Personal taxation · Luxembourg
Deductible insurance premiums in Luxembourg: shared cap
Not all insurance premiums are deductible as special expenses. You need to check the risk covered and the terms of the policy. Some eligible premiums share a ceiling with interest on personal loans; they do not each create a separate deduction.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
Classify the cover
The scheme covers in particular certain personal risks, subject to the statutory conditions. Conversely, property insurance, such as theft or fire cover, does not automatically qualify for this personal deduction.
A premium linked to a rented property or a professional activity may call for a different classification. The correct classification must be established before calculating a ceiling.
The common ceiling
The reference ceiling is EUR 672 per year, which can be increased for the persons accepted under the household rules. The relevant personal loan interest and the premiums sharing this ceiling must be considered together.
The number of policies or insurers does not multiply the limit. Certain schemes, such as an eligible single premium for mortgage protection insurance (assurance solde restant dû), may involve specific increases to be checked separately.
Fictitious example
A person pays eligible premiums and consumer credit interest. They must not apply two full ceilings if the expenses belong to the same allowance. The statement must also distinguish the eligible covers within a multi-risk policy.
The actual deduction may differ from the total on the certificate. It must be compared with what is already included in the withholding tax or in the declared base.
Documents and questions to ask
- Exact nature of the covers, policyholder, insured person and beneficiary.
- Annual certificate breaking down the premiums.
- Term and clauses where the scheme requires them.
- Other expenses using the same ceiling and the household units accepted.
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Official sources and scope
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.