The period when you are preparing your tax return is a good time to review your tax situation. Have you thought about optimising it? The pension savings plan, Prévoyance 3, offered by Banque de Luxembourg, is a simple pension solution, at the same time enabling you to benefit from a reduction in your taxable base as of now.

Tax deduction up to EUR 3,200 per annum

Through the Prévoyance 3 pension savings plan, you can lessen your tax bill at the same time as preparing for your own and your family’s future. You can deduct up to 3,200 euros per annum from your taxable base.
By increasing the amount you pay into your retirement savings plan to this new maximum amount, you could benefit from a bigger tax deduction.
 

Three options when your plan matures

The plan matures after you reach the age of 60, provided the contract has been running for 10 years. At maturity – depending on your choice – you get back your capital and a profit in the form of:

1. Capital
2. An annuity
3. A combination of these two options

The tax position when the plan matures is as follows:

• The part paid as capital will be taxed at half your overall tax rate
• 50% of the part paid in the form of an annuity will be exempt and the remainder will be subject to tax at your overall tax rate.

Other possible tax deductions

In addition to the tax-deductible amount of 3,200 euros on Banque de Luxembourg’s Prévoyance pension savings plan, other tax deductions are also possible via the following solutions:

• A home-ownership savings plan
• A mortgage to finance the main home...

Want to know more?

Contact an adviser