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How to file your tax return after a divorce in Luxembourg
How do you file your tax return after a divorce in Luxembourg? Tax classes, transitional period, alimony, and more.
Going through a separation or divorce doesn't just affect your personal or family life. In Luxembourg, this change in circumstances also has direct consequences for your taxes: tax class, how you file, alimony payments… It's worth understanding these rules to avoid any unpleasant surprises.
1. Divorce: what happens to your taxation?
As soon as the divorce is finalised, joint taxation as a couple comes to an end.
-
Year of the divorce:
You typically file one last joint return for that year. -
From the following tax year onwards:
Each ex-spouse is taxed individually, with their own separate return.
This is a significant change: you're no longer taxed together on the couple's combined income, but each on your own earnings.
2. The transitional period: holding on to tax class 2
After a separation, there's a transitional period that allows you to keep tax class 2 (normally reserved for married couples under joint taxation) for a limited time.
Conditions for keeping class 2 for 3 years
You can benefit from tax class 2 for three tax years if:
- the separation is official, meaning either:
- confirmed by a court decision, or
- an authorisation for separate residence;
- you haven't already benefited from this provision in the previous five years.
Important
The 3-year period starts from the date of the judicial separation or the authorisation for separate residence—not the date of the final divorce decree.
Example:
Judicial separation on March 10, 2024: class 2 applies for tax years 2025, 2026, and 2027.
From 2028, each person is taxed in class 1 or 1A, depending on their family situation.
3. Which tax class after the transitional period?
Once the transitional period for class 2 ends (or if you don't qualify), you're taxed individually in one of the following classes:
-
Class 1:
taxpayer without dependent children. -
Class 1A:
taxpayer with one or more dependent children (or certain other specific situations).
Your tax class mainly depends on whether you have dependent children after the divorce.
4. Alimony: how is it taxed?
Divorce often involves maintenance payments or alimony. The tax treatment depends on who receives them.
4.1. Alimony between ex-spouses
Alimony paid to an ex-spouse is:
- taxable for the recipient,
- deductible for the person paying it, under Annuities & permanent charges, in the "Miscellaneous" section on taxx.lu,
- up to a maximum of €24,000 per year.
This means the recipient must declare it as income, while the payer can reduce their taxable income through this deduction.
4.2. Child maintenance
Maintenance payments for children are treated differently:
- they're not taxable for the child or the parent receiving them,
- they may qualify for a deduction for extraordinary expenses for the parent who pays them.
In other words, child maintenance isn't taxed, but can still provide a tax benefit to the paying parent.
5. Summary: your tax situation after a divorce
Here's an overview of the key principles:
| Situation | Main tax consequence |
|---|---|
| Divorce finalised | One last joint return in the year of divorce, then individual returns from the following year. |
| Transitional period available | Tax class 2 for 3 years if judicial separation or authorised separate residence, subject to certain conditions. |
| After the transitional period | Taxed in class 1 (no dependent children) or class 1A (with dependent children). |
Need help filing after a divorce?
A divorce changes a lot when it comes to taxes: tax class, how you file, alimony, dependent children…
To make sure nothing gets missed, use taxx.lu: calculations are done automatically, and with the Plus or Premium packages, a tax expert will review your file in detail.
