Tokenize Real Estate in Luxembourg

Yes. Luxembourg is one of Europe's most advanced jurisdictions: four blockchain laws since 2019 give DLT-registered securities full legal equivalence, and the Blockchain IV law of December 2024 expressly extends tokenization to real assets such as real estate. Security tokens are supervised by the CSSF, and EU MiCA applies to crypto-asset services.

Yes. Luxembourg places no nationality restriction on property ownership, and non-residents are taxed on Luxembourg real estate gains under the same rules as residents. Tokenized fractions and RAIF fund units can be distributed across the EU under MiCA passporting.

Luxembourg combines a clear legal framework (four blockchain laws, with Blockchain IV covering real assets), CSSF supervision, the world's leading fund-domicile ecosystem, and home-grown technology – Tokeny's T-REX (ERC-3643) standard for compliant security tokens. That mix lets issuers structure tokenized real estate and funds and distribute them across the EU.

The CSSF (Commission de Surveillance du Secteur Financier) supervises security tokens – which are treated like traditional securities under MiFID II – and is Luxembourg's competent authority under MiCA, which it has implemented into national law with a transition for existing providers to July 2026.

Capital gains on property sold within five years are taxed at progressive income-tax rates; after five years, a reduced rate (effectively half the marginal rate) applies, with an allowance of up to €50,000 every ten years (doubled for couples). Rental income is taxed at progressive rates. Confirm the treatment of a tokenized holding – and any fund structure – with a Luxembourg tax advisor.

Luxembourg saw its first blockchain real estate transaction in Belval in 2019, with fractional security tokens from €1,000. More recently, BlocHome tokenized the CLAPTON Residence using Tokeny's infrastructure, and platforms like Digibrixx let investors buy 'digital bricks' backed by Luxembourg property.