Articles 111, 111bis and 157ter: which tax deduction for which insurance?

Three articles, three logics

Article L.I.R.	What it covers	2026 ceiling	Who
111	Insurance premiums: liability, complementary health, outstanding-balance, life and death cover	€672 a year per household member	Residents and assimilated cross-border workers
111bis	Pension savings contract	€4,500 a year per taxpayer	Residents and assimilated cross-border workers
110	Supplementary pension scheme for the self-employed	Up to 20% of net self-employment income	Self-employed
157ter	Assimilation of non-residents to residents	Unlocks the ceilings above	Cross-border workers

Article 111: €672 per household member

This is the broadest and most often forgotten deduction. Insurance premiums paid during the year, liability, complementary health (mutual contributions included), outstanding-balance insurance, life and death cover, are deductible as special expenses up to €672 a year per member of the tax household. A family of four thus deducts up to €2,688 a year. The ceiling fills up quickly: a top-up health plan and private liability cover are often enough.

Article 111bis: €4,500 for pension savings

Since 1 January 2026, the deductible ceiling for pension savings contracts has risen from €3,200 to €4,500 a year per taxpayer, a 40% increase. In a jointly taxed couple, each spouse can take out their own contract and deduct their own ceiling. The conditions are unchanged: a contract of at least 10 years, taken out before 65, payout between 60 and 75, no early surrender except serious illness or disability. At maturity, capital is taxed at half the overall rate and a life annuity is 50% exempt. The four main contracts on the market (LALUX easyLIFE Pension from €25 a month, AXA MySmartPension, Baloise Pension Plan, Foyer horizon) offer the same tax advantage; the difference lies in the financial engine, fees and flexibility, detailed in our 111bis ceiling guide for 2026 and our life insurance comparison.

Article 110: the self-employed scheme

The self-employed also have their own supplementary pension scheme: contributions to a contract such as MyPension Pro are deductible up to 20% of net self-employment income, on top of the 111bis. If you have just gone freelance, also read our article on professional liability, whose premium counts as an operating expense.

Article 157ter: assimilated cross-border workers

These deductions are not reserved for residents. A non-resident treated as a resident for tax purposes, in principle when at least 90% of their total taxable income is taxable in Luxembourg, and for Belgian residents when more than 50% of the household’s professional income is, enjoys the same ceilings: €672 per person under article 111 and €4,500 under 111bis. Our article on cross-border workers’ insurance puts this point in the context of your whole situation.

In practice

• Premiums paid during the year are deductible for that year, including for a contract taken out mid-year or after arriving in Luxembourg.
• Articles 111 and 111bis add up: they are two separate ceilings.
• Keep the insurers’ annual certificates: they substantiate the amounts on your tax return.
• Just arrived? Our first 30 days checklist puts tax at the right moment of your move.