Mortgage Loan
Benefit from Tax Deductibility!
Deduct your interest on your tax return!
Deductible amount capped based on move-in date and household composition.
Starting from tax year 2023:
First 5 years: €3,000
Between 6 and 10 years: €2,250
After 10 years: €1,500
Until tax year 2022 included:
First 5 years: €2,000
Between 6 and 10 years: €1,500
After 10 years: €1,000
Looking to buy a house, an apartment, or build your own?
Benefit from a loan simulation!
The amount of the loan you can obtain will be influenced by factors such as your ability to make monthly payments, the value of the property you intend to finance, which will serve as collateral, and your down payment.
Variable or Fixed Interest Rates?
How to decide?
The fixed interest rate remains stable throughout the loan term, providing the security of consistent monthly payments. However, it may incur penalties for early repayments, and fixed rates are often higher. In contrast, the variable interest rate adjusts based on the financial market, which can result in variations in monthly payments. It offers the flexibility of early repayments at no additional cost, but carries the risk of unforeseen increases and provides less visibility into your future payments.
Some Examples of Deductions for the Tax Year 2023
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Have you achieved your dream of becoming the owner of your primary residence? Congratulations! Now, are you pondering over how this affects your tax return in Luxembourg?
If you have financed your property purchase with a loan, you are eligible to deduct the interest charges on your tax return. To avail this, furnish the tax authorities with a certificate from your bank showing the interest paid during the year.
The deductible amount varies based on two criteria:
- Year you moved in
- Composition of your household
The maximum deduction limit per person is outlined as follows:
Starting from tax year 2023:
First 5 years: €3,000
Between 6 and 10 years: €2,250
After 10 years: €1,500
Until tax year 2022 included:
First 5 years: €2,000
Between 6 and 10 years: €1,500
After 10 years: €1,000
These limits are increased for the spouse, partner, and each child in the tax household.
Example 1 (Tax year 2023):
Patrick, who is married with 2 children and moved in in 2021, has a limit of €3,000 per person, amounting to €12,000 in total. He paid €9,500 in interest in 2021, hence everything is deductible!
Example 2 (Tax year 2023):
Mia, in a civil partnership with 1 child, and having moved in in 2009, has a limit of €1,500 per person, totalling to €3,000. She paid €3,500 in interest in 2021. Mia will be able to deduct €3,000.
Ease your tax return process with taxx.lu! The system does the calculations for you!