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How private health insurance can reduce your taxes in Luxembourg
Private health insurance in Luxembourg: your contributions are tax-deductible. Ceiling, conditions and how to declare them. Here's everything you need to know.
In Luxembourg, taking out private health insurance isn't just about better coverage for medical expenses. It's also an excellent way to reduce your taxes. And most taxpayers don't even know about it.
Private health insurance contributions are tax-deductible
Good news: contributions to private health insurance are tax-deductible. The tax authorities classify them as special expenses (Article 111 LIR).
In practice, your contributions lower your taxable income. Which means a direct reduction in the tax you owe.
There's an annual ceiling
The deduction is subject to a global ceiling of €672 per year per person. This ceiling applies to each member of your tax household (spouse, partner, dependent children).
Example for a couple
A married couple can deduct up to €1,344 per year (€672 × 2). Even more if children are part of the tax household.
Private health insurance shares the ceiling with other policies
Private health insurance doesn't work in isolation. It falls under a shared ceiling with other deductible insurance policies:
- Life insurance
- Death insurance
- Remaining balance insurance
- Car and home liability insurance
All of these contributions are added together to reach (or not) the €672 per person tax ceiling.
Shared ceiling
If your other insurance policies (life, death, car liability, etc.) already hit the €672 ceiling, private health insurance won't give you any extra tax benefit. Check your remaining margin first.
Why is this worth it?
The ceiling may seem modest. But private health insurance lets you:
- Make the most of an existing tax ceiling that many taxpayers don't fully use
- Get double value from a useful expense: better health cover and lower taxes
- Legally reduce your tax bill, with zero complexity
Already paying for insurance? Adding private health insurance could help you squeeze every last euro out of your tax deductions.
How to declare your private health insurance
When filing your tax return, private health insurance contributions go under special expenses. Make sure to:
- Keep the annual certificates provided by your insurer
- Check that your total insurance doesn't exceed the allowed ceiling
taxx.lu advantage
On taxx.lu, declaring your insurance contributions takes a few clicks. The platform automatically calculates whether you've hit the ceiling and optimises your return.
Want to go further?
Taking out private health insurance means protecting your health while optimising your taxes. Don't have private health insurance yet and want to learn more?
Book a free call with our team to discuss your tax optimisation potential.
