The old-age provision under article 111 bis LIR is a retirement savings contract that lets you deduct your contributions from your taxable income while preparing for the future.
The principle
You pay into a dedicated contract; the payments are deductible as special expenses, up to an annual ceiling. The savings build up until the maturity set by the contract.
The deduction is capped at an annual ceiling per taxpayer, set by law (€4,500 per year since the 2026 tax year, up from €3,200 previously, and regardless of age, subject to legislative change). This is a deduction limit, not a promise of tax savings: the actual saving depends on your tax rate and your situation.
Who is it for?
The scheme is aimed at residents and at cross-border workers with resident-equivalent status. It combines a long-term savings goal with an annual tax advantage.
Points to note
The payout at maturity and its taxation follow specific rules (see the dedicated article). Before signing up, it is important to check that it fits your time horizon and budget. We discuss this together, with no obligation.
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.