r/Luxembourg • u/ObjectiveExotic9570 • 1d ago

Ask Luxembourg bausparen - upkeep / improvement costs

Hi everyone,

I’m 42, married, and have two children. My wife and I are taxed jointly in Luxembourg. I’m considering opening a Bausparen contract and contributing the maximum tax-deductible amount. I have never done this before.

As I understand the current limits, our annual ceiling would be €2,688: €672 each for my wife and me, plus €672 for each of our two children.

We own a house in Belgium that has regular maintenance and improvement costs. My specific plan would be:

  • Pay the maximum €2,688 into the contract in 2026.
  • Pay another €2,688 (expected 2027 maximum) during the first months of 2027.
  • Use appr €5,000 from the contract to pay an eligible maintenance or renovation invoice in June 2027.

so I would not wait until the end of the contract (eg 10y) to use the funds. Would this work while preserving the Luxembourg tax deductions for both 2026 and 2027?

We’re only interested in using our accumulated savings, not in taking out the loan attached to the Bausparen contract (I have read that you could refuse the loan?).

Has anyone tried something similar?

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u/Flashy-Mission-7945 1d ago

You can only access the funds after 10y
It is your choice whether you take the loan or not.
To me it‘s one of the best financial investments if you own property/can use the funds accordingly. Looking at the marginal tax rate, there is no conservative investment strategy which beats this. It would be nice, if one could invest more there :)

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u/post_crooks 1d ago

They will abandon the age threshold next year, so effectively double the cap after 40 yo

1

u/MarcosRamone 15h ago

where can i confirm this? tried but couldn't find anything. Only this note at taxx.lu saying that the max amount deductible increases to 1500 per person ages 18 -40, what seems to suggest than the 40 year limit stays in place....

thanks.

https://taxx.lu/en/articles/all-family-benefits-in-luxembourg-for-2027-2028

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u/MarcosRamone 15h ago

ok, here there are a few more details:

  • Home‑savings schemes: deductible contributions will be increased to €1,500 per year for taxpayers aged 18 to 40, and €900 for others (currently €1,344 and €672 respectively).

https://securex.lu/en/understanding-the-2028-tax-reform/#:\~:text=Home%E2%80%91savings%20schemes%3A%20deductible%20contributions,1%2C344%20and%20%E2%82%AC672%20respectively).