and on a single point of contact. Then have each heir's capital gain calculated before signing.

At Secretimmo, an off-market agency and platform, we value land from actual sales and building potential, and we present your plot discreetly to qualified families and developers, without exposing it on the portals. Start with the free estimator at secretimmo.lu/valuation. The valuation is free if a mandate is signed within the week, otherwise it is invoiced at €600 excluding VAT.

This article draws on analysis report no. 26 of the Observatoire de l'Habitat (building land prices 2023 to 2025), the Guichet.lu, AED and ACD pages on successions and capital gains, and the parliamentary documents cited. The figures and timelines are indicative and do not replace the advice of your notary or tax adviser.

Frequently asked questions

Do you pay inheritance tax on land inherited from your parents?

Not on the legal share: the direct line is exempt at 0 %. Only a share received beyond the legal share, through a will, is taxed at 2.5 % or 5 %. The succession declaration remains compulsory within 6 months if the death occurred in Luxembourg.

What is the basis for the capital gain on inherited land?

The deceased's purchase price and date, revalued by the official coefficient for the year of purchase. The value declared in the succession does not count. If the deceased bought more than 5 years ago, the gain is taxed at half the global rate, a maximum of about 21 %.

Does the €75,000 allowance apply to inherited land?

No. It covers a built property inherited in the direct line that was the parents' last main residence. For bare land, only the allowance of €50,000 per person every 10 years applies.

Can a single heir block the sale of the land?

Yes. In joint ownership, the sale requires everyone's agreement. The alternatives are a partition with a balancing payment, where one heir keeps the land and compensates the others, or a court-ordered partition, which is long and expensive.

How long does it take to sell inherited land to a developer?

Often more than a year after the succession. The compromis is signed under conditions precedent, an approved PAP and a building permit free of appeal, and the time to the deed commonly reaches 18 to 36 months.