Beyond protection, outstanding balance insurance linked to a home loan can have a tax benefit.
A deductible premium
The premium can be deducted as a special expense. For a single premium (paid once at inception), the deduction ceiling is increased according to the age of the insured and household composition.
The increased ceiling remains a deduction limit, not a promise of tax savings. The actual saving depends on your taxable income and your situation. The precise amounts depend on the tax year.
Single premium and cross-border workers
Cross-border workers with resident-equivalent status can, subject to conditions, benefit from the same mechanism. This is often a decisive factor in whether a tax return is worthwhile.
Balancing protection and taxation
The choice between a single premium and a recurring premium has both a budget and a tax impact. We model both options with you before any decision.
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.