Posted on 24 February 2021

Deduct insurances on the tax return Luxembourg!

Most people pay regular insurance premiums, but did you know that you can easily save taxes on insurance premiums by deducting them on your tax return?

Deductible premiums and contributions are those related to any of the following insurance policies:

life;
death;
outstanding balance insurance;
accident;
bodily injury;
disability;
illness;
civil liability.

However, premium payments and contributions for life insurance policies are deductible on the tax return if the contract has been in force for at least 10 years.

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

Since the fiscal year 2017, deductible insurance premiums and debt interest are subject to the same maximum amount, which is 672€ per year. This amount will increase by the same value per person in the household.

Example:

A 4-person household (2 adults and 2 children) can thus benefit from a deduction of 2,688€ (4 x 672€) for interest on debt and insurance premiums in total, which corresponds to a tax refund of up to 1,128.96€.

With taxx.lu deducting insurances from the tax return in Luxembourg it’s child’s play!

At the beginning of the year, you will receive certificates from your insurance company stating the amounts you can deduct. Based on these values, you fill in the "Special expenses" form on taxx.lu.

Our system automatically calculates and inserts the deductible amounts of insurances into your tax return.