In Luxembourg, several categories of expenses can be deducted from your taxable income. Understanding which ones apply to you is the first step to leaving nothing out of your tax return.
The main families of deductions
- Special expenses (art. 109 et seq. LIR): insurance premiums, old-age provision contributions (art. 111 bis), interest paid, donations, annuities…
- Income-related costs: costs linked to earning the income (home-to-work travel, professional contributions, etc.).
- Extraordinary charges: unavoidable expenses that exceed the normal burden (medical costs, childcare, dependency situations…).
- Loan interest and insurance: in particular linked to housing.
Insurance and retirement savings
Some insurance premiums and retirement savings contributions are among the most common levers: outstanding balance insurance on a home loan, old-age provision (art. 111 bis), life/death insurance premiums, personal liability, etc. Each scheme has its own conditions and its own deduction limit.
A ceiling is a deduction limit, not a promise of tax savings. The actual saving depends on your income, your tax class and your personal situation.
How do you know what applies to you?
The useful combination of deductions varies depending on whether you are a resident or cross-border worker, single or in a couple, an owner or a tenant. At D&D Assurances, an approved Foyer agency, we help you take stock of your situation, without jargon, during a free review.
General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.