Overview of the Law of 26 July 2023, amending the Law of 2 September 2011 regulating access to the professions of craftsperson, merchant, manufacturer as well as certain liberal professions, as amended (the "Business Permit Law").
The 2023 law established and defined a new professional activity, that of "real estate business introducer" (apporteur d'affaires immobilier). The law defines this profession as "the commercial activity of putting a real estate agent or developer in touch with any other person wishing to sell or rent a property" (Article 2, point 1°bis of the Business Permit Law).
Any enterprise (natural or legal person) wishing to operate as a real estate business introducer must satisfy a set of criteria listed in Article 4 of the Business Permit Law, namely:
- Meet the requirements for professional qualifications and good repute;
- Ensure effective day-to-day management at all times;
- Have a real link with the enterprise; and
- Pay all social security contributions and taxes, whether in his/her/its own name or through a company he/she/it manages or has managed.
It should be noted that the enterprise must have a fixed place of business in Luxembourg, as defined by Article 5 of the Business Permit Law.
Finally, with regard to the professional qualification requirement in particular, the 2023 law stipulates that the real estate business introducer must successfully complete a specific accelerated training course covering at least professional ethics and Luxembourg legislation on " mandates, sales, registration fees, leases, land-use planning, building permits, operating permits, sales of buildings to be constructed, guarantees relating to buildings to be constructed, value-added tax, co-ownership, commercial practices, remuneration of real estate agents and the fight against money laundering ".
In practice, this training is provided by the Luxembourg Chamber of Commerce: https://www.houseoftraining.lu/training/acces-reglemente-aux-professions-de-l-immobilier-1737.
Unlike real estate agents, property administrators, condominium managers and property developers, the 2023 law does not require real estate business introducers to have professional liability insurance covering their professional commitments.
However, it may be useful to consider taking out such insurance.
Finally, all real estate business introducers must register for VAT and also have merchant status. If he or she also works as a salaried employee, that person will need to check for any potential incompatibilities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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