Can I include my life insurance in the tax return?

The home insurance is a form of financial protection that we can take out to protect our home and personal belongings. In addition to providing security against unforeseen events, many people are not aware that its cost can be included as a deduction in the annual tax return.

In most cases, home insurance is not an expense that can be directly deducted. However, there are specific situations in which it is possible, especially when the insurance is related to a person's professional or economic activity.

Cases in which you could include home insurance in the tax return

• Home insurance and economic activity

If you work from home or have an economic activity in your home, such as an office, you can include a proportional share of the home insurance premium in your annual tax return. This applies mainly to self-employed workers or those who run a business from home. In this case, the part of the insurance corresponding to the part of the home used for the professional activity could be deducted as an activity expense.

For example, if you dedicate 20% of your home to work activity (an office, workshop or consultation), you may deduct 20% of the total cost of the home insurance policy as an expense of your economic activity.

• Deduction for renting a home

If you rent a home that you own and have taken out an insurance policy to protect it, you can deduct the expenses linked to the property in your annual tax return, including the insurance. In this case, the home insurance policy is associated with the income you obtain from renting the home. It is important to note that the deduction would only be applicable if you are renting the property. It would not be deductible if you own the property and use it as your main residence.

Despite home insurance not being a deductible expense in the annual tax return in most cases, there are exceptions, especially if you carry out an economic activity at home or rent a property. In these cases, you can include a proportional part of the insurance as a deductible expense in your tax return. You must check your country's tax laws, and if you have any doubts about how to proceed, ask a tax adviser. They will help you take advantage of the available tax deductions available and avoid errors in your annual tax return.

If you still don't have home insurance, we recommend that you take a look at our DKV home insurance.