Posted on 24 February 2021
Deduct a car loan from the tax return in Luxembourg!
You have taken out a car loan and thereby you would like to save taxes? The tax return in Luxembourg allows you to deduct the interest on debt from your car loan.
How much of a car loan can be deducted from your tax return in Luxembourg?
Since the 2017 tax year, the same deductible amount applies to interest on debt and insurance premiums.
In Luxembourg, the total amount that can be deducted from the tax return is 672€ per year, which multiplies by the same amount per person in the household.
A 4-person household (2 adults and 2 children) can thus benefit from a deduction of up to 2,688€ (4 x 672€) for debt interest and insurance premiums together.
With taxx.lu, deducting your car loan from the tax return in Luxembourg becomes child's play!
On an annual basis, you receive certificates from your bank with all the required information. You indicate this information in the "Special expenses" form under "Debtor interests" on taxx.lu.
taxx.lu will automatically insert the maximum amounts from your car loan to be deducted from your tax return in Luxembourg.