Inheritance in Luxembourg: Rights, Procedures and Will
After a death, inheritance raises many questions: who inherits, in what proportions, at what cost and within what deadlines? This page outlines the main principles of Luxembourg inheritance law. It does not replace personalised advice from a notary, but gives the family clear reference points for these steps.
Inheritance Law in Luxembourg
Inheritance Tax Rates in the Direct Line (Children, Parents)
The share received “ab intestat” (that is, under the law, in the absence of a will or gift) by heirs in the direct line, descending or ascending (children, grandchildren, parents, grandparents), is entirely exempt from inheritance tax in Luxembourg.
Inheritance Tax Between Spouses and Partners
Between spouses, or between partners linked by a declared partnership for at least 3 years before the succession opens, the share received is also exempt where there are children in common with the deceased. In the absence of children in common, a rate of 5% applies, with an allowance of €38,000 on the net share received by the spouse or partner. For other family ties (siblings, uncles/aunts and nephews/nieces, third parties), the base rates are higher and may be increased where the taxable net share exceeds €10,000 (source: myLIFE).
Inheritance for Non-Residents (Cross-Border Workers)
Where the deceased had their last domicile in Luxembourg, inheritance tax applies to their entire movable estate, wherever located, as well as to any real estate situated in Luxembourg. Where the deceased was not a Luxembourg resident, only real estate located in the Grand Duchy is subject to Luxembourg tax: the rest of the estate is, in principle, governed by the law of the deceased's country of residence (source: Euodia). Such cross-border situations, common in Luxembourg, often warrant the advice of a notary, particularly where a bilateral tax treaty applies.
The Inheritance Declaration
Deadlines and Formalities with the Registration Authority
The inheritance declaration must be filed with the Registration Duties, Estates and VAT Authority (AED) within 6 months of the death, where the death occurred in Luxembourg. This deadline is extended to 8 months where the death occurred in another European country (source: Guichet.lu). It is mandatory even where no inheritance tax is ultimately due.
Required Documents and Registration of the Estate
The declaration must in particular include a full copy of the death certificate, as well as, depending on the case, a recent land registry extract for real estate or a notarial deed where a marriage contract exists.
Depending on whether the estate is exempt or liable to duties, the relevant contact differs: the AED's inheritance office for exempt estates, or a legal professional (notary, lawyer) for estates liable to duties (source: Portail de la fiscalité indirecte).
The Will in Luxembourg
Holographic Will vs Notarial Will
Luxembourg law recognises 3 forms of will, all of equal legal value:
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the holographic will: written, dated and signed entirely by hand by the testator;
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the notarial (or authentic) will: received by 2 notaries, or by a notary assisted by 2 witnesses;
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the mystic (or sealed) will: written by the testator, then handed over sealed to a notary, in the presence of 2 witnesses.
The holographic will is the simplest and least costly form to draw up, but it carries a risk of being lost or of relatives being unaware of its existence. The notarial will benefits from the notary's legal advice, which limits the risk of a defect of form or substance (source: Guichet.lu).
How to Draw Up a Will in Luxembourg
Anyone aged 16 or over, of sound mind, may draw up a will (minors aged 16 to 18 may, however, only dispose of half of their assets). A holographic will may be registered with the central register of last wills, held by the Registration Duties, Estates and VAT Authority, for a fee of €10 for an electronic application or €20 for a paper form. Notarial and mystic wills are automatically registered by the notary who receives them.
The Reserved Share (Statutory Share)
The deceased's descendants are forced heirs: the law guarantees them a minimum share of the estate, known as the reserved share, of which they cannot be deprived. The share the testator may freely dispose of, known as the disposable portion, varies according to the number of children:
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With 1 child, the disposable portion is half of the estate
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With 2 children, it is one third of the estate
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With 3 children or more, it is one quarter of the estate
Forced heirs are not required to claim their reserved share: if the testamentary provisions do not respect it and no one claims it, they remain valid.
Renouncing an Inheritance in Luxembourg
Renouncing an inheritance is done by means of a declaration filed with the registry of the district court (Luxembourg or Diekirch) in whose jurisdiction the estate was opened. Once the renunciation has been made, the heir no longer has any rights or obligations with regard to the estate: their share then passes to the other heirs.
In Luxembourg, this type of contract is flexible: you can change it at any time if your preferences evolve. This allows you to retain full control over the arrangements while benefiting from a clear and secure administrative framework.
The heir has a period of 3 months (for drawing up the inventory) plus a further 40 days (period for reflection), from the day of death, to choose whether to accept or renounce the inheritance.
FAQ: Frequently Asked Questions
They depend mainly on the family relationship with the deceased: exemption in the direct line and between spouses with children in common, 5% between spouses without children in common (with a €38,000 allowance), and higher, progressive rates for other family ties.
What are the inheritance costs in Luxembourg?
How much time do you have to file the declaration?
6 months from the death if it occurred in Luxembourg, 8 months if the death occurred in another European country (source: Guichet.lu).
How is an estate divided without a will?
In the absence of a will, the estate is divided according to the legal order of succession under Luxembourg law (source: Guichet.lu), which favours the deceased's descendants, followed, depending on the case, by the surviving spouse and other family members.
Calmes can guide you through these first steps and, if needed, put you in touch with a notary: we remain by your side for human and practical support, funeral arrangements, and help through this difficult time.