# Inspiring colleagues in Luxembourg on Effective Giving + identifying infrastructural gaps

> Source: <https://forum.effectivealtruism.org/posts/SPZnjewG6PCXz89Nd/inspiring-colleagues-in-luxembourg-on-effective-giving>
> Published: 2026-07-07 21:37:08+00:00

My [LinkedIn](https://www.linkedin.com/feed/update/urn:li:activity:7480154389651951618/) post on why and how I did this got high-quality comments from 4 Effective Giving Initiatives within 12 hours. They were interested in the full research.

So here we are!

**Bonus actionable content not on the LinkedIn post: Skip to "High-Impact Project" at the end.**

**AI use disclosure: **I extensively used Claude Code below the "---". I think that was the whole point though, for me to clear sidequest in 15 hours. I heavily vibe-edited it for exponential taste. 5 examples:

*While 95% written by AI, I maintain this is a labour of love. Pls note I removed all narrative / links related to my current employer (Amazon) in the wiki below.*

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**Luxembourg residents save at least EUR 390 for every EUR 1,000 donated**. The rules are specific and the most impactful charities aren’t always the most obvious ones.

This guide helps you:

| Rule | Detail |
|---|---|
| Minimum | EUR 120 total donations per year to qualify (zero deduction below EUR 120) |
| Maximum | 20% of net taxable income or EUR 1,000,000 (whichever is lower) |
| Carry-forward | Excess above the cap can be carried forward 2 years |
| Receipt | Formal “attestation” from recipient org |
| Filing | Attach receipts to your annual tax return (declaration d’impot) |

**Legal basis:** Art. 109(1) no. 3 and Art. 112 LIR.

**Who qualifies:** All Luxembourg tax residents, regardless of nationality. If you live in Luxembourg and file a tax return here, you qualify. Cross-border workers (frontaliers) can also claim if they opt for resident-equivalent tax treatment.

Your donation is deductible if it goes to one of four categories:

You can check the official lists directly:

Not all charities achieve the same results per euro. Independent charity evaluators such as [GiveWell](https://www.givewell.org/) rigorously evaluate charities on cost-effectiveness; their top recommendations can be 10-100x more impactful per euro than typical charities.

**You don’t have to choose between tax efficiency and impact.** At least two of GiveWell’s top-rated charities are available to Luxembourg donors with full tax deductibility via the [Giving Europe](https://www.giving.eu/) network. Giving Europe retains a 5% fee on donations under EUR 100K (e.g. EUR 50 on a EUR 1,000 donation). This is more than offset by the tax saving.

The [ Against Malaria Foundation (AMF)](https://www.againstmalaria.com/) distributes insecticide-treated bed nets in sub-Saharan Africa. The numbers:

For Luxembourg donors specifically:

| Charity | GiveWell rated? | Luxembourg available via Giving Europe? |
|---|---|---|
| Against Malaria Foundation | Top charity | Yes (confirmed) |
|

If you’d like to see more charities added for Luxembourg, contact the Transnational Giving Europe desk at Fondation de Luxembourg: [ tge@fdlux.lu](mailto:tge@fdlux.lu) | +352 274 748 1 |

**Want access to the full range of effective charities?** See the [EU Equivalence Rule](https://stackedit.io/app#advanced-eu-equivalence-rule-art-112-lir) (donate directly to Effektiv Spenden, no fee) or the [EUR 50K+/year option](https://stackedit.io/app#eur-50000year) (sheltered foundation, any charity worldwide).

In Luxembourg, charitable tax relief works as **“donate now, claim back later”**. You make donations from post-tax income, then deduct them on your annual tax return:

Make your donation by bank transfer, card, or standing order. Ensure the recipient is on the approved list (see above) or qualifies via Giving Europe.

The charity (or Fondation de Luxembourg, if donating via Giving Europe) sends you a formal receipt: the “attestation de don”. Most Luxembourg charities send these automatically in January/February for the previous year’s donations. For Fondation de Luxembourg specifically, a bank statement showing the transfer has also sufficed since 2009. Keep it safe.

Enter the total in your annual *declaration d’impot sur le revenu* (form 100):

If you file jointly with a spouse, only one of you claims the combined total.

The deduction reduces your taxable income. The actual tax saving depends on your marginal rate:

| Marginal rate | Tax saved per EUR 1,000 donated |
|---|---|
| 39% (EUR 45K-EUR 100K bracket) | EUR 390 |
| 40% (EUR 100K-EUR 150K) | EUR 400 |
| 41% (EUR 150K-EUR 200K) | EUR 410 |
| 42% (EUR 200K+) | EUR 420 |

The refund arrives with your tax assessment, typically mid-year following the filing year.

**How to donate via Giving Europe:**

**Questions about the donation process?** Contact the Transnational Giving Europe desk at Fondation de Luxembourg (they handle your donation and issue your tax attestation): [tge@fdlux.lu](mailto:tge@fdlux.lu) | +352 274 748 1

**Recommended:** Donate to AMF via Giving Europe. You get the deduction AND maximum impact.

**Recommended:** Route as much as possible through Giving Europe (AMF, possibly Malaria Consortium). Consider a split strategy for charities not on the platform:

**Tax maths at EUR 5,000 via Giving Europe (42% marginal rate):**

**Alternative (untested but legally plausible):** Donate directly to [Effektiv Spenden](https://www.effektiv-spenden.org/) (Germany) and claim the deduction under the EU equivalence rule. Zero fees, full amount reaches the charity, unlocks all GiveWell top charities. Meets all formal criteria of Circular 112/2 but no Luxembourg donor has publicly confirmed acceptance. See the [EU Equivalence Rule](https://stackedit.io/app#advanced-eu-equivalence-rule-art-112-lir) section for details and risks.

**Consider:** Contact Fondation de Luxembourg about a **sheltered foundation** (fondation abritee).

This works like a donor-advised fund:

**Costs:** FdL charges 5% on outgoing grants (or 0.8%/year on endowment capital), with a **minimum annual fee of EUR 5,000**. In practice, this only makes economic sense above EUR 50K/year in grants (below that, the EUR 5K floor dominates).

This unlocks the full GiveWell portfolio (GiveDirectly, Helen Keller International, New Incentives, etc.) with Luxembourg tax deductibility.

**Contact:** Fondation de Luxembourg philanthropy advisors, [fdlux.lu](https://www.fdlux.lu/en) | [secr@fdlux.lu](mailto:secr@fdlux.lu) | 12, rue Erasme, L-2012 Luxembourg

**Cap awareness:** At 20% of net income, a EUR 150K earner can deduct up to EUR 30K/year. If you hit the cap, remember the 2-year carry-forward.

**Example:** At a EUR 70K salary with the 🔸 10% Pledge, you donate EUR 7,000/year. Via Giving Europe at a 39% marginal rate, you get EUR 2,730 back on your tax return. Giving Europe takes a 5% processing fee (EUR 350), so EUR 6,650 reaches the charity. Net cost to you: EUR 4,270.

If you believe a charity’s impact justifies the full cost, you can always donate directly. GiveWell’s full list of recommended charities is at [givewell.org/charities/top-charities](https://www.givewell.org/charities/top-charities).

**When might this make sense?**

**The maths:** At a 42% marginal rate, forgoing the deduction means EUR 1,000 of donations costs you EUR 1,000 instead of EUR 580. The charity still receives EUR 1,000 either way. The question is whether you value the EUR 420 tax saving more than directing it to a specific high-impact org.

Under Art. 112 LIR and [Circular 112/2 (7 April 2010)](https://impotsdirects.public.lu/dam-assets/fr/legislation/legi10/Circulaire_L_I_R__n___112-2_du_7_avril_2010.pdf), donations to organisations in **EU or EFTA** countries that are recognised as serving the public interest under their own national law may be deductible, even without appearing on Luxembourg’s published lists.

**Why this exists:** EU law (the ECJ *Persche* ruling, 2009) requires all member states to treat qualifying foreign EU charities the same as domestic ones. Luxembourg’s implementation is relatively donor-friendly: self-declaration based, verified only “in case of doubt.” The circular has been in force since 2010 (16 years) and no published court cases exist testing it for effective giving charities specifically, but the absence of litigation suggests claims are generally accepted.

**Important:** This only applies to charities seated in EU or EFTA states. Post-Brexit, UK-based charities (including Giving What We Can) are **not eligible** under this route.

**How it works:**

**Conditions:** The foreign charity’s home country must itself allow tax deductions for domestic charitable donations (reciprocity). Germany, Belgium, France, Netherlands, and all other EU/EFTA states satisfy this.

**Most promising candidate: **[ Effektiv Spenden](https://www.effektiv-spenden.org/) (Germany). A registered nonprofit that regrants to GiveWell top charities (AMF, GiveDirectly, Helen Keller International, Malaria Consortium, New Incentives) plus climate and animal welfare. Zero fees. Issues its own donation receipt. Tax-exempt and deductible for German residents. All four Circular 112/2 conditions are met.

However, no Luxembourg donor has tested this route publicly, and Effektiv Spenden does not currently list Luxembourg as a served country.

**Also possible: AMF France (direct).** Against Malaria Foundation has its own French charity registration. A direct donation to AMF’s French entity + Art. 112 claim could work and avoids Giving Europe’s 5% fee. Arguably a stronger legal position than a regranting platform because AMF France is a direct charity, not an intermediary.

**Not eligible (post-Brexit):** UK-based charities (GWWC, AMF UK, GiveDirectly UK) no longer qualify. The UK is neither EU nor EFTA. The EU-UK Trade and Cooperation Agreement is silent on charitable tax treatment. Use Giving Europe instead for AMF.

**Practical recommendation:** If you donate EUR 1,000+ directly to Effektiv Spenden, claim the deduction on your return, and keep a bank statement. If you want extra safety, ask Effektiv Spenden for a certificate confirming their charitable status (they can provide this in German, which is one of Luxembourg’s official languages).

No Luxembourg donor has publicly confirmed a successful Art. 112 deduction for Effektiv Spenden. The first person to do so could open a zero-fee, full-portfolio path to all GiveWell top charities for Luxembourg donors.

**Step 1: Request a rescrit fiscal.** A rescrit fiscal is a formal advance ruling from the ACD. You submit a written request asking “is a donation to Effektiv Spenden deductible under Art. 112 LIR?” If the ACD confirms, that ruling gives you certainty for your own ongoing donations and signals the ACD’s acceptance of this route, making it easier for others to claim the same deduction with confidence. The cost is your time writing the request; there is no fee.

**Important limitations:** A rescrit is binding only for the taxpayer who requests it. It does not formally bind the ACD for other donors. However, under Luxembourg’s principle of equal treatment (egalite devant l’impot), the ACD would need a reason to treat identical cases differently. In practice, a successful rescrit makes the route significantly safer for everyone.

**Step 2 (bigger project): Push for a ****circulaire****.** A circulaire is a general administrative instruction from the ACD that applies to all taxpayers. If the ACD issued a circulaire confirming how to claim cross-border EU donations (documentation standards, equivalence criteria), that would be definitive for everyone. The path to making this happen:

This is a longer-term advocacy project (months to years), but even 5-10 engaged Luxembourg donors could make it happen. The existing [Circular 112/2](https://impotsdirects.public.lu/dam-assets/fr/legislation/legi10/Circulaire_L_I_R__n___112-2_du_7_avril_2010.pdf) was itself prompted by the 2009 [Persche ruling](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62007CJ0318) creating a gap that needed filling.

If you’re interested in either path, reach out to me (Lorenzo Fong Ponce) or comment below. These administrative projects have potentially outsized impact for the effective giving community in Luxembourg.

| Resource | Link |
|---|---|
| Official approved charity lists (ACD) |
|