Tax benefits related to my primary residence

The tax aspects of your real estate project

Have you purchased your dream home? So be aware that this acquisition offers tax benefits. The Luxembourg state has set up a series of tax incentives to make it easier to buy a home.

Housing savings scheme
Debit interest
Residual debt insurance
Luxembourgish version

Housing savings scheme BHW

A savings account to finance the construction, purchase or renovation of your home:

  • Deduct premiums paid up to EUR 1.344* per year from your taxable income - up to age 40
  • Deduct premiums paid up to EUR 672* per year from your taxable income - if you are over 40
* per person in your household
Discover the benefits of a BHW in terms of housing assistance

Debit interest

Interest related to a real estate loan taken out for the construction, purchase or renovation of a property considered as an obtainment cost:

  • Deductible from income tax
  • Full deduction as an obtainment cost before you occupy the property
  • Deduction of up to EUR 4.000* for the 1st year of occupancy of the property and the 5 following years
  • Deduction of up to EUR 3.000* for the next 5 years
  • Deduction of up to EUR 2.000* from the 11th year of residence

* per person in your household

Residual debt insurance

Outstanding balance insurance covers redemption of your loan in the event of death or incapacity, and therefore protects your family.

  • The deductible amount of the one-off premium varies depending on your age and the composition of your household (see table).
  • Annual premiums are tax-deductible for up to EUR 672 per person in your household.
  • A combination of a one-off payment and annual premium payments often proves attractive in terms of taxation.
 
no children
1 child
2 children
3 children
per additional child
Up to age 30
EUR 6.000
EUR 7.200
EUR 8.400
EUR 9.600
+ EUR 1.200
Age 31
EUR 6.480
EUR 7.776
EUR 9.072
EUR 10.368
+ EUR 1.296
Age 32
EUR 6.960
EUR 8.352
EUR 9.744
EUR 11.136
+ EUR 1.392
Age 33
EUR 7.440
EUR 8.928
EUR 10.416
EUR 11.904
+ EUR 1.488
Age 34
EUR 7.920
EUR 9.504
EUR 11.088
EUR 12.672
+ EUR 1.584
Age 35
EUR 8.400
EUR 10.080
EUR 11.760
EUR 13.440
+ EUR 1.680
Age 36
EUR 8.880
EUR 10.656
EUR 12.432
EUR 14.208
+ EUR 1.776
Age 37
EUR 9.360
EUR 11.232
EUR 13.104
EUR 14.976
+ EUR 1.872
Age 38
EUR 9.840
EUR 11.808
EUR 13.776
EUR 15.744
+ EUR 1.968
Age 39
EUR 10.320
EUR 12.384
EUR 14.448
EUR 16.512
+ EUR 2.064
Age 40
EUR 10.800
EUR 12.960
EUR 15.120
EUR 17.280
+ EUR 2.160
Age 41
EUR 11.280
EUR 13.536
EUR 15.792
EUR 18.048
+ EUR 2.256
Age 42
EUR 11.760
EUR 14.112
EUR 16.464
EUR 18.816
+ EUR 2.352
Age 43
EUR 12.240
EUR 14.688
EUR 17.136
EUR 19.584
+ EUR 2.448
Age 44
EUR 12.720
EUR 15.264
EUR 17.808
EUR 20.352
+ EUR 2.544
Age 45
EUR 13.200
EUR 15.840
EUR 18.480
EUR 21.120
+ EUR 2.640
Age 46
EUR 13.680
EUR 16.416
EUR 19.152
EUR 21.888
+ EUR 2.736
Age 47
EUR 14.160
EUR 16.992
EUR 19.824
EUR 22.656
+ EUR 2.832
Age 48
EUR 14.640
EUR 17.568
EUR 20.496
EUR 23.424
+ EUR 2.928
Age 49
EUR 15.120
EUR 18.144
EUR 21.168
EUR 24.192
+ EUR 3.024
Over 50
EUR 15.600
EUR 18.720
EUR 21.840
EUR 24.960
+ EUR 3.120
More information on the residual debt insurance

Key-takeaways!

Think about the tax deductions and benefits available for your real estate project. 

Consult your Spuerkeess Housing Advisor about the tax optimisation of your real estate project.

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