Luxembourg (LU)
Luxembourg is a tiny but remarkably prosperous constitutional monarchy at the heart of Europe — a founding member of both the EU and NATO — celebrated as the world's most productive economy per capita, the EU's premier financial centre, and home to the highest minimum wage on the continent.
Estate & Inheritance in Luxembourg
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Luxembourg's estate and inheritance law is based on the French civil law tradition. The EU Succession Regulation (EU 650/2012) applies, meaning for EU residents the law of the country of habitual residence at death generally governs the estate — important for Luxembourg expats. Luxembourg has inheritance taxes (droits de succession) that vary significantly by the relationship between the deceased and the heir. Spouses and direct descendants benefit from full exemption on inheritance. The very international population of Luxembourg makes estate planning complex — especially for those with assets in multiple countries or where family members are spread across different EU countries.
Intestacy — What Happens Without a Will
If you die without a will (intestat/sans testament) in Luxembourg, the Civil Code determines succession. The order: (1) Descendants (children, grandchildren) — excluding the spouse from the estate except for usufruct rights; (2) Spouse: entitled to 50% usufruct of the whole estate in most cases, or 25% in full ownership depending on the regime; (3) If no descendants: parents and siblings; (4) Other relatives up to 6th degree; (5) Luxembourg state if no qualifying heir. A surviving registered partner (partenariat) has similar but not identical rights to a spouse under Luxembourg law — a will is strongly recommended for PACS partners.
Types of Valid Will
Holographic will
Testament olographeA will written entirely by hand by the testator (not typed), dated, and signed. No witnesses or notary required. Must be 100% handwritten — not partially typed. Can be written in any language the testator understands.
Valid in Luxembourg if correctly handwritten, dated, and signed. Can be contested if authenticity is disputed. Registration ensures it can be found after death.
The simplest form of will. However, more easily contested than a notarial will. If not registered in the will register, there is no guarantee it will be found. Should be stored securely (bank safety deposit box, with your notary, or registered nationally). Review and update regularly.
Notarial will (authentic will)
Testament authentique / Testament par acte publicDictated to a notaire in front of two witnesses (or another notaire). The notaire writes the will, reads it back to the testator, and all sign. Strongest form of will — very difficult to contest.
Very strong — automatically registered in the Registre National des Testaments. Notaire retains the original. Difficult to contest for incapacity or undue influence.
Recommended for complex estates, large assets, or where there is any risk of family disputes. The notaire can advise on optimising the distribution to minimise inheritance tax and ensure all Luxembourg legal formalities are met.
Mystic will (secret will)
Testament mystiqueA sealed will deposited with a notaire — the notaire does not know the contents but holds the envelope. Less used than the other two forms.
Valid but less common. Offers privacy while ensuring a notaire holds the document.
Rarely used in modern Luxembourg practice. The holographic or notarial will are generally preferred.
Forced Heirship
Luxembourg has réserve héréditaire (forced heirship) — a portion of the estate that MUST go to direct descendants (children) regardless of any will. The réserve is: 1 child = half the estate. 2 children = two-thirds. 3+ children = three-quarters. The remaining portion (quotité disponible) can be left freely to anyone. A testator cannot use a will to disinherit all children of their share below the réserve. Note: the EU Succession Regulation (EU 650/2012) can cause conflicts between jurisdictions with different forced heirship rules — important for multinational families.
EU Succession Regulation (Brussels IV)
The EU Succession Regulation (EU 650/2012) applies in Luxembourg. The general rule: the law of the country where you habitually reside at death governs your estate. However, EU citizens can make a choice of law (professio juris) in their will to have their home country law apply instead of Luxembourg law. This is particularly important for: expats from countries with forced heirship rules different from Luxembourg, expats who may relocate before death, and those with assets in multiple EU countries. A Luxembourg notaire or estate lawyer can advise on making a professio juris election.
Inheritance Tax
Luxembourg levies droits de succession (inheritance tax) and droits de mutation par décès (estate duty) on inheritances. Critically: SPOUSES and DIRECT DESCENDANTS (children, grandchildren) are fully EXEMPT from inheritance tax on direct succession — this is a major advantage. The remaining classes pay graduated rates depending on their relationship to the deceased.
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| Spouse / registered partner | Full exemption | 0% |
| Direct descendants (children, grandchildren) | Full exemption on direct succession | 0% |
| Ascendants (parents, grandparents) | Fully exempt on legal intestate share (0%); amounts received above legal share via will: €38,000 allowance, then 2.5–5% | 0% on legal share; 2.5–5% on excess above legal share |
| Siblings | Small exemption | 6–15% |
| Uncles/aunts and nephews/nieces | Small exemption | 9–18% |
| Other relatives (cousins etc.) | Minimal | 10–30% |
| Non-relatives / unrelated persons | None | 15–48% |
The full exemption for spouses, children, and grandchildren makes Luxembourg relatively estate-tax-friendly for nuclear families. However, unmarried partners (without PACS) and non-relatives face very high rates (up to 48%). Same-sex registered partners (partenariat) have similar tax treatment to spouses in Luxembourg. Donating assets during your lifetime (donation) can significantly reduce inheritance taxes — donations to children from parents are taxed at very low rates. IMPORTANT: Luxembourg inheritance tax only applies to assets situated in Luxembourg (immovables) and to Luxembourg-domiciled decedents. For expats who are not domiciled in Luxembourg, international estate planning is complex.
Cross-Border & Multi-Country Estates
Luxembourg's highly international population means cross-border estates are common. Key considerations: (1) EU Succession Regulation applies for EU residents — law of last habitual residence. (2) Double taxation treaties on inheritance: Luxembourg has limited inheritance tax treaties — check if your home country taxes the same inheritance. (3) For assets in multiple EU countries: the EU Succession Certificate (certificat successoral européen) simplifies asset transfer. (4) For assets in non-EU countries: bilateral treaties or conflict of laws analysis needed. (5) US citizens: the US estate tax applies worldwide — specialist US/Luxembourg estate planning is a specific niche in Luxembourg's legal market given the large US expat and EU institution staff population.
Certificate of Inheritance
The acte de notoriété successorale (certificate of succession/inheritance) is a notarial deed establishing who the legal heirs are. Required to unblock bank accounts, transfer vehicle ownership, and deal with other assets. In Luxembourg, the notaire typically issues this once the estate is being administered. For EU cross-border estates, the European Succession Certificate (certificat successoral européen) is available and valid across all EU member states.
Will Registration
Luxembourg has a Registre National des Testaments (national will register) maintained by the Chambre des Notaires. Registration ensures your will can be found after death. Cost: small fee (approximately €20–50). Your notaire will automatically register a notarial will. For holographic wills, registration is voluntary but strongly recommended. Belgian, French, and German testators who have wills registered in their home countries should also register in Luxembourg if Luxembourg assets are significant.
Living Will & Healthcare Power of Attorney
Luxembourg has a legal framework for directives anticipées (advance directives / living will). You can specify your wishes regarding end-of-life medical treatment and appoint a trusted person (mandataire) to make decisions on your behalf if you become incapacitated. Since 2009, euthanasia (euthanasie) is also legal in Luxembourg under strict conditions — one of very few countries in the world. Advance directives should be registered with your GP and the national healthcare system.
Useful Links
Estate & Inheritance
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