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:
Retirement savings premiums: article 111bis of the Luxembourg Income Tax Code.
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:
- The minimum duration of the contract must be 10 years
- The contract must expire between the insured's 60th and 75th birthday
- There can be no early repayment of savings.
When the contract expires, the savings are taxed as follows:
- If you choose a capital payout, it will be taxable at only half the overall income tax rate
- If you choose a payout in the form of life annuities, only half of the annuity is taxable.
Premiums for life, death, accident, disability, sickness and civil liability insurance: article 111 of the Luxembourg Income Tax Law.
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.
The single insurance premium for the outstanding balance of your mortgage
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.
Home saving solutions via our partner Wüstenrot
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.
Calculate your maximum deductible amount
We will give you the maximum amount you can deduct of your taxes and your tax gain
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.
Taxes in Luxembourg: new tax deductions
- With the 2017 tax reform, the Luxembourg State intends to boost the purchasing power of taxpayers, residents, etc.
Financial investments that pay off
- Investment funds offer a promising return on your savings to make your money work for you, entitling you in some cases to tax deductions.
Contact an AXA Luxembourg agent
- In each region of the Grand Duchy, an advisor is at your disposal to offer you their services and expert advice on insurance solutions.