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.


BHW Housing savings scheme

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

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 2.000* for the 1st year of occupancy of the property and the 5 following years
  • Deduction of up to EUR 1.500* for the next 5 years
  • Deduction of up to EUR 1.000* 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

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.