Posted on 24 February 2021
Deduct a building under construction from the tax return in Luxembourg!
Your house is currently under construction or renovation and you are impatiently waiting to move in? Did you know that you can deduct the interest on debt of a building under construction from the tax return in Luxembourg? So, you can save tax while waiting to move in.
How much can be deducted from the tax return in Luxembourg?
The interest on debt is even fully deductible if the building is under construction or renovation, or, it is finished but not yet occupied.
A couple with 2 children takes out a loan to finance their house, which is still under construction, causing an interest charge of €9,500. Here, the amount that can be deducted from the tax return is equal to €9,500.
With taxx.lu, deducting a building under construction is child’s play!
To insert your building under construction on your tax return, the Form 100, you have to go to taxx.lu and check the appropriate box in the category "Real estate in 2020" in the "Tax situation" form.
Then, you can fill in the "Real estate" form to deduct your debt interest from your tax return in Luxembourg. You can find all the required information on your bank's annual certificate.