Household help and taxes in Luxembourg: How to deduct up to €5,400

Deduct your household help expenses in Luxembourg: up to €5,400 per year. Conditions, common mistakes to avoid and how to file on taxx.lu.

Hiring household help makes life easier. But did you know it can also lower your taxes? Thanks to the lump-sum allowance for domestic expenses, certain cleaning and home maintenance costs can be deducted on your Luxembourg tax return.

Here's everything you need to know to take full advantage.

What is the domestic expenses allowance?

Luxembourg tax law provides a lump-sum allowance of up to €5,400 per year for certain domestic expenses, including household cleaning services.

In practice, this allowance directly reduces your taxable income. Less taxable income means less tax to pay.

Which household help expenses are deductible?

The following expenses qualify for the allowance:

• A registered domestic employee
• A professional cleaning company
• Regular or occasional home cleaning services
• Routine interior maintenance of your private residence

The expenses must relate to your private household and be paid in a legal and traceable way (invoices + bank transfers).

Which expenses are NOT deductible?

Watch out, this is a common mistake: gardening expenses are not deductible, even when invoiced by a professional company.

If your service provider invoices cleaning and gardening together, make sure the amounts are clearly separated. Declaring a combined total is a classic mistake that can lead to a tax adjustment.

How to declare your household help expenses

To benefit from the lump-sum allowance:

1. Enter the total amount under the domestic expenses section.
2. The allowance is capped at €5,400 per year.
3. Keep your invoices and proof of payment: you don't need to attach them to your return, but the tax authorities can request them at any time.

Best practices to avoid a tax adjustment

A few simple habits to stay on the safe side:

• Check that your service provider is officially registered with the Luxembourg authorities.
• Prefer bank transfers to keep a clear paper trail.
• Ask for detailed invoices, especially if multiple services are billed together (cleaning + gardening, for example).
• When in doubt, stick to expenses that clearly qualify.

In a nutshell

Thanks to the lump-sum allowance for domestic expenses, your household help costs can reduce your taxable income by up to €5,400. Cleaning and indoor maintenance expenses are deductible, provided the legal conditions are met. Gardening expenses, however, are always excluded.

A correct, well-documented return lets you make the most of this tax benefit with no nasty surprises.