Settling in Luxembourg: the complete guide to procedures and insurance
To settle in Luxembourg, five steps are a priority: declare your arrival in the municipality (within 3 to 8 days depending on nationality), open a Luxembourg bank account, check your affiliation with the National Health Fund (CNS) via the employer, take out home insurance, required by most landlords, and insure your vehicle (car liability being the only legally mandatory insurance in the Grand Duchy).
↓ What are the conditions for settling in Luxembourg?
↓ How to register with the municipality?
↓ The steps following registration
↓ What insurance and protections should you obtain as a new resident?
↓ What are the advantages of living in Luxembourg?
↓ Frequently asked questions about settling in Luxembourg
☐ Declare your arrival in the municipality (8 days EU / 3 days third countries)
☐ Open a bank account in Luxembourg
☐ Verify your CNS affiliation via your employer
☐ Take out home insurance before the keys are provided
☐ Check your liability cover for private life
☐ Register and insure your vehicle (CL mandatory) within 6 months
☐ Exchange your licence if you come from a third country (within 1 year)
☐ Enrol your children in school
☐ Structure your savings and pension
Formalities vary depending on your status. An EU citizen has the right of free movement; a third-country national must obtain a residence permit before entering the territory.
If you are a citizen of the European Union or a national of Norway, Iceland, Liechtenstein or Switzerland, a valid identity card or passport is sufficient to enter and stay. You must then declare your arrival to the municipal administration of your place of residence within 8 days of your entry into the territory. This obligation applies to all natural persons concerned: employee, self-employed, student or family member of an EU citizen. The arrival declaration will allow you to obtain a registration certificate, an essential document for your subsequent procedures (opening of bank account, registration with social security, etc.).
The procedure is stricter for third-country nationals. You must apply for a temporary residence permit before entering Luxembourg, from the Directorate General for Immigration of the Ministry of Foreign Affairs. This request for a residence permit is made from your country of origin, via a Luxembourg diplomatic or consular office.
The temporary residence permit, valid for 90 days, then allows you to enter the territory. Once in Luxembourg, you have only 3 days to file your arrival declaration with the municipality. You will need to provide your original residence permit, valid passport and, if applicable, documents translated by a sworn translator. This procedure also applies in the context of family reunification.
|
Criterion |
EU citizens |
Third-country nationals |
|
Entry document |
Valid ID card or passport |
Passport + prior authorisation to stay |
|
Deadline for declaration |
8 days after arrival |
3 days after entry |
|
Preliminary procedure |
None |
Request for residence permit before entry |
|
Translation of documents |
Not required |
Sworn translation if necessary |
|
Residence permit |
Recording certificate |
Residence permit required |
Registration with the municipal administration is the first official step of your installation. You are registered in the National Register of Natural Persons and this formalizes your presence on the territory.
To proceed with your arrival declaration, you need to gather several essential documents:
- A valid ID (ID card or passport)
- A certificate of accommodation signed by the owner, or a lease agreement if you are a tenant
- For third-country nationals: temporary residence permit
- Additional supporting documents requested by your municipal administration
The arrival declaration must be made promptly after your installation. EU citizens have a period of 8 days following their entry into Luxembourg, while third-country nationals must come forward within 3 working days.
Go to the population office of your municipality of residence, or to the Bierger-Center if you live in Luxembourg City. After examining your file, the administration will issue a registration certificate and a certificate of residence to you. The latter attests to your legal domicile and will be useful for many subsequent steps: opening a bank account, enrolment of children in school or affiliation with social security.
If you move from one municipality to another, the procedure is different: it involves a declaration of change of habitual residence. Visit the population office of your new municipality with your identity card, your previous registration certificate and proof of residence. You will receive a new residency certificate. This procedure can be carried out online via MyGuichet.lu.
Then remember to inform: your employer, your bank, your insurers (home, CL, car), the Administration of direct contributions and, if applicable, the Société nationale de circulation automobile (SNCA) for your registration card, within one month.
If you own a vehicle, apply for a residential parking decal from your new municipality.
Once the municipal declaration has been done, several formalities must then occur:
- Open a Luxembourg bank account: essential to collect your salary and domicile your deductions. Banks require identification, proof of address and an employment contract. Some allow online opening before arrival.
- Check your affiliation with the CNS: for employees, it is automatic: your employer registers you with the Central Social Security Centre (CCSS), which assigns you your registration number. Confirm it within the first few weeks.
- Register your vehicle with the SNCA within six months of importation.
- Exchange your license if necessary.
- Enrol your children in school: with the municipality for basic education (ages 3 to 11), directly with the school for secondary education.
- Declare your dog, with veterinary certificate and certificate of civil liability insurance.
It is precisely at this stage that insurance issues become concrete.
Home insurance is not legally mandatory in Luxembourg, but almost all landlords require it in the lease agreement. It protects your home and belongings from common hazards like fire or water damage. In the event of a claim, the tenant is presumed responsible unless proven otherwise, hence the importance of this cover.
Civil Liability in Private Life: The Often Forgotten Contract
Liability insurance, not always included in the home contract, is highly recommended: it covers property damage or bodily injury that you could unintentionally cause to third parties in your daily life. It is also required for the declaration of a dog. It is automatically included in Baloise's home contract.
Getting around: registration and car insurance
Automobile liability insurance is legally mandatory before circulating with a vehicle, in accordance with the law of 16 April 2003 on compulsory civil liability insurance for motor vehicles. No waiver is possible.
Two things to know before comparing offers:
- Higher premiums than elsewhere. This is notably due to the small size of the country and the absence of a deductible for most contracts.
- A specific bonus-malus system. A driver without a driving history starts with a coefficient of 11. Each claim-free year lowers it by one degree (up to a maximum of -3), while each responsible accident adds 3 points.
Two guarantees often underestimated
- Protected Driver: covers the driver himself in the event of an accident, including liability. Basic contracts generally exclude this protection.
- Value as new: reimbursement at the purchase price in the event of an accident or theft involving a recent vehicle.
Good to know: since 2020, all public transport is free throughout the country (buses, trams, national trains). A vehicle is therefore not always essential depending on where you live and work.
Preparing for your financial future: savings and pensions
Moving to Luxembourg often marks the beginning of a long-term life project. The Grand Duchy offers an attractive tax framework for life insurance and pension products.
Baloise Pension Plan
This supplementary pension scheme insurance policy enables you to build up supplementary savings for your retirement. The premiums are invested in line with your risk profile, and you have access to various investment management options: managed, profile-based or self-directed, with access to funds and ETFs. The lump sum can be paid out as a lump sum, a monthly annuity or in instalments, between the ages of 60 and 75. Premiums are tax-deductible up to €4,500 per year per taxpayer. The tax treatment on withdrawal will depend on your country of residence.
Baloise Life Plan
This policy combines savings and personal protection. The capital is invested in line with your risk profile: a guaranteed rate of return (with the possibility of profit-sharing) or access to diversified investment funds, including sustainable options. Optional cover available: accident, hospitalisation, disability, critical illness, and supplementary death benefit.
Premiums are tax-deductible from €672 per year, depending on your family circumstances (Article 111 of the Income Tax Act), for a policy with a minimum term of 10 years.
Good to know: some of the premiums paid for your insurance policies may be deducted from your tax return.
- Luxembourg is a country where life is good and which often tops the rankings in various quality-of-life surveys.
- Luxembourg has towns on a human scale, plenty of natural spaces and high-quality infrastructure, and benefits from a central geographical location in Europe, making it a pleasant place to live.
- Family life is made easier thanks to parental leave, financial support, childcare facilities and a diverse education system (state, private, international and European schools).
- Good social security: health cover, child benefit and pensions.
- Free public transport throughout the country since 2020
- A multicultural and multilingual environment, with over 170 nationalities
- Average salary: €6,327 gross per month (latest Statec survey)
- Minimum wage: €2,771.33 per month for an unskilled worker (source: Labour and Mines Inspectorate)
Home: 100% digital home insurance
Whether you’re a tenant or a homeowner, flood cover and 24/7 assistance are always included.
Drive: car insurance that automatically includes ‘Driver Protection’ cover, as well as 24-hour breakdown and accident assistance, both in the Grand Duchy and abroad.
Pension Plan: retirement savings insurance in Luxembourg.
Build up your retirement savings by investing from as little as 50 euros a month.
School enrolment is done in your municipality of residence for basic education (ages 3 to 11), which manages the public schools in your area. For secondary education, you must contact the chosen institution directly. The Luxembourg education system is multilingual: children learn in Luxembourgish, German and then English, which may require support via the School Integration and Reception Service (SIA) for newcomers. The necessary documents include proof of address and identification of the child.
If you have a driving licence issued by a Member State of the European Economic Area, it is recognised in Luxembourg and the exchange remains optional (unless infringed). On the other hand, third-country nationals must have their licence transcribed into a Luxembourg licence within one year of their installation, via the Société nationale de circulation automobile (SNCA). Required documents include the original licence, ID, and proof of residency. Find all the details about driving licences in our blog post.
No, it is not imposed by law. But it is required in practice by almost all owners and by banks before signing a lease or a mortgage. In the event of a claim, the tenant is presumed responsible unless proven otherwise.
Only motor vehicle liability insurance is legally mandatory, to the extent that you intend to circulate using a vehicle (law of 16 April 2003). Civil liability in private life is not mandatory but strongly recommended.