How to reduce your tax bill

To take advantage of the tax breaks to which you are entitled under Luxembourg law, don't forget – before the end of the year – to utilise or adjust the tax-deductible amounts, especially through Banque de Luxembourg's retirement savings plan.

The tax-deductible amount has increased to 3,200 euros per annum

Careful pension planning has become all the more vital. At Banque de Luxembourg, we encourage you to take action now to maintain your standard of living so you can enjoy your retirement with peace of mind.

Our retirement savings plan is an effective way of achieving your objectives.

Under the tax reform, the tax-deductible amount has been significantly increased: you can now invest 3,200 euros per annum, irrespective of your age.

By increasing the amount you pay into your retirement savings plan to this new maximum amount, you could benefit from a bigger tax deduction.

Three options when your plan matures

As a result of the tax reform, you can now opt for redemption on maturity in the following ways:

  1. as capital
  2. as an annuity
  3. or you can combine these two options

The tax position when the plan matures remains the same:

  • The part paid as capital will be taxed at half your overall tax rate;
  • 50% of the part paid in the form of an annuity will be exempt and the remainder will be subject to tax at your overall tax rate.

Other possible tax deductions

In addition to the tax-deductible amount of 3,200 euros on the Banque de Luxembourg retirement savings plan, other tax deductions are also possible via the following solutions:

  • Home savings
  • Mortgage to finance the main home...


Want to know more? Contact an adviser