Posted on 08 March 2022

How to reduce your taxes?

By now you know all about optimization through real estate purchases and sales, but you still think your taxes are too high. You hear around you that you can easily reduce your taxes, but you don't know where to turn for reliable information.
How can I effectively reduce my taxes? Where should you invest? We answer you!
There are several ways to reduce your taxes:


Interest expense and insurance

You can deduct the interest on your loans (other than a real estate loan). You can also deduct personal insurance: health insurance, car and home liability insurance, life insurance and credit life insurance. You have a limit of 672 euros per year and per person in your household.

Housing savings plan

The home savings contracts concluded in Luxembourg are deductible from your tax return, up to 1344 euros per year and per person if you are under 41 years old.
For more information, do not hesitate to consult our article dedicated to the home savings plan 

Private pension plan

This is a savings account to build up a private pension. From 50 euros per month, you can open an account for yourself and for your spouse if you wish (even if he or she does not work in Luxembourg). Depending on the premiums paid, you can deduct up to 3,200 euros per year per spouse, i.e. up to 6,400 euros for a couple taxed together!


Housekeeping, home help, child care

The expenses concerning your housekeeper are deductible on your tax return (provided that you declare the wages paid, of course). The same is true for home health care and childcare costs (at home or not). These expenses are deductible up to a maximum of 5,400 euros per year.
Would you like a personalized analysis of your tax optimization situation? With, you will know where you can save money thanks to the Opti-score!


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