2026 European tax deduction reforms tighten rules on retirement savings and auto insurance

In France, new rules for the Plan d’épargne retraite (PER) take effect in 2026. Contributions remain deductible up to 10 % of professional income or the PASS, with annual ceilings of roughly €4,637 – €37,096. A key change is that contributions made after the age of 70 will no longer be tax‑deductible, altering retirement planning for seniors.

In Belgium, the 2026 fiscal overhaul linked to the Van Peteghem law eliminates the deductibility of auto‑insurance premiums for thermal and hybrid vehicles, setting the deduction rate at 0 %. Fully electric vehicles ordered in 2026 retain a 100 % deduction, while vehicles ordered after 2026 see a phased reduction (95 % in 2027 down to 67.5 % from 2031). Transitional provisions apply to contracts signed before 2026, with partial deductions for older orders. These measures aim to accelerate the shift to zero‑emission fleets.

Both reforms reshape how individuals and businesses can reduce taxable income, influencing financial planning and vehicle procurement decisions across the two countries.