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Have your children looked after and pay less tax
Childcare expenses in Luxembourg: learn how to deduct up to €5,400 per year, reduce your taxes and easily optimise your tax return.
Do you have your children looked after while you’re at work? Good news: in Luxembourg, these costs can significantly reduce your tax bill.
Many parents don’t know that childcare expenses are tax-deductible. Here’s everything you need to know to benefit from this measure.
Who can benefit from this deduction?
You are eligible if you are:
- A Luxembourg resident or a cross-border worker
- A parent of one or more children who require childcare
- Able to provide proof of the expenses incurred
Which types of expenses are deductible?
Childcare expenses cover amounts paid for:
Approved childcare structures
- Crèches and collective childcare centres approved by the State
- Day-care centres (Maisons Relais)
- Approved childminders providing daytime or overnight care
- Childcare services offered by recognised organisations
Important information
To be deductible, these childcare structures must be officially approved by the Luxembourg authorities. Foreign childcare providers are also accepted if they are approved by the competent authority in their country.
What is NOT deductible
Be careful, some expenses are not covered:
- Care provided by family members (grandparents, uncles, aunts)
- Occasional undeclared babysitters
- Private lessons or extra-curricular activities
- School fees
How much can you deduct?
This is where it gets interesting! There are two options to deduct your childcare expenses:
Option 1: Flat-rate deduction (recommended in most cases)
- Maximum amount: 5.400€ per year
- Monthly limit: 450€ per month
Concrete example:
If you pay 6.000€ per year, you can deduct the maximum of 5.400€ via the flat-rate deduction.
Option 2: Deduction based on actual expenses
If your expenses significantly exceed the ceiling, you can opt for a deduction calculated according to your family situation and income. This option is more complex, but can be advantageous in some cases.
taxx.lu advantage
No need to choose between the flat-rate deduction and the deduction based on actual expenses with taxx.lu. Our system automatically compares both options and applies the one that is most beneficial for you, taking into account your family situation, your income, and your actual expenses.
Combining with other expenses
Good news: you can combine the flat-rate deduction with other types of expenses!
The 5.400€ flat-rate deduction covers:
- Childcare expenses
- Domestic help expenses (declared household help)
- Assistance and care expenses for dependent persons
Important: The flat-rate deduction can only be granted once, even if you combine several types of expenses.
How much will you really save?
Important reminder: a tax deduction does not mean you get back 100% of the deducted amount. The real saving depends on your tax rate.
Example calculation:
- Childcare expenses deducted: 5.400€
- Your marginal tax rate: 23%
- Actual tax saving = 5.400€ × 23% = 1.242€
The higher your income (and therefore your tax rate), the greater the tax saving.
How do you declare these expenses?
On taxx.lu
- Log in to your taxx.lu account
- Go to the "Allowances" section of your tax return
- Click on "Domestic help, care and/or childcare fees"
- Enter the amount of your annual expenses and attach a tax certificate indicating the fees paid during the tax year
- The flat-rate deduction will be calculated automatically
Documents to keep
Even if you choose the flat-rate deduction, make sure you keep:
- Certificates from the crèche / childcare centre / childminders
The tax administration may request these documents in case of an audit.
Special cases
Cross-border workers
Cross-border workers from EU countries can also benefit from this deduction, provided that:
- At least 90% of their worldwide income is taxable in Luxembourg
- The household does not earn more than 13.000€ net per year outside Luxembourg
- OR at least 50% of the household’s professional income is taxable in Luxembourg (for Belgian residents)
In this case, you are treated as a resident for tax purposes and benefit from the same deductions.
The Chèque-Service-Accueil (CSA): a useful extra
In addition to the tax advantages, there is the Chèque-Service-Accueil. This is a financial aid from the Luxembourg government which directly reduces your childcare costs.
Conditions for benefiting from it:
- Having children aged 0 to 12
- Registering them in structures approved as "CSA service providers"
- One of the parents must work in Luxembourg
The advantage: The CSA directly reduces your monthly childcare invoice. You only pay the difference.
Good to know: Cross-border workers from EU countries can also benefit from the CSA since 2016.
In summary: what to remember
- Up to 5.400€ in tax deductions for childcare expenses
- Approved structures only (crèches, Maisons Relais, childminders)
- Easy to declare in your tax return
- Can be combined with the Chèque-Service-Accueil
- Accessible to residents and cross-border workers who qualify
The real tax saving depends on your tax rate but can easily exceed 1.000€ per year.
Need help?
Do you have questions about your tax deductions? Our taxx.lu team is here to help you:
- By chat on taxx.lu
- By email at help@taxx.lu
- Check out our complete tax guide
taxx.lu advantage
With taxx.lu, you instantly see the impact of your deductions on your tax result. Our platform automatically calculates your savings in real time. Try it for free and optimise your tax return in just a few clicks!
