Business incentives and support
Business incentives in Luxembourg
To strengthen the competitiveness of the national economy, there are a number of business incentives in Luxembourg that encourage companies to expand their activities, develop innovative concepts and products and strengthen their overall competitiveness.
Luxembourg R&D and innovation funding
Many international companies choose Luxembourg as a European hub for research and innovation. The Luxembourg Ministry of the Economy offers R&D funding and innovation grants for:
- Research and development (R&D) projects and programmes
- Feasibility studies
- Innovation aids for SMEs
- Process and organisational innovation
The Ministry of the Economy, the Luxembourg National Research Fund and Luxinnovation regularly organise joint calls for projects in thematic areas such as healthtech, defence and high performance computing. These calls provide incentive and financial support for public-private partnerships that jointly implement R&D projects.
European R&D and innovation funding
Companies located in Luxembourg can also benefit from European funding programmes supporting R&D and innovation:
- Horizon Europe, the EU framework programme for research and innovation all the way from fundamental concept to market uptake
- Digital Europe Programme, which provides funding for accelerating the digital transformation of Europe
- Innovation Fund, one of the world’s largest funding programmes for the deployment of net-zero and innovative technologies
Startup acceleration in Luxembourg
Numerous international startups benefit from Luxembourg Fit 4 Start accelerator programme to expand their business activities in the European market. The programme offers 6 months of coaching, funding of up to €150,000, free access to co-working space and valuable networking opportunities in Luxembourg. Startups can apply from anywhere in the world but must incorporate in Luxembourg to benefit from the co-funding.
Innovative startups established in Luxembourg may also be eligible to apply for a young innovative enterprise subsidy.
Luxembourg equity investment opportunities
Several Luxembourg organisations offer equity investment opportunities to companies.
Luxembourg government loans for businesses
Public sector banking institution SNCI specialises in supporting and developing companies at every stage of their development, providing assistance for startups, expansion, innovation, international projects and business transfers. It grants loans and acquires and manages holdings in companies and funds of strategic importance for the development and diversification of the Luxembourg economy.
Export credit in Luxembourg
Luxembourg Export Credit Agency (Office du Ducroire) provides support for Luxembourg-based companies when trading abroad. It offers financial support for international promotion and insurance solutions for export and investment risks.