Layout Block - Banner benefits - jeune - job

Home Loan Savings Contract
English
Tax incentives Build up capital and use it to buy a home 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 investment.

Layout Block - Green Title H2

The benefits of a home loan savings contract

Layout Block - Text

English
  • A risk-free way to invest funds
  • Deduct deposits on your savings account from your taxable income under ‘special expenditure’.
  • Depending on your personal situation, you may make tax savings which, when added to the interest earned on your savings, will help you earn an even higher return.
  • You are free to do as you please and make payments into the account at any time.
  • Thanks to your home savings account, you will be entitled to a housing loan at a preferential, fixed rate.
  • You can pass on your assets and the loan to certain members of your family (e.g. children or brothers and sisters).

Layout Block - Green Title H2

Allocation of the agreed amount

Layout Block - Text

English

In the case of tax deductions, the agreement comes with a commitment period of 10 years, which defines the possibilities for allocating the saved amounts. Regardless of whether or not the 10-year period has elapsed, the housing loan must be used for property-related projects.

 

Layout Block - Green Title H2

Allocation of funds during the commitment period

Layout Block - Text

English

If the agreement is entered during the commitment period, the amounts in the saving account will be assigned to a property investment in Luxembourg 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 an apartment or house
  • The repayment of the loans taken out for the investments mentioned above

The house or apartment must be lived in by the saver and serve as a main or usual home. Holiday homes or second homes are not included in this context.

Layout Block - Green Title H2

Allocation of funds after the commitment period

Layout Block - Text

English

If you no longer wish to build or renovate at the end of the 10-year commitment period, you can use your savings as you wish. 

Note: If the capital on the home savings account is not used for your own housing requirements, you will no longer be entitled to tax deductions on any future home savings accounts. 

Layout Block - Green Title H2

Benefit from tax incentives

Layout Block - Text

English

To benefit from these tax incentives, your home savings must be used to:

  • convert or modernise a dwelling
  • buy a property

Layout Block - Green Title H2

Annual deductible amounts

Layout Block - Text

English

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

Layout Block - Text

English

Up to the age of 40 inclusive:

Situation Maximum amount deductible per annum
Single person without children 1344 EUR
Single person 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 child 1344 EUR per child
 

 

After the age of 40:

Situation Maximum amount deductible per annum
Single person without children 672 EUR
Single person 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 child 672 EUR per child

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

Layout Block - Text

English

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 policyholder and the marginal tax rate.

Layout Block - Text

English

Up to the age of 40 inclusive:

Situation Maximum amount deductible per annum
  22% 32% 39%
Single person without children +/- 315 EUR +/- 450 EUR +/- 560 EUR
Single person 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 amount deductible per annum
  22% 32% 39%
Single person without children +/- 165 EUR +/- 235 EUR +/- 290 EUR
Single person with 1 child +/- 300 EUR +/- 560 EUR +/- 580 EUR
Couple without children +/- 315 EUR +/- 460 EUR +/- 560 EUR
Couple with 1 child +/- 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

Layout Block - Text

English

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

Layout Block - Green Title H2

Reimbursement of tax incentives

Layout Block - Text

English

 

The tax incentives must be reimbursed if, before the expiry of the 10-year period:

  • The amount of savings released after allocation is not directly allocated to a property-related investment 
  • The contract is terminated and the savings are refunded

The tax incentives will not be reimbursed if:

  • The home savings account agreement was terminated due to the death or permanent disability of the saver
  • The home savings account agreement is terminated after expiry of the 10-year commitment period

Call to action Large

Would you prefer to buy a house or flat? You could opt for the Raiffeisen mortgage and benefit from a special ‘first-time-buyer’ rate.
English

Plusieurs options s’offrent à vous pour utiliser la totalité ou une partie seulement de vos points.

Find out more Vous préférez acheter une maison ou un appartement ?

Layout Block - Green Title H2

Conditions for benefiting from tax incentives

Layout Block - Text

English

The following are deemed to be deductible payments into the home savings account during the savings period:

  • The deposits provided for in the agreement
  • Any additional deposits
  • Administrative fees for the agreement
  • The interest paid on savings on 31 December each year

The tax incentives must be reimbursed if, before the end of the 10-year period:

  • The amount of savings released after allocation is not directly allocated to a property-related investment
  • The contract is terminated and the savings are refunded

The tax incentives will not be reimbursed if:

  • The home savings account agreement was terminated due to the death or permanent disability of the saver
  • The home savings account agreement is terminated after expiry of the 10-year commitment period

Layout Block - Infos - Question

Any questions?
English

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

Contact us