5. Deductions new arrivals often overlook

Many foreign residents do not make full use of the deductions available to them simply because they are not yet familiar with the rules. Among the most common are:

Pension plan contributions: deductible up to €3,200 for tax year 2025, and €4,500 per person from 2026.
Insurance premiums: including life insurance and third-party liability insurance, subject to a ceiling of €672 per member of the household.
Home savings, mortgage interest related to your home, and childcare expenses.
The allowance for a child who is not part of your household: for example, a child who remained in your country of origin, up to €5,424 per child for tax year 2025.

Please note: this child-related allowance is never granted automatically and must be claimed by you.

On the solutions side, Banque Raiffeisen offers home loan savings, life insurance and pension plan solutions that can help reduce your taxable base while preparing for your future.

Learn more about tax optimisation

Expat in Luxembourg: what you need to know about your tax return

File your return on taxx.lu