Home savings plan: What conditions must be respected and what are the penalties for non-respect?

The conditions

Duration:
The minimum duration is 10 years.

Use of funds:
The capital must be used for your own residence in Luxembourg or abroad for one of the 3 following options:
Acquisition (building or land)
Renovation or transformation
Reimbursement of a real estate loan

What are the consequences of not complying with the conditions?

Respected: Minimum duration
Not respected: Conditions relating to the use of the funds

Then: No longer possible to deduct home savings plans in the future


Not respected: Minimum duration
Respected: Conditions relating to the use of the funds

Then: Rectifying taxation of years in which deductions were made


Not respected: Minimum duration
Not respected: Conditions related to the use of the funds

Then, Rectifying taxation of years in which deductions were made
And, it will no longer be possible to deduct home savings plans in the future

Updated on: 05/03/2024