LUXEMBOURG LOAN FOR FOREIGNER
In Luxembourg, a loan for non-resident is by definition a funding facility granted thanks to a Luxembourgian bank or any kind of Luxembourgian lender helping a borrower who has got a residency in the Grand Duchy as well as for foreigner.
In Luxembourg, the loan for non-resident is aiming to provide with funds to a person who is not residing in the country and being foreigner because facing some obstacles to obtain financing in his/her home country.
In Luxembourg, a loan for foreigner without address will require terms and conditions that can vary significantly based on the lender’s policies and the borrower’s nationality, with potential differences in interest rates, repayment schedules, and required documentation, reflecting the increased risk perceived by the lender.
In Luxembourg, the loan for non-resident is often subject to regulatory oversight to ensure compliance with both Luxembourgian and international financial regulations, aimed at preventing money laundering and ensuring the financial system’s integrity.
Is it possible to obtain a loan in Luxembourg as a non-resident ?
No — it is not possible for a non‑resident foreigner to obtain a personal loans but only mortgages in Luxembourg, under enhanced conditions that reflect the higher risk for lenders. Here’s a breakdown of what’s typically required:
Personal Loans for Non-Residents
- Luxembourg banks rarely extend personal loans to individuals who are not residents, as legal residency is generally a requirement for approval.
- To qualify, you typically need to have stable residence in Luxembourg, an established banking relationship, and solid proof of repayment capacity.
Mortgages for Foreign Buyers
- Luxembourg banks do offer mortgages to non-resident foreign buyers, including EU and non‑EU applicants .
- Typical Loan-to-Value (LTV) for non-residents ranges from 60% to 80%, based on nationality and financial profile. This means a higher down payment (20–40%) is required.
- Applicants need to provide proof of stable income, credit history, deposit funds, and possibly translated documents tailored for international cases .
- Affordability rules generally expect mortgage repayments to be no more than 35–45% of monthly income.
- Some banks, such as BIL Wealth Management, offer “International Mortgages” aimed at buyers regardless of residency, with tailored advice and support .