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Start and development

How to get support and benefits for business in Luxembourg

In this article we will explain what kind of help a business can get from the government, private or public programs and companies.

Luxembourg offers entrepreneurs everything they need to develop their business — financial support, tax optimization tools, business incubators, and much more.

In the Grand Duchy, there are many support measures for start-ups, as well as for developing companies and start-ups. The Fit 4 Start program, which takes place twice a year, and the support of the HoST business incubator are the most common.

The Luxembourg government is picking tech start-ups to essentially make them its own. These projects can be at completely different stages of development and readiness. Each start-up that reaches the finals receives 150 000 euros. There’s no specific field Luxembourg favors: the projects chosen are always different.
Alex in interview for Luxtoday

Alex in interview for Luxtoday

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State program for startups Fit 4 Start
Startup Development Center

The House of Entrepreneurship (HoE) has the same goal as HoST — to support entrepreneurial ideas and projects. The House of Entrepreneurship supports both start-ups and established businesses:

  • For those who have already started a business  organizes special webinars where it breaks down news relevant to its target audience.
  • For those who are in the process of starting a business — advises on legal issues related to starting a business.
  • For all entrepreneurs — advises on business management issues, e.g. tax, legal, etc., creates an ecosystem of entrepreneurs by networking in the community.

If you are just thinking about starting a business, you may find it helpful to read a step-by-step guide to the process.

The Luxembourg Innovation Agency promotes the digital transformation of the economy in general and businesses in particular. Its mission is to promote collaborative innovation projects that stimulate the development of a sustainable, competitive and digital economy.

Luxinnovation
Логотип Luxinnovation. Cedric Letsch, Unsplash

Luxinnovation acts as a partner for those who want to launch successful innovation activities in Luxembourg: from start-ups and managers of established companies to foreign companies and investors.

In Luxembourg and especially in LuxInnovations I felt the difference from the first interaction. If before I had more or less Zoom calls with no results, here I was allocated to a huge meeting room, and I got a cup of coffee. Then two people came to evaluate and listen to my idea. And they liked the potential.
Daria in interview for Luxtoday

Daria in interview for Luxtoday

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Luxinnovation's programmes

Many business support programs are designed primarily to help companies improve their competitiveness. They provide you with expert advice as well as government funding.

Fit 4 Digital
This track will help you better understand various digital technologies and how they can help you increase sales of your product, find new customers, improve relationships with your audience, and eliminate unnecessary manual processes.
Fit 4 Innovation
In this program, you will learn how to make your business more efficient. You will work with consultants to analyze your operations and identify opportunities to improve your internal organization, finances, and customer relationships.
Fit 4 Innovation — Health Tech Market
This program helps companies navigate the regulatory framework to obtain the specific labeling required for new medical devices and technologies. With this program, you will be able to legalize your product faster and bring it to the European market
Fit 4 Sustainability
For companies that want to combine sustainability with competitiveness. Experts in the field will help you understand energy reduction, carbon footprint and waste reduction, and other environmental issues.

The Innovation Agency offers a wide range of support programs. To understand if you can benefit from their support, just fill out the form on the website.

Luxinnovation has many different programs to support companies of different sizes, and each has its own rules. However, in most cases you can follow our checklist:

What do you need to apply for Luxinnovation programm
Review the checklist carefully
Properly filling out and preparing the application in one of the most important steps in obtaining the support from Luxinnovation.
*The mandatory items are marked with red asterisks.
Ask for consultation from Luxinnovation
In a special section of the website, you can fill out an application and a Luxinnovation consultant will help you choose a program and tell you how to apply correctly.
Review the key selection criteria
These are usually described in the Eligibility section and relate to company size and development areas.
Fill out a special form on the website
The questionnaire consists of standard questions such as company name and logo, names of founders, contact information, etc..
Prepare a short video
Each program has its own requirements for this, but it should always be no longer than 1 minute.
Meet the deadlines
You can always find them on the official Luxinnovation website.
Get feedback
If your application is filled out correctly, Luxinnovation will get back to you with feedback.
Prepare for the pitch
To which you will be invited after your application has been selected To which you will be invited after your application has been selected.
Review the checklist carefully
Properly filling out and preparing the application in one of the most important steps in obtaining the support from Luxinnovation.
*The mandatory items are marked with red asterisks.

Once your application is approved, you will have to:

  1. Analyze your company

    Together with a Luxinnovation consultant, you will be able to analyze your business for a further action plan.

  2. Get feedback from the expert

    Based on the analysis, the expert will draw up a specific plan for the development of your company, including a financial plan and recommendations for further actions.

  3. Request financial compensation

    After receiving the final plan from the expert, you will be eligible for a government grant that will cover up to 50% of the cost of the consultation.

Any company established in or operating from Luxembourg must pay taxes: such companies are considered tax residents. However, the Grand Duchy has a rather convenient tax system and several tax regimes.

Tech companies in Luxembourg have an effective income tax rate of 5%. If what you are doing is an intellectual property product, then you can pay taxes at a favorable rate.
Alex on interview for Luxtoday

Alex on interview for Luxtoday

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Tax optimization
Progressive corporate tax scale
Variable VAT rate
Special tax regime
Taxes
Company
Finance
Read more about tax declarations for companies and individuals in our article
Read more

In Luxembourg, there are several ways to get financial support through different instruments.

SNCI
Credit forms
Crowdfunding
Investment grants
faq

Frequently Asked Questions (FAQ)

Can startups in Luxembourg receive government support

Does Luxembourg have tax incentives for companies and startups

Is it possible to get a business loan in Luxembourg

We took photos from these sources: Floriane Vita for Unsplash

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