11. Income from pensions

Pension and annuity income constitutes an important category in the Luxembourg tax declaration. It concerns retirees from both the public and private sectors as well as recipients of disability, alimony, or lifetime annuities. This chapter explains how to declare these incomes and which allowances are applicable.

Which pensions are taxable?

The following are considered taxable pensions:

• Retirement pensions from the Luxembourg general scheme (CNAP)
• Supplementary pensions (public or private sector)
• Foreign pensions received by Luxembourg residents
• Disability or survivor annuities
• Social inclusion income (REVIS)
• Accident annuities that replace lost income

For foreign pensions, amounts must be converted into euros and accompanied by an official certificate indicating the gross amount.

Acquisition expenses (Frais d’obtention)

Acquisition expenses refer to costs incurred directly by the retiree or pensioner to acquire, secure, and maintain income from pensions or annuities.

• The minimum flat-rate allowance is 300€ per taxpayer. This amount is fully deductible, even if the retiree or pensioner did not pay any professional expenses or if the actual expenses are lower than 300€.
• If the taxpayer was not liable for the entire tax year (e.g., entering or leaving Luxembourg during the year, or death), the amount is reduced to 25€ per full month of tax liability.
• If professional expenses exceed the flat-rate deduction, the taxpayer may request a deduction for actual expenses. Details of these expenses must be specified on an annex. Supporting documents should be attached, e.g., costs of legal proceedings related to a dispute with a pension fund.