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Which French insurance policies are tax-deductible in Luxembourg?
Cross-border worker in Luxembourg? Find out which French insurance policies are deductible on your tax return and the key exceptions to watch out for.
You work in Luxembourg but still have insurance policies in France. Can you deduct them on your Luxembourg tax return?
Short answer: Yes. But there are a few important exceptions you should know about.
It's not about where the policy was taken out
Good news: Luxembourg doesn't care whether your insurance is French or Luxembourgish. What counts is the type of cover. Not the country on the contract.
So your French policies? Just as deductible as Luxembourg ones. As long as they qualify as special expenses.
Which French policies can you deduct?
These are the main French insurance types you can claim:
- Life insurance
- Death insurance
- Remaining balance insurance (tied to a mortgage)
- Car liability insurance
- Home liability insurance
- Health insurance (top-up or supplementary cover)
All of these can go on your return. Within the applicable deduction limits, of course.
taxx.lu advantage
On taxx.lu, declaring your insurance is easy. The platform walks you through the right sections and shows you exactly how it affects your tax bill.
The exceptions you need to know
French pension plans (PER): limited tax benefit
French pension plans don't get the same treatment as Luxembourg old-age pension plans under Article 111bis. They're classified as standard life insurance. The higher deduction ceiling for Luxembourg retirement products? Doesn't apply.
French PER ≠ Luxembourg pension plan
A French PER won't qualify for the Article 111bis deduction (up to €4,500 per year in 2026). It's treated as ordinary life insurance, with a much lower cap.
French housing savings plans (PEL): not deductible
Also worth knowing: the French PEL can't be deducted on your Luxembourg return. Only the Luxembourg equivalent qualifies.
Tax assimilation: you can't skip this step
Want to deduct your French insurance? First, you need access to special expense deductions. That means applying for tax assimilation to resident status (Article 157ter LIR). Without it, none of your insurance is deductible in Luxembourg.
Who qualifies?
You need to meet at least one of these conditions:
- At least 90% of your worldwide income is taxable in Luxembourg
- Your non-Luxembourg income is under €13,000 per year
- Special rule for Belgian residents: at least 50% of the household's professional income is taxable in Luxembourg (Article 24 §4a of the Belgian-Luxembourg tax treaty)
The 50-day tolerance
Days worked outside Luxembourg (remote work, business trips) still count as Luxembourg income for the 90% calculation. Up to 50 days per year.
How do you apply?
Simple. Every year, tick the relevant box on Form 100. You'll need to declare all your worldwide income, both Luxembourg and foreign.
It's not automatic
Tax assimilation is a voluntary step. You need to repeat it every year. Skip it, and you'll be taxed in Class 1 on your Luxembourg income only. No access to special expense deductions. No insurance write-offs.
taxx.lu advantage
On taxx.lu, this is handled for you. If you meet the conditions, the platform includes the assimilation request in your return automatically.
The bottom line
Know which French policies are deductible. Check your eligibility for tax assimilation. And you can:
- Get more out of your tax return without missing anything
- Maximise your deductions, fully within the rules
- Make smarter decisions about your insurance across both countries
File your return on taxx.lu
On taxx.lu, declaring your insurance takes a few clicks. The platform guides you through the process, calculates the impact automatically. And you don't even need LuxTrust.
