Publié le 24 February 2021

Deduct an old-age pension contract from the tax return in Luxembourg!

There are a few options for making additional financial provisions for the years in retirement. By taking out an old-age pension contract, you have not only provided for the future, but you can also benefit from it now by deducting the contract on your tax return in Luxembourg.

What are the conditions for benefiting from a tax advantage with an old-age pension contract?

In order to benefit from a tax advantage, a few conditions must be met. First, the minimum term of the contract must be at least 10 years, as well as the payout must be payable earliest at the age of 60 and latest at the age of 75. In addition, early repayment of savings must be excluded in the contract, except in the event of serious illness or invalidity. Moreover, the age limit for taking out a contract is 65 years as of January 1 of the year in which the old-age pension contract is taken out.

The deduction is available to all old-age pension contract subscribers who are resident taxpayers in Luxembourg, as well as to non-resident taxpayers who have chosen a tax treatment that is equal to that of resident taxpayers and who meet the conditions for equal treatment.

How much can be deducted from the tax return in Luxembourg?

Since the fiscal year 2017, the maximum deductible amount for the old-age pension contract corresponds to 3,200 € per year for the taxpayer, no matter his age, and 3,200 € for the partner. A married couple can therefore benefit from a deduction of €6,400, which corresponds to a tax refund of up to €2,688.

To include your old-age pension contract on the tax return, enter the amount for the pension on taxx.lu in the "Special expenses" form under “Old-age pension".

taxx.lu will automatically complete the right amounts in your Luxembourgish tax return.