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Home loan savings contract

With Raiffeisen and its partner Wüstenrot, you can open a home loan savings contract and benefit from the tax incentives that come with this kind of saving.
Your benefits
Tax incentives
Build up capital and use it to buy a home

The benefits of a home loan savings contract

  • A risk-free way to invest funds
  • Deduct the deposits made on your savings account from your taxable income under ‘special expenditure’ according to your deductible amounts.
  • Thanks to your home savings account, you will be entitled to a housing loan at a preferential, fixed rate.

Amounts paid in are tax deductible

Annual payments into the home savings account are deductible from taxable income at the following rates :

Up to the age of 40 inclusive:

Situation Maximum deductible amount per year
Single, without children 1344 EUR
Single, with 1 child 2688 EUR
Couple, without children 2688 EUR
Couple, with 1 child 4032 EUR
Couple, with 2 Children 5376 EUR
Couple, with 3 Children 6720 EUR
Additional children 1344 EUR per additional child

 

After the age of 40:

Situation Maximum deductible amount per year
Single, without children 672 EUR
Single, with 1 child 1344 EUR
Couple, without children 1344 EUR
Couple, with 1 child 2016 EUR
Couple, with 2 Children 2688 EUR
Couple, with 3 Children 3360 EUR
Additional children 672 EUR per additional child

N.B. the upper limits apply to the total of all deductible insurance bonuses. Age is the age of the adult contract holder on 1st January of the year in question.

Tax impact

The table below gives an indication of the maximum annual total tax impact according to the situation and age of the youngest adult contract holder and the marginal tax rate.

Up to the age of 40 inclusive:

Situation Maximum deductible amount per year
  22% 32% 39%
Single, without children +/- 315 EUR +/- 450 EUR +/- 560 EUR
Single, with 1 child +/- 550 EUR +/- 1.120 EUR +/- 1.125 EUR
Couple, without children +/- 635 EUR +/- 900 EUR +/- 1.125 EUR
Couple, with 1 child +/- 935 EUR +/- 1.335 EUR +/- 1.690 EUR
Couple, with 2 children +/- 1.225 EUR +/- 1.700 EUR +/- 2.240 EUR
Couple, with 3 children +/- 1.510 EUR +/- 2.180 EUR +/- 2.790 EUR

 

After the age of 40:

Situation Maximum deductible amount per year
  22% 32% 39%
Single, without children +/- 165 EUR +/- 235 EUR +/- 290 EUR
Single, with 1 child +/- 300 EUR +/- 560 EUR +/- 580 EUR
Couple, with 1 child +/- 315 EUR +/- 460 EUR +/- 560 EUR
Couple avec 1 enfant +/- 480 EUR +/- 695 EUR +/- 850 EUR
Couple, with 2 Children +/- 635 EUR +/- 900 EUR +/- 1.125 EUR
Couple, with 3 Children +/- 795 EUR +/- 1.125 EUR +/- 1.415 EUR

Examples on the basis of the INCOME TAX BRACKETS applicable as from the 2017 tax year:
 

Marginal tax rate 22%

  • Single person with annual income of +/- 30,000 EUR
  • Married couple with annual income of +/- 60,000 EUR
     

Marginal tax rate 32%

  • Single person with annual income of +/- 39,000 EUR
  • Married couple with annual income of +/- 78,000 EUR
     

Marginal tax rate 39%

  • Single person with annual income of +/- 48,000 EUR
  • Married couple with annual income of +/- 96,000 EUR

Allocation of savings deducted for tax purposes

At the end of the contract, the savings must be allocated to a real estate investment on the national territory or abroad as defined below:

  • The construction or purchase of an apartment or house
  • The conversion or renovation of an apartment or house
  • The purchase of a building plot for construction of a property
  • The repayment of the loans taken out for the investments mentioned above

The house or apartment must be inhabited by the saver and must be their main place of residence. Holiday homes, second homes and rental properties are not permitted in this context.

 

If you no longer wish to build or renovate, you can freely dispose of your housing savings capital, but future tax deductions on future housing savings contracts will no longer be possible. If you also wish to dispose of your savings before 10 years have passed, a tax recalculation will be added.

Home savings account

To set aside savings for your home or benefit from personalised advice on how to prepare the financing of your future property investment

Where to find us

Raiffeisen has branches all over Luxembourg so you will be able to find a branch or ATM wherever you are.

Any questions?

We are here to answer your questions and can put you in contact with the right people depending on your requirements.