The Wüstenrot scheme for regular saving

Got a real estate project in mind?

What is the Wüstenrot savings scheme?

Are you thinking about buying property in Luxembourg or Germany? Are you already a homeowner? If so, you will be well aware that a sizeable budget is required for upkeep and future home improvements.
Thanks to the Wüstenrot savings scheme, offered by our partner, you can start making regular, scheduled savings today to set aside money for your projects.

In fact, the savings accumulated in this home savings scheme are intended to finance any expenses related to your main residence⁽¹⁾:

the purchase or construction of your main residence;
the renovation or refurbishment of your home;
the purchase of a plot to build your home;
the repayment of mortgages linked to the acquisition and renovation mentioned above.

The advantages of the Wüstenrot savings scheme

The main advantages of the standard home savings scheme at a glance:

Build up equity for your real estate project while paying tax-deductible premiums⁽²⁾;
Benefit from the right to a Wüstenrot home savings loan⁽³⁾ at a fixed rate, defined when you sign up to the scheme;
Invest your funds in a standard, risk-free savings scheme with a fixed rate throughout.

Tax deductions

Since the 2017 tax reform, a certain amount of your home savings are tax deductible. The amount depends on your age and the composition of your household.

Please note: it is the age of the youngest taxpayer in the household that determines the applicable limit!

	from 18 to 40 years of age		in other cases
Family situation	No spouse	with spouse⁽⁴⁾	No spouse	with spouse⁽⁴⁾
Taxpayer	EUR 1,344	EUR 2,688	EUR 672	EUR 1,344
Taxpayer + 1 child	EUR 2,688	EUR 4,032	EUR 1,344	EUR 2,016
Taxpayer +2 child	EUR 4,032	EUR 5,376	EUR 2,016	EUR 2,688
Taxpayer +3 child	EUR 5,376	EUR 6,720	EUR 2,688	EUR 3,360
etc (per additionnal child)	+ EUR 1,344	+ EUR 1,344	+ EUR 672	+ EUR 672

It should be noted that for each additional dependent child, an additional €672
may be added to your savings⁽⁵⁾.

Good to know

The home savings scheme allows you to benefit from tax deductions on eligible premiums paid over a period of 10 years. At the end of the 10-year home savings scheme, even though you are free to dispose of your assets as you wish, you are advised to use the funds for the property expenses mentioned above.

If you do not use the funds to finance a real estate project linked to your main home⁽¹⁾ throughout the 10-year eligibility period, you risk having to repay the tax deductions received and no longer being able to benefit from the tax deductions linked to a future home savings scheme.

Similarly, if you wish to draw on your savings before the 10 years have elapsed, you will have to pay back the tax deductions received in previous years, even if you use them in a compliant manner.

You can sign up to several home savings schemes if you comply with the period of deductibility of the premiums paid and if the assets under the scheme are allocated in accordance with the legislation.

The Wüstenrot scheme: for easier access to a mortgage

Once you decide to purchase or renovate your main residence, certain facilities will be available to you when applying for a mortgage from your bank.
In addition to the amount already saved, which serves as an equity contribution to your project, you can combine a standard mortgage⁽³⁾ with the Wüstenrot home savings scheme. This combination allows you to continue to benefit from tax deductions while incorporating the savings component into your monthly loan payment.

Find out more about the savings scheme linked to a mortgage

(1) Your main residence is where you actually live on a regular and usual basis. It is your tax address.
(2) Tax deductibility varies based on the personal situation of each client and is subject to change.
(3) Offer subject to terms and conditions and approval of your application by the bank.
(4) Partners will be taxed jointly.
(5) The children's bonus is granted for children for whom the taxpayer obtains a child tax allowance.