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Reduce your taxes

In Luxembourg, you can reduce your income tax bill through certain savings and life insurance products. BGL BNP Paribas offers a whole range of solutions to safeguard your future, while taking advantage of tax benefits. Take a look at our handy tips!

Who is eligible for tax allowances in Luxembourg?

Tax allowances are granted to Luxembourg residents and to “equivalent” non-residents.
Cross-border workers earning most of their income in Luxembourg can ask to be treated as residents for tax purposes. They can then pay taxes under the same tax regime.

OptiSave+: gradually build up savings and reduce your taxes

Are you looking to build up savings for a trip around the world, to buy a home or to achieve a long-term goal? OptiSave life insurance by Cardif Lux Vie(1) helps you safeguard your future.

OptiSave+ benefits

  • define how much you want to save and the frequency
  • change your payment plan at any time
  • invest your premiums in the vehicle of your choosing
  • choose your investment profile when you sign up

What kind of tax reduction do I get with OptiSave+?

Any premiums paid under the policy are tax-deductible up to €672 per tax household per year. 

OptiPension+: prepare for retirement and enjoy tax benefits

OptiPension+ is both a personalised savings scheme and pension insurance.

OptiPension+ benefits

  • decide on the amount of premiums and how often you pay them
  • choose your investment strategy
  • access your savings once you turn 60

How much will I save on tax?

You can deduct up to €3,200 per taxpayer per year, no matter your age.

Schwäbisch Hall: finance your home and reduce your tax bill

Are you looking to buy property or finance projects for your private home? The Schwäbisch Hall home buyers saving scheme helps you save for these projects, while offering tax benefits.

Other ways to reduce your taxes

Credit protection insurance

Have you taken out an insurance policy alongside your mortgage? Your premium payments are tax-deductible up to €672 per member of the tax household.

The benefits of credit protection insurance

  • choose your own payment schedule
  • choose the amount of capital to be insured
  • multiple guarantee options.


Discover Credit Protection Insurance

Debit interest

Bank charges on personal and consumer loans may be subject to tax deductions, up to a maximum of €672 per member of the household.

Mortgage interest

Interest on mortgage loans can also be tax-deductible. For your primary residence, the tax allowance may range between €1,000 and €2,000 per member of the household and per annum, according to the date of occupancy.

 

Occupancy period Deductible amount per person and per annum
1-5 years €2,000
6-10 years €1,500
10+ years €1,000

Tip

The deductible limits are higher if the insurance is paid as a single premium.

Did you know?

However, debit interest on a secondary residence is not generally deductible.
However, if you’re financing a rental property the entire debit interest is tax-deductible as the cost of generating rental income.

Frenquently asked questions

  • icone faq question Which product is best for me?

    The solution we recommend will depend on your personal situation. Our advisors are here to make you an offer tailored to your needs.

  • icone faq question Is there a minimum term for life insurance policies?

    As a general rule, in order to be able to deduct premiums from your taxes, the policy must be taken out for a minimum of 10 years.

  • icone faq question What’s the minimum amount I need to transfer with OptiSave+?

    Save at your own pace with monthly, quarterly, semi-annual or annual payments. The minimum amount is €50.

(1) This product, designed by Cardif Lux Vie, is distributed by its insurance agency BGL BNP Paribas.