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3rd pillar (prévoyance-vieillesse)
A tax lever: saving for your retirement while reducing your income tax.
Tax deduction
Payments into a prévoyance-vieillesse contract are deductible, up to an annual ceiling raised to 4.500 € from 2026 (compared with 3.200 € in 2025). Minimum duration of 10 years, payout between 60 and 75 years of age.
Effect on your situation
Unlike the levers within the CNAP scheme, the 3rd pillar does not increase your statutory pension: it is supplementary savings that reduce your tax during the savings phase. To be combined with the other arrangements (régime complémentaire d'entreprise, AMVP).
The other deductible schemes
The 3rd pillar is not alone. The 2nd pillar — the employer supplementary pension scheme (art. 110 LIR) — is funded by the employer and tax-efficient. Insurance and provident premiums (art. 111 LIR) are deductible up to an annual limit (€672 per household member). Home-savings (Bausparen) also falls under art. 111 LIR (detailed below). All these schemes combine with each other and with the 3rd pillar.
Home-savings (Bausparen)
Home-savings combines locked savings with the right to a home loan at a rate fixed at signing. For tax (art. 111 LIR, not 111bis), contributions are deductible up to €1,344/year if you are aged 18 to 41, €672/year beyond — amounts doubled per spouse/partner and per child. Conditions: a contract with an approved home-savings institution (on the market: Wüstenrot, BHW, Schwäbisch Hall, distributed by Luxembourg banks), funds used for your housing, a lock-in of about 10 years (a non-compliant early withdrawal triggers a tax adjustment). What it yields: (modest, contract-fixed) credit interest, the tax saving on contributions, and above all guaranteed access to a loan at a rate known in advance — protection against rising rates.
Working longer: the “staying in working life” abatement
This is not a savings product but a tax advantage for those who keep working. If you already meet the conditions for an early pension (at 57 or 60) without having claimed your pension and you continue working, you receive an abatement on your taxable income — up to €9,000/year (art. 129g LIR, in force since 2026). You must request a certificate from the CNAP (via MyGuichet.lu) and forward it to the tax administration (ACD). The actual saving depends on your marginal rate. (“AMVP” is the abbreviation used on this site; it is not an official acronym.)
Legal bases: art. 111bis LIR (private pension, €4,500 cap from 2026); art. 111 LIR (insurance and home-savings); art. 110 LIR (employer supplementary scheme); art. 129g LIR (staying-in-working-life abatement, €9,000/year from 2026). Sources: impotsdirects.public.lu, guichet.public.lu.