Effective giving from Luxembourg: high-impact charities and tax deduction

Romain Barbe

Founder · Mieux Donner · 10 min read

A guide built on independent research

This article draws on the work of Lorenzo Fong Ponce, an analyst based in Luxembourg, who published an internal guide in July 2026 on tax-efficient giving from the Grand Duchy.[5] We are grateful to him for making his findings accessible.

What Luxembourg's tax system allows

Luxembourg residents can deduct donations to approved organisations from their taxable income. The mechanism works in two stages: you give first, then declare the total on line 328 ("Dons et libéralités") of your annual return (form 100). The ACD (Administration des contributions directes) then refunds the difference with your tax assessment.

The actual saving depends on your marginal tax rate:

Which charities qualify?

A charity qualifies for tax deduction in Luxembourg if it falls into one of four categories:

Against Malaria Foundation: effective AND deductible from Luxembourg

The Against Malaria Foundation (AMF) distributes insecticide-treated bed nets across sub-Saharan Africa. It has been ranked among the world's most effective charities by GiveWell continuously since 2009.[1]

AMF is accessible through the Giving Europe network, which confirms Luxembourg as an eligible country. The local partner is the Fondation de Luxembourg: it processes your donation, transfers it to AMF and sends you the tax certificate.

Giving Europe charges a 5% fee on donations below €100,000. On a €1,000 donation, this amounts to €50, easily absorbed by a tax saving of at least €390.[5]

Other recommended charities: availability for Luxembourg

To register your interest and encourage the addition of more charities, contact the Transnational Giving Europe office at the Fondation de Luxembourg: tge@fdlux.lu

How to give in practice: four steps

By giving budget

Under €1,000 per year

Giving Europe is the right route: confirmed deductibility, validated impact, straightforward process. The 5% fee is negligible against the tax saving.

Between €1,000 and €50,000 per year

Prioritise Giving Europe for the deductible portion (primarily AMF). For GiveWell-recommended charities not yet available in Luxembourg via Giving Europe, a direct donation remains possible without tax deduction. The question becomes a deliberate choice between fiscal advantage and access to the full portfolio.

The following section covers the EU equivalence rule, which could in theory open access to additional charities through a direct donation. The conditions are more restrictive than they might appear.

Over €50,000 per year

The Fondation de Luxembourg offers the creation of a hosted foundation. You contribute to a named structure under its umbrella, which then directs funds to the charities of your choice, including those not available through Giving Europe. The terms: 5% on outgoing grants, with a minimum annual fee of €5,000. This mechanism becomes relevant above €50,000 in annual donations.

Mieux Donner has already supported donors through the process of setting up a hosted foundation. We offer this service free of charge to people who want to have a significant impact with their giving.

Fondation de Luxembourg: secr@fdlux.lu / fdlux.lu

The EU equivalence rule: what it actually allows

Art. 112 LIR and Circular L.I.R. n° 112/2 (7 April 2010) establish a deduction mechanism for donations to organisations based in an EU or EEA member state. This mechanism follows from the Persche ruling (CJEU, 2009), which requires member states not to discriminate against eligible foreign organisations relative to their domestic counterparts.[6]

The test set out in Art. 112 LIR is cumulative, and that detail matters. A foreign organisation must meet two conditions simultaneously:

The case of Mieux Donner and Effektiv Spenden

Mieux Donner in France and our German counterparts at Effektiv Spenden share the same mission: to promote effective giving by directing donations to the highest-impact organisations per euro, using independent evaluators. What drives us is impact, and therefore where the money ultimately goes. Our model is not designed to serve people from any particular country. We do not retain funds: they pass through to the most effective organisations in the world, wherever they are based.

If organisations such as Mieux Donner or Effektiv Spenden were recognised as equivalent to an approved body in Luxembourg, they could serve as receiving entities for Luxembourg donors, opening access to the full portfolio of effective giving causes: global health and poverty, climate, animal welfare, and catastrophic risks. Without platform fees, and without being limited to the charities available through Giving Europe.

The key question is this: if an organisation with our current model were established in Luxembourg, would it satisfy the criteria for Luxembourg's tax deduction? That is the equivalence test that Art. 112 LIR invites us to examine.

What this rule could open up for direct charities

Beyond intermediaries, the EU equivalence rule also offers a route for operational charities established in the EU that are directly comparable to a Luxembourg category. These organisations work in their cause area themselves, in fields recognised as serving the public interest. Some examples from the causes we cover:

• Climate: Futur CleanTech Architects
• Animal welfare: Synergia Animal
• Sustainable food: Good Food Institute Europe

For each, the question is the same: is it similar enough to an approved category in Luxembourg? The answer depends on a case-by-case analysis, which we can explore with you.

British organisations (AMF UK, GiveDirectly UK) are out of scope since Brexit: the United Kingdom belongs neither to the EU nor to the EEA.

Frequently asked questions