74 days until 31 December 2024. Final deadline for your 2023 tax return! Fill it in here.
Different kinds of taxation

Last updated on 14 February 2024

What are the tax implications of a partnership (PACS)?

The fiscal impact of a life partnership (PACS) varies for tax purposes. Initially, partnered couples retain 'single' tax status (tax class 1 or 1a) on their monthly salaries, not transitioning to the more advantageous 'married' tax class 2.
As a result, there's no immediate change in monthly salary taxes upon entering a life partnership. However, by jointly filing taxes, partnered couples can access benefits similar to tax class 2, similar to a married couple.

Benefits of joint tax filing for PACS partners include:

  • Qualification for tax class 2, reducing the overall tax rate on their combined income.
  • Doubling the maximum deductible amount for specific expenses (e.g., insurances, personal loan interest).
  • Potential eligibility for a professional tax allowance termed 'abatement extra-professional' for both partners engaged in professional activities.


How to determine the most advantageous taxation for a civil partnership (PACS)?

How can I be taxed collectively in a case of a partnership (PACS) ?

Share

Different kinds of taxation

Other questions & answers in this category

Try taxx.lu now!

Sign-up for free

Create an account, complete your return and simulate your tax refund!