As a private individual, when you file your tax return, you can deduct your special expenses from your tax base.
Some insurance premiums are considered as special expenses: those that cover the person or their civil liability.
The following are deductible:
Anyone paying their taxes in Luxembourg has the possibility of deducting their retirement savings premiums (old age pension) from their taxable base.
Annual amount Maximum deductible € 3200 Regardless of age
The conditions to be met:
When the contract expires, the savings are taxed as follows:
Anyone paying taxes in Luxembourg has the possibility of deducting their premiums for life, death, accident, disability, sickness and civil liability insurance (car and home), paid to insurance companies authorised to practise and having their registered office in a Member State of the European Union, per member of the tax household.
Annual amount Maximum deductible* € 672 per household member (including children)
*The annual deductible limit also includes interest expense on consumer loans
Savings products very often include a death, accident and/or disability portion that is deductible under Article 111 of the Luxembourg Income Tax Code. The minimum duration of the contract must be 10 years (except for the Serena product).
In the case of car and home insurance, only the portion of the premium relating to civil liability and personal protection (passenger/driver) is deductible. Premiums related to material risks (damage, theft, fire, glass breakage, insurance, etc.) are not deductible.
If you pay the insurance on your mortgage as an annual premium, the premiums are deductible each year under section 111 of the Luxembourg Income Tax Code. (see table above).
If you have paid this insurance as a single premium, you are entitled to an exceptional increase in the limit:
This increase is only granted if the mortage concerns your main residence.
Note: If two "partner-spouses" are insured, the amounts indicated above may be doubled. However, the additional amount per child is only granted to one parent.
We offer home saving solutions through our partner Wüstenrot. Tax relief is possible via these solutions: the contributions paid on your policy are deductible from your taxable income. This deductible limit is in addition to other tax deduction options.
My maximum deductible amount
You can deduct ? € from your taxes
What might my tax savings be ?
You can save ? € for the 2019 tax year
Taking into account your family situation (see tables of annual limits), we have added up the following elements:
1. Maximum amount you can deduct annually in Retirement Savings
2. Maximum amount you can deduct annually with your other insurance policies
3. Maximum amount you can deduct annually from your home savings
If class 1
The tax gain was simulated on the basis of a fictitious income of €40,000, with a tax rate of 32% and on the basis of information provided by the taxpayer.
If class 1A
The tax gain was simulated on the basis of a fictitious income of €40,000, with a tax rate of 39 % and on the basis of information provided by the taxpayer.
If class 2
The tax gain was simulated on the basis of a fictitious income of €80,000, with a tax rate of 32% and on the basis of information provided by the taxpayer.