Sell or renttool

Should I sell or rent my home?

About this model and its assumptions

This model has been reviewed on the 19th March 2024.


Our model computes the financial consequences of keeping your home as an investment in comparison to selling it now, while it is still considered a primary residence.

The model is built on the information you entered on your current home, its financing, the new home you intend to buy, its financing and your personal situation. The model computes all the associated revenues and costs of selling your current home now or keeping, renting and selling your current home in the future while it became a buy-to-let investment.

Our model takes into account the tax payable/savings resulting from each situation based on the actual and applicable tax rates & deductions in Luxembourg. Please refer to the Nexvia Tax Smart Card for further information.

It is important to note that the calculated tax impact in our model is the one applicable to Luxembourg residents and taxpayers, owning the property directly. The tax impact may differ according to your personal situation (i.e. country of residence, existence of taxable income in Luxembourg or recourse to a holding company). We advise you to contact Nexvia to confirm your tax status in relation to this model or to get further information in relation to your country of residence.

Net capital gain corresponds in this model to the difference between the Acquisition price, including the estimated acquisition costs, and the Sale price of the property, net of deductible agency fees and capital gain tax.

New capital gain corresponds to the increase in taxable capital gain resulting from the Projected sale price increase.

Net rental income corresponds to the free cash flow generated while keeping your home and renting it, taking into account the projected rent. The Net rental income calculation includes the interests paid on the home loan but excludes the principal payment in our model, to be considered as an investment and not as a cost of holding the home as an investment. The tax on rental income, or the potential tax savings, based on the specific situation of the property and the owner is also taken into account in the Net rental income calculation.

Total gain is the net gain derived from (i) the capital gain extracted from the sale of the property, whether as your primary residence or as a rental investment after a rental period, and (ii) the rent of the property during the rental period before sale. Total gain is the addition of Net capital gain and Net rental income.

The extra cost of keeping your current home as an investment is the average cost on the investment period, or until full repayment of the loan. Should this be the case, the period after full repayment of the loan is not considered in our calculation.

The equity locked in your home corresponds to the net proceeds you would get after repayment of your remaining mortgage balance and payment of the agency fee while selling your home now.

Note that our model does not consider any potential indemnity for early repayment of your loan.


Assumptions to compute the home acquisition costs are those used in our Capital gain tool, available in the Tools section of our website. You can find them in the "About this model" part of the Capital gain tool.

The reevaluation factors used to calculate the Capital gain tax are based on the rates applied by the Luxembourg Tax Administration. The reevaluation factors are extracted from the latest forms published by the Luxembourg Tax Administration applicable for the sale of property (700F). We applied prospectively the factors for a similar holding period.

Our management fee estimate in our model is one month of rent, including VAT, which corresponds to market practice.

Auxiliary costs are our estimate of property tax, communal charges, maintenance & repairs and owner's insurance premium not rechargeable to the tenant. We believe our estimate to be very close to reality. For further information about the auxiliary costs, do not hesitate to contact Nexvia.