Voted by the Luxembourg Chamber of Deputies on 5 July 2018, the draft law 7119 on supplementary pension schemes (known as "law RCP") endorsed the possibility offered to self-employed, independant workers and liberal professionnals to benefit from a complementary pension in a tax-advantageous way. Thus, under the new law:

• Independents
• Liberal professions such as lawyers, architects, doctors, dentists, vets but also accountants or consultants, among others...
• Small business leader

Will be eligible to this new supplementary pension scheme. The effective date is set on January 1st, 2019 : get yourself ready in order to benefit from all the possibilities.

The new law has introduced a favorable tax regime. Premiums paid into a self-employed supplementary pension plan are deductible as a "special expenses". Amounts are deductible up to 20% of annual incomes, with no ceiling, and come to reduce the taxable income.

Because a flat rate of 20% withholding tax plus a 0.9% charge are applied on the premiums when they are payed, there is no tax whatsoever on the benefits when assets are finally used at retirement age. 

Self-employed, liberal professionnals and independant workers are able to choose their premium amount in  avery flexible manner : they can adapt the payments at each and every moment of the year.

In terms of investments types, they can choose for a classical investment vehicle with a guaranteed interest rate or decide for a unit-linked life insurance which whose performance depends on financial markets. A third possibility consists in blending the two options.

Only your personal risk profile, investment horizon and retirement anticipation will guide the choice.