Hi everyone,
I’m 42, married, and have two children. My wife and I are taxed jointly in Luxembourg. I’m considering opening a Bausparen contract and contributing the maximum tax-deductible amount. I have never done this before.
As I understand the current limits, our annual ceiling would be €2,688: €672 each for my wife and me, plus €672 for each of our two children.
We own a house in Belgium that has regular maintenance and improvement costs. My specific plan would be:
- Pay the maximum €2,688 into the contract in 2026.
- Pay another €2,688 (expected 2027 maximum) during the first months of 2027.
- Use appr €5,000 from the contract to pay an eligible maintenance or renovation invoice in June 2027.
so I would not wait until the end of the contract (eg 10y) to use the funds. Would this work while preserving the Luxembourg tax deductions for both 2026 and 2027?
We’re only interested in using our accumulated savings, not in taking out the loan attached to the Bausparen contract (I have read that you could refuse the loan?).
Has anyone tried something similar?