Deduct your home under construction from your tax return!
Is your home currently under construction or renovation and you are looking forward to moving in? The good news is that you are eligible to deduct the interest expense on a home loan for your building under construction. You can so save money while waiting to move in !
Some things to know before you start...
In Luxembourg, the tax return is not compulsory, but it is highly recommended. It can save you a lot of money:
- You can deduct insurance costs (civil liability) or interest on loans and credits from your return
- You can deduct a certain amount of the money you pay into your home savings plan or pension plan
How much can be deducted from the tax return in Luxembourg?
Interest liabilities are fully deductible in the following cases:
- if the building is under construction or renovation,
- if it is completed but not yet occupied by the owner.
Example: A couple takes out a mortgage to finance their house, which is still under construction, paying interest of €9,500. Here, the amount deductible in the Luxembourg tax return is equal to €9,500.
How to declare your home under construction?
To enter your construction loan on your tax return, simply complete the property section of Form 100.
Don't know how to fill in your tax return? To get the most out of your tax return, use taxx.lu ! Create your account in a few clicks and then tick the appropriate box in the "Real Estate in 2020" category of the "Tax Status" form. Then fill in the "Real Estate" form to deduct the interest on the property. All the necessary information can be found on the certificate issued by your bank.
With taxx.lu, deducting your building under construction from your tax return is child's play! You can also deduct your car loan of your declaration.
What are the property prices at the moment?
Written by
atHome
Posted on
02 March 2021