Not all insurance is deductible, but several policies can reduce your taxable income if they meet the conditions.
The main insurance types with tax potential
- Outstanding balance insurance linked to a home loan: the premium is deductible, with a ceiling increased according to age and household composition.
- Old-age provision (art. 111 bis): a retirement savings contract deductible up to an annual ceiling.
- Insurance premiums classed as “special expenses”: life/death, accident, supplementary health, private personal liability… deductible up to a shared ceiling.
“Special expenses” insurance premiums share a single annual ceiling per household member. Once that ceiling is reached, an additional premium no longer provides any deduction that year.
What is generally not deductible
Insurance on everyday private property (for example standard car or home insurance) is not deductible in a private capacity. The exact framework depends on your situation.
Each ceiling is a deduction limit, not a promise of tax savings. We sort out with you what is deductible and what is already “fully used”.
General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.