Are all pension contracts deductible in Luxembourg?

Not all pension contracts are deductible in Luxembourg.

To benefit from the deduction, the contract must strictly meet the conditions of article 111ter L.I.R. and be designed to provide for retirement.

A similar product taken out abroad is not automatically eligible.

For a foreign product to be deductible, it must :

• be specifically designed to provide for old age within the meaning of article 111bis L.I.R.,
• accept only deductible payments within the conditions and limits set by law,
• be offered by an approved provider authorised to operate in Luxembourg.

The providers referred to in article 111ter L.I.R. must draw up a certificate each year attesting :

that the contract complies with all the legal conditions,

the amount of payments made into the Luxembourg sub-account of a PEPP account during the year.

This obligation applies to :

• providers established in Luxembourg,
• providers authorised in another EU Member State and authorised to operate in Luxembourg,
• provided they are recognised as PEPP providers under Regulation (EU) 2019/1238.

Updated on: 13/08/2025