Sponsored ContentHow can you optimise your taxes?

Most Luxembourg citizens and cross-border commuters have to file a tax return in Luxembourg every year.

Although Luxembourg has a reputation for being less complicated than its neighbours, some questions still come up regularly.

Married couples and partnerships - joint or individual taxation?

Married or civil union couples can opt for one of the following tax systems:

• to be taxed jointly in tax class 2,
• to be taxed strictly on an individual basis, i.e., each partner's income is taxed individually in tax class 1,
• to be taxed individually with redistribution of income.

The decision in favour of joint or individual taxation must be requested on the basis of a joint application form signed by both partners.

The form can be submitted online via guichet.lu or by sending a form to the tax administration.

What types of deductions can I claim?

There are a certain number of tax-deductible expenses that can be claimed. Examples of these are:

• Necessary expenses (expenses related to carrying out a salaried activity)
• Pensions paid to a divorced spouse, maintenance payments and other standing payments
• Compulsory social-security contributions and deductions
• Insurance contributions and premiums
• Premiums paid into a pension policy
• Premiums paid into a homebuyer savings plan
• Contributions to a supplementary pension scheme, donations or gifts, etc.
• Costs of domestic services and child care

When do I have to submit my tax return at the latest?

The completed tax return must be submitted by 31 December of the current year. This deadline applies both to persons who are required to file a tax return and to those who do so voluntarily. The LCGB recommends that you file your tax return as soon as possible so that you receive your refund promptly.

The LCGB will inform you about the best option for your personal situation as well as about the various allowances and offers its members (> 6 months membership) free help in completing their tax return.

Further information on this service is available here.