Le Gouvernement du Grand-Duché du Luxembourg
Acceleration, loans and grants

Business incentives and support

Companies that establish a sustainable presence in Luxembourg can benefit from public funding programmes for R&D, innovation, startup acceleration and market expansion. 

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:

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.

Digital Tech Fund
The fund invests in early-stage startups with global ambitions. Key sectors include cybersecurity, fintech and regtech, big data, digital health, digital learning, digital platforms, the internet of things and new space
Luxembourg Future Fund
The fund invests in the form of fund commitments and/or co-investments, in fields including climate technologies, artificial intelligence, cybersecurity, energy resilience, life science and medical technologies, and new space technologies
Luxembourg Business Angel Network (LBAN)
LBAN aims to unlock the potential of private investors and help entrepreneurs thrive in Luxembourg and beyond. It includes over 100 business angels investing in scalable startups
Luxembourg Private Equity and Venture Capital Association (LPEA)
LPEA, which represents, promotes and protects the interests of private equity companies and venture capitalists in Luxembourg, has over 500 members

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.

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Are you interested in how Luxembourg can support your business expansion in Europe? Get in touch for free, customised information on available resources and cooperation opportunities.

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