The main expenses which are deductible from income

Taxpayers can deduct certain expenses from their taxable income. These expenses fall into two broad categories: special expenses and extraordinary expenses.

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Taxation of income from real estate rented on an internet platform

The income generated from real estate rented by an individual on an Airbnb-type platform may, depending on the duration of the rental, fall under either the taxation of private income or the taxation of professional income. Occasional rental of accommodation on a platform such as Airbnb does ...

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Non-resident married couples: Place your bets!

The tax reform provides that non-resident married couples, in other words, frontier married couples with taxable income in Luxembourg, will automatically be treated as Class 1. However, Frontier married couples have the possibility to apply for tax treatment of resident taxpayers subject to certain conditions.

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Tax reform and married couples: introduction of optional individual taxation

The Luxembourg tax reform, which came into force on 1 January 2017, allows married couples, for the 2018 fiscal year, to choose between individual or collective taxation.

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The deductibility of extraordinary expenses

In order to maintain a certain balance between all taxpayers, for whom the tax must remain within the limits of their contributive capacity, the Luxembourg legislator has an original approach to take into account part of the "extraordinary" expenses which may arise for a taxpayer ...

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Taxation of property capital gains

To find out about capital gains in the event of the transfer of the principal residence, of an immovable sold less than 2 years or more than 2 years after the acquisition or transfer of property acquired by way of succession.

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Dependent children and tax benefits

Luxembourg reviews the amount of family allowances and introduces a single amount for all children born after 1 August 2016.

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Who must file an income tax return in Luxembourg?

The obligation to file a tax return depends on the category of income, the amount of income and the tax situation of the taxpayer.

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Collective taxation of partners

Article 2 of the Act of 9 July 2004 defines a partnership as "a living community of two people of different or the same sex who live as a couple and who have made a declaration to this effect". This declaration is made in writing before a civil registrar and is then entered in a file ...

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Interest savings and subsidies granted by the employer

In addition to the interest subsidies and interest rebates granted by the Luxembourg state as part of its housing policy, the Income Tax Act also allows tax deductions for the employer and the employee which can be granted in the form of interest savings and subsidies. The term "interest ...

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Tax deductibility of training and further training costs

Are training and further training costs tax-deductible expenses? Are all costs tax deductible? Which costs are then tax-deductible and which costs are not eligible? Sections 103 and 105 of the LIR state respectively that "the net income of each of the classes of income referred to in ...

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How to prepare the Luxembourg tax return: questions / answers

In Luxembourg, filing a personal tax return is mandatory in certain cases only. In order to understand if you have to file a return, our personal tax experts can answer your questions. if you have to file a return, Fiduciaire lpg has a service for the prepartion and filing of personal tax ...

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