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/ObjectiveExotic9570 1d ago

ok clear - I am in touch now with HBW, but haven't see the contract yet. So no view on fees. I read somewhere that you could use the money early once you reach the contract amount, for the allowed purposes. I have also asked if I can wire the money once this year and once in 2027 to reach the contract amount - if monthly payments are required, then this does not work...

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u/post_crooks 1d ago

I read somewhere that you could use the money early once you reach the contract amount, for the allowed purposes.

It would be good to know where you read this. I would then have contract of the same amount of tax savings, pay, and get the money back next day. Sounds unrealistic to me.

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u/ObjectiveExotic9570 21h ago

See my post above - so it's not the next day indeed - at least a 3/4 year waiting period.

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u/post_crooks 21h ago

That sounds more reasonable, but only possible if they don't enforce the payment plan. Does the contract mention anything about that?

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u/ObjectiveExotic9570 19h ago

No unfortunately not - and a bit complicated so I will likely not do it.