Fiscal advantages
Whether you are married or not, have one or several children, tax payers in Luxembourg who are parents may receive a tax reduction provided they do NOT RECEIVE THE CHILD BONUS.
The reduction is equivalent to 922.50 euros per child per year and can be claimed by completing a declaration of income tax, a demand for regularisation of payroll tax or by adding the status to a taxpayers' tax card. Single parents paying tax are entitled to a 750 euro tax credit each year.
A taxpayer who pays for the education and upkeep of their child (for example through alimony) and who does not live with that child, may benefit from a taxable income to a maximum of 3,480 euros per child, per year.