In Luxembourg, an office lease is a common law lease, applicable to non-commercial activities or commercial activities with no direct contact with the public. It is therefore neither a residential lease nor a commercial lease.
One of the major advantages? A high degree of contractual freedom. Here, landlords and tenants are free to define the terms of the contract, without a strict legislative framework. This means they can be adapted to the specific needs of each business... provided they are properly negotiated from the outset.
2. What is the duration of an office lease in Luxembourg?Unlike a commercial lease, which is subject to certain specific requirements, there is no minimum or maximum term for an office lease. It is all a matter of agreement between the lessor and the lessee.
In practice, we often see three-year leases, but it is possible to opt for a lease of indefinite duration. If the tenant remains after the expiry of a fixed-term lease and the landlord does not object, the contract is tacitly renewed on the same terms.
3. How do I terminate an office lease?An office lease terminates automatically on the agreed date, without any notice period.
But be careful: unilateral early termination is not possible, unless a specific clause has been included in the contract. In other words, if the tenant wishes to leave before the end of the lease, he or she must obtain the landlord's agreement... or hope to have negotiated an exit clause when the contract was signed.
In the case of an open-ended lease, termination is more flexible:one month's notice is enough to leave the premises.
4. Is it necessary to register an office lease in Luxembourg?Yes, and this is a legal requirement. All common law leases must be registered with the Administration de l'enregistrement, des domaines et de la TVA (AED).
Who has to do this?It is usually the lessor who registers the lease, but if the lessor fails to do so, the lessee may also do so.
The lease must be registered within three months of signing. Unlike residential leases, there is no specific registration fee for office leases, which simplifies the procedure.
5. What is the difference between an office lease and a commercial lease?The two leases have very different purposes:
Commercial lease: designed for shopkeepers and tradesmen, it offers greater protection for the tenant and a right to renew the lease. The minimum term is usually 9 years. Office leases: designed for companies and the self-employed without direct customer contact, these are much more flexible and less regulated.The status of the tenant also plays a role:
A commercial lease requires registration with the Registre du Commerce et des Sociétés (RCS). An office lease can be signed by an individual or a legal entity, with no specific RCS registration requirement. 6. What information must be included in an office lease?Like any contract, a lease must be clearly worded to avoid any ambiguity. Here are the compulsory details:
Identity of the lessor and lessee (name, address, company number if applicable). Duration of the lease and effective date. Amount of rent and charges (fixed or provisional). Indexation of rent, if applicable (in relation to the consumer price index in Luxembourg). Precise description of the rented premises (surface area, equipment, car park, etc.). Termination and renewal arrangements. Maintenance and repair obligations (to be borne by the lessor or the lessee). Conditions governing the use of the premises (e.g. prohibition on carrying on a commercial activity).A well-drafted lease is your guarantee of avoiding disputes and unpleasant surprises.
7. How does a warehouse lease work?A warehouse lease, like an office lease, is a lease governed by ordinary law. It is therefore not subject to the constraints of a commercial lease, unless the warehouse is attached to a business.
In that case, it becomes part of the commercial lease and follows its own specific rules.
Otherwise, the terms of a warehouse lease are highly flexible: duration, rent, charges, termination, etc. Everything is negotiable between the tenant and the owner.
8. To sum up...An office lease in Luxembourg is a flexible and adaptable contract, offering the parties a great deal of freedom. Unlike a commercial lease, it does not protect the tenant in the long term, but it does allow adaptation to the needs of businesses.
To remember :
✅ No minimum term imposed, but often set at 3 years.
✅ Early termination only if provided for in the contract.
✅ Obligation to register the lease with the AED.
✅ Ideal for businesses with no contact with the public.
In short, if you're looking for an office for your start-up or consultancy, an office lease in Luxembourg is a flexible solution. But be careful about the clauses in the contract, or you could find yourself stuck like in a traffic jam on the A6 on a Monday morning! ????????
