Posted on 27 February 2024

Tax Deductions on Your Luxembourg Tax Return: What You Need to Know

Discover which expenses can be deducted on your Luxembourg tax declaration. Learn how to maximize your tax savings and navigate the Luxembourg tax system with our practical tips.

The Luxembourg tax return allows you to deduct a number of costs incurred by your household.

Here are a few examples:

Under "Acquisition fees" :

(Flat-rate minimum €540)

Contributions paid to professional chambers and unions
Books used almost exclusively for professional purposes
Professional clothing
Work tools used almost exclusively for professional purposes
Continuing education expenses necessary for the performance of your profession.

Under "Special expenses" :

(Flat-rate maximum €672 per person in the household)

Debit interest on consumer loans
Insurance contributions and premiums

Here are a few examples:
o Car insurance (only third-party liability and protected driver)
o Home insurance (only third-party liability)
o Supplementary health insurance
o Life insurance

Housing savings

(from age 18 to 41 max. €1,344)
(over the age of 41: €672)

Old age pension (max. €3,200 per taxpayer)
Donations (minimum total of €120)

Under "Main residence" / "Future main residence" :

Interest charges relating to property loans for your principal residence

Limit depending on the year you moved in and the composition of your household:
o First 5 years: €3,000
o Between 6 and 10 years: €2,250
o After 10 years: €1,500

The year of acquisition of the principal residence only:

Notary fees for opening a loan
Bank commission

Under "Allowances" :

Domestic help and care and/or childcare expenses (max. €5,400)

Here are a few examples:
o Nursery
o Shelter home
o Cleaning company or staff

Under "Other" :

Extraordinary expenses

(These expenses are deductible provided they reach a certain minimum threshold. See here: https://help.taxx.lu/en/article/why-are-my-extraordinary-charges-not-included-in-my-tax-return-1207aiv/)

o Medical expenses not reimbursed by the CNS or supplementary health insurance (including pharmacy costs)
o Divorce costs
o Civil court costs
o Funeral expenses
o Maintenance of persons unable to claim maintenance
o Diets (on prescription)

Pensions and permanent expenses (in the event of divorce)
Personal contributions
Children not forming part of the household

Don't know where and how to declare the many deductions? Use taxx.lu to help you fill in your tax return easily!