Special expenses

Last updated on 18 January 2022

What is an outstanding balance insurance?

An outstanding balance insurance serves as security for the payback of a real estate loan of a property for personal use.
So, in order to provide for the case of death or invalidity and to not leave any liabilities to the surviving family members, it is possible to take out an outstanding balance insurance and to deduct the insurance in the tax return in Luxembourg.

However, a distinction must be made between two cases:


Annual payment of the outstanding balance insurance:

In the case of an annual payment, the deductible amount for the outstanding balance insurance is included in the normal deductible amount of 672€ per person, which applies in total to all deductible insurances and debt interest.

Single premium payment of the outstanding balance insurance:

The single payment increases the maximum deductible amount of the special expenses.

In this case, the deductible amount is limited to the value of the single payment, but without exceeding 6,000€. In addition, the maximum amount increases by 1,200€ for each child in the household, and 8% is added for each year of life over 30.

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Special expenses

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