How can you reduce your housing budget?

Claiming rent assistance when moving to Luxembourg

"When we arrived in Luxembourg with our two children, I was surprised by the financial and social assistance I was eligible for. I came from Italy and was completely won over by the assistance in general and the rent subsidy in particular. With my husband's job, which we considered to be relatively well paid, I learned that I was eligible for this allowance.The only downside was that I found out a little too late..."

This testimony from an Italian expatriate in Luxembourg clearly shows the importance of finding out information in advance. Here is more information about the rent subsidy, which can help you reduce your housing costs in Luxembourg.

How does the housing subsidy work in Luxembourg?

The cost of housing in Luxembourg is often an obstacle for new residents. In fact, over the past decade, rents in Luxembourg have skyrocketed. Between rent and utilities, it can sometimes be difficult to balance your budget.

The rent subsidy is a form of assistance provided by the Luxembourg government to support tenants in financial difficulty. If you are a resident of Luxembourg and your income is below a certain threshold, you can receive financial assistance that will reduce the amount of your monthly rent.

What are the criteria for claiming rent assistance?

To find out if you are eligible for this monthly housing assistance, you must meet certain criteria:

• You must be a legal resident of Luxembourg.
• Have an income below a certain threshold. A family of four with a net monthly income of less than €4,000 may be eligible for the rent subsidy.
• Your rent must be below certain limits. If you pay more than €2,000 in rent, you may not be eligible.

Is it easy to obtain the rent subsidy?

Unlike in other countries, the procedure for applying for a rent subsidy in Luxembourg is relatively simple. All you have to dois submit your rent subsidy application online via Guichet.lu, the official portal for administrative procedures.

Let's take the example of a couple with a net monthly income of €3,800. Before the rent subsidy, the €1,600 monthly rent for a two-bedroom apartment in Dudelange represents 42% of their total budget. Thanks to the €350 monthly rent subsidy, the couple saves €4,200 per year.

How do you apply for a rent subsidy?

If you think you might be eligible for this housing assistance to help with your rent, here's what you need to do:

1. Gather your documents: make sure you have your pay slips, your rental agreement, and a valid ID.

2. Log on to Guichet.lu: this official website allows you to easily submit your rent subsidy application online.

3. Fill out the form: follow the instructions and submit your application.

You will usually receive a response within a few weeks.

Other tips for reducing your housing budget in Luxembourg

Assessment of the budget required to live and find accommodation in Luxembourg

Since rents have increased, living in Luxembourg City and its suburbs has become very difficult. Renting a two-bedroom apartment for less than €2,000 per month is becoming increasingly impossible.

A 2018 Statec study estimated that €4,079 was the minimum budget for a family of four to live decently in Luxembourg. Unfortunately, to our knowledge, these figures have not been updated.
However, the website visitword.today reports that in 2024, a minimum budget of €6,000 to €8,000 per month will be necessary for a family of four and €3,210 for a single person to live in Luxembourg. See the cost of living in Luxembourg.

The cost of housing in Luxembourg is therefore a major challenge for newcomers. In addition to the rent subsidy already mentioned, there are several strategies that can help reduce your housing budget.

Focus on outlying areas

Rents in the center of Luxembourg City are high. Don't hesitate to consider outlying municipalities for more affordable options. For example, towns such as Esch-sur-Alzette or Differdange generally offer lower rents while still being well connected to the center.

Consider sharing a home

Sharing accommodation with other people allows you to split the cost of rent and utilities. This option is becoming increasingly popular, particularly among young professionals and expats.

Look for subsidized housing

The Luxembourg government offers low-rent housing for low-income households. These properties are often managed by public agencies or non-profit organizations. Eligibility criteria and application procedures are available on the official website Guichet.lu.

Take advantage of student housing assistance

If you are a student or have a family member who is, university residences offer reduced rents. However, please note that places are limited. In addition, specific assistance is available for students, whether they are nationals or international.

Find all the financial assistance available to reduce your housing budget here

By combining these approaches and regularly checking for available assistance, it is possible to find solutions to lighten the burden of rent on your budget in Luxembourg.