Insurances

• Which are the tax-deductible insurances?

  Discover which insurances are tax-deductible in Luxembourg with our comprehensive guide.Popular

• What amount should I indicate for my Foyer insurance?

  On some tax certificates issued by Foyer, you will find two separate sections relating to premiums paid. "Primes déductibles au titre des dépenses spéciales": Only the total amount shown in this section may be included in your tax return as a special expense. "Primes éventuellement déductibles comme dépenses d’exploitation ou frais d’obtention" : The amounts shown in this section are generally only deductible if you are self-employed. In this case, these premiums may be conSome readers

• Is it possible to deduct the "ACL" (Automobile Club) membership fee?

  No, you cannot deduct the ACL membership fee.Some readers

• Is it possible to deduct the "Luxembourg Air Rescue" fee?

  No, you cannot deduct the "Luxembourg Air Rescue" fee.Few readers

• What is an outstanding balance insurance?

  An outstanding balance insurance serves as security for the payback of a real estate loan of a property for personal use. So, in order to provide for the case of death or invalidity and to not leave any liabilities to the surviving family members, it is possible to take out an outstanding balance insurance and to deduct the insurance in the tax return in Luxembourg. However, a distinction must be made between two cases: Annual payment of the outstanding balance insurance: In thFew readers

• Where should I indicate the CMCM contributions?

  The CMCM contribution should indicated in the "Special expenses" form under "Insurance premiums". CMCMFew readers

• Can I deduct my car lease?

  As a general rule, if you are an employee, car leasing is not tax-deductible. However, one exception is possible: If you manage to obtain a certificate from your leasing insurance company detailing the premiums paid for the tax year, i.e. the share of third-party liability and the protected driver, these could possibly be taken into account as a tax deduction.Few readers

• Where do I indicate insurance?

  Few readers

• Where should insurances be indicated?

  Insurance should be entered in the "Special Expenses" section under the category "Insurance Premiums". This section allows you to declare contributions paid for the following types of insurance: Accident insurance Life insurance Home insurance (only the liability coverage part) Car insurance (only the liability coverage and driver protection!) Supplementary health insurance (DKV, CMCM...) Disability / pension / work incapacity insurance Outstanding balance insurance (single pFew readers

• Can I still deduct my supplementary health insurance contributions if I have been reimbursed by CGDIS?

  Yes, but only the part that is not reimbursed. If you receive a reimbursement of 50% of your supplementary health insurance contributions from the CGDIS, you can only deduct the remaining 50% as special expenses on your tax return. If you declare the full amount of the contributions despite the partial reimbursement from CGDIS, the tax authorities will recalculate the following year, and you will have to repay the undue deduction.Few readers

• Is vehicle damage insurance (Casco) deductible?

  No. Casco insurance premiums (partial or full) covering material damage to your vehicle are not deductible in Luxembourg. However, other types of insurance can be deducted, such as : third-party liability insurance, life insurance, accident or health insurance policies,Few readers

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Deductible limits and minimum fixed amount

• What is the deductible limit for insurance and interest expenses?

  Find out the deductible limit for insurance and interest expenses on your Luxembourg tax return with our detailed guide.Some readers

• What is the minimum deduction for special expenses?

  Learn about the minimum deduction for special expenses on your Luxembourg tax return with our clear and concise guide.Some readers

• How is the deductible limit for outstanding balance insurance (single premium) calculated?

  The deductible limit for outstanding balance insurance (single premium) is calculated as follows: €6,000 + €1,200 per child in the household an additional 8% for each year after the policyholder reaches the age of 30. Here's an example: A family of 4: The mother, aged 38, Father, aged 40 Two children They can deduct up to €24,960 in total. Explanation: Increase for the father aged 40 : 6 000€ + 2 x 1 200 € = 8 400 € 8% x 10 x €8,400 = €6,720 Increase for the 38-year-oldFew readers

Interest paid (consumer loans)

• Are the interests paid on my credit card deductible?

  Yes, the interests paid on your credit card are deductible. You can deduct them on the "Special expenses" form under "Debtor interests".Some readers

• Where should the interests paid on a consumer loan be indicated?

  Interests paid on a consumer loan (e.g. for a vehicle) are to be indicated on the "Special Expenses" form under "Debtor interests"Some readers

• Can I deduct the interest paid on a student loan?

  Yes, interest paid on a student loan is deductible in the same way as a consumer loan (e.g. car loan). Where should the interests paid on a consumer loan be indicated?Few readers

Old-age pension

• What is the deductible limit for old-age pension contracts?

  The deductible limit for the old-age pension contract is 3,200 € per year per adult person. Kids are not taken into consideration. Old-age pension contracts are to be registered on the "Special Expenses" form under "Old-age pension".Some readers

• What is a private pension contract (111bis/111ter)?

  For more information, click here: Private pension planFew readers

• Where do I indicate my old-age pension savings?

  In the "Special expenses" category, click on "Add a private pension plan".Few readers

• 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,Few readers

• Can I still deduct my old-age pension contributions if I have received a refund from CGDIS?

  Yes, but only the part that has not been reimbursed. If you receive a refund of 50% of your pension contributions from CGDIS, you can only deduct the remaining 50% as special expenses on your tax return. If you declare all the contributions despite the partial refund from CGDIS, the tax authorities will recalculate them the following year, and you will have to repay the undue deduction.Few readers

Home savings

• What is the deductible limit for home savings contracts?

  The maximum deductible amount is set according to the age of the subscriber : The higher deductible amount also applies in the calendar year in which the subscriber turns 41. This amount can be increased by its own amount for: Here is an example for a couple without chilSome readers

• 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? Minimum duration Conditions relating to the use of the fFew readers

• Can I deduct a foreign home savings plan?

  Only Luxembourg home savings plan contracts can be deducted from your Luxembourg tax return. French contracts (PEL) cannot be deducted.Few readers

• Where do I indicate my home savings plan?

  Few readers

• What is a home savings contract?

  The purpose of a home savings contract is to build up capital to help you finance the acquisition, renovation or loan repayment of your home. Payments into a home savings contract are deductible on your tax return, so you can reduce your tax burden considerably.Few readers

• How should I use the funds in my home savings contract when it comes to maturity?

  The funds in your home savings contract must be used for one of the following purposes in order to qualify for tax deductions: The construction, acquisition, maintenance, repair or conversion of a flat or house that you personally use as your principal residence; The acquisition of land to build a flat or house for your own personal use; The financing of a photovoltaic or thermal solar installation integrated into a flat or house used as your own home; Repayment of loans or bondsFew readers

• What are the tax-eligible uses of funds from a home savings scheme?

  Acceptable uses of home savings scheme funds: Construction or purchase of a personal residence. Renovation, maintenance, or repair of an existing home. Acquisition of land to build a personal residence. Installation of solar panels or thermal systems integrated into the home. Repayment of loans related to the above purposes. Not eligible: Buying cars or personal items. Financing secondary residences, rental properties, or commercial buildings.Few readers

Donations

• Where should donations to an association be indicated?

  Donations are to be indicated on the "Special Expenses" form under "Donations & liberalities". To be deductible as special expenses, the annual total of donations must be equal to or greater than 120€.Some readers

• Which donations are tax-deductible?

  The official lists can be found under the following links: https://impotsdirects.public.lu/fr/az/l/liberadons/organismes-agrees.html https://impotsdirects.public.lu/fr/az/l/liberadons/ongd.html https://impotsdirects.public.lu/fr/az/l/liberadons/sis.html https://impotsdirects.public.lu/fr/az/l/liberadons/ue-aele.htmlFew readers