Identifying and reporting maintenance payments from a former spouse
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Maintenance payments received by a resident taxpayer from a former spouse are, in principle, taxable in Luxembourg.
Maintenance payments ordered by a court of law after 31 December 1997, as well as those agreed upon by the parties in a divorce by mutual consent, are taxable for the recipient.
Maintenance payments ordered by a court of law before 1 January 1998 are taxable for the recipient, provided that they are deductible as special expenses for the payer (for further information, see the page entitled, 'Deducting allowance payments to a divorced spouse or other ongoing allowance payments'. These payments may only be considered as deductible for the payer if both parties file a joint request to that effect. If no such request is filed, maintenance payments ordered by a court of law before 1 January 1998 are not deductible by the payer as special expenditure, and hence are not taxable for the recipient.
The taxable maintenance amount for the recipient is the amount that the payer is entitled to deduct as special expenses (the maximum deductible amount is EUR 24,000 per year and per former spouse).
Maintenance payments received by a non-resident former spouse are, in principle, taxable in the latter’s country of residence. However, if a non-resident former spouse opts to be treated as a Luxembourg resident for tax purposes, they must report any maintenance payments received on the Luxembourg tax return (which will have an impact on the average tax rate applied to taxable income in Luxembourg).
These provisions do not apply to maintenance paid to children, which is not taxable for the recipient. For the payer, these expenses confer the right to tax relief as extraordinary charges.
Who is concerned
The information provided on this page applies to:
- resident taxpayers who receive maintenance payments from a former spouse;
- non-resident taxpayers who opt to be treated as Luxembourg residents for tax purposes and who receive maintenance payments from a former spouse.
How to proceed
How to report maintenance payments received from a former spouse as a resident taxpayer
Resident taxpayers must report the amount of maintenance they received from their former spouse in the 'form 100' income tax return, in the section entitled, 'Net income from pensions, annuities or other regular payments'.
Taxpayers must include the following information:
- the amount of maintenance paid by the former spouse. The taxable amount for the recipient is the amount that the former spouse deducted as special expenses (the maximum deductible amount is EUR 24,000 per year and per former spouse).
Example: in 2012, taxpayer X, a Luxembourg resident, received EUR 26,000 in maintenance payments from their former spouse under the terms of a divorce by mutual consent. These payments are taxable for taxpayer X and must be reported on the latter’s tax return in the amount of EUR 24,000.
- expenses for the acquisition of income (standard minimum allowance or actual expenses for acquisition of income). Taxpayers are entitled to a standard allowance of EUR 300 per year for all pensions, annuities or other regular payments received during the year (amounts reported on lines A, B and C combined). For a married couple or civil partners filing jointly, this standard allowance is granted to each spouse or partner receiving this type of regular payment.
How to report maintenance payments received from a former spouse as a non-resident taxpayer
Only non-resident taxpayers who opt to be treated as Luxembourg residents for tax purposes are required to file a Luxembourg income tax return and report the amount of maintenance received from a former spouse in the 'form 100' income tax return, in the section entitled, 'Net income from pensions, annuities or other regular payments'.
Taxpayers must include the following information:
- the amount of maintenance paid by the former spouse, up to a maximum of EUR 24,000.
Example: in 2011, the non-resident taxpayer, X, received EUR 26,000 in maintenance payments from their former spouse under the terms of a divorce by mutual consent. These maintenance payments must be reported by taxpayer X on their tax return in the amount of EUR 24,000.
- expenses for the acquisition of income (minimum flat-rate allowance or actual expenses). Taxpayers are entitled to a standard allowance of EUR 300 per year for all pensions, annuities or other regular payments received during the year (amounts reported on lines A, B and C combined). For a married couple or civil partners filing jointly, this standard allowance is granted to each spouse or partner receiving this type of regular payment.
Online services and forms
Who to contact
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Luxembourg Inland Revenue (ACD)
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
Please click on the link above to find the competent department.
Related procedures and links
Procedures
Links
Further information
Legal references
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Loi modifiée du 4 décembre 1967
concernant l'impôt sur le revenu
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Circulaire du directeur des contributions directes L.I.R. n°109 bis / 1 du 1er juillet 2002
Traitement fiscal des rentes payées à l'ex-conjoint après le divorce
