Luxembourg and the EU put substantial resources behind startups — but the landscape is scattered across ministries, agencies and EU bodies. Most founders only hear about one or two programmes. This guide maps all five categories so you know what's on the table before you apply.

The five funding categories in Luxembourg

1. Accelerators & early-stage

If you're pre-revenue or just incorporated, start here. The flagship is Fit 4 Start, Luxembourg's national startup accelerator: six months of coaching, free co-working and up to €150,000 in equity-free funding. Selection is competitive — two cohorts per year, judged by an independent jury.

For first-time founders, Primo-création offers €12,000 over six months as a non-repayable cash grant. It's designed for newly created micro-enterprises in commerce and craft — no equity, no repayment.

2. R&D & innovation

If you're building something technically new, Luxembourg co-funds your development costs. R&D & Innovation Aid covers industrial research and experimental development, with higher co-funding rates for smaller companies and collaborations.

The EU's flagship EIC Accelerator offers grants up to €2.5M plus optional equity for deep-tech breakthroughs — the most competitive instrument in Europe.

3. SME & growth

Established businesses can tap SME Packages, which reimburses 70% of digital, AI, cybersecurity and sustainability consulting projects (€3,000–€25,000 per project).

4. Tax incentives

The IP Box exempts 80% of qualifying IP income from Luxembourg tax — including self-developed software. For companies investing in equipment, the Investment Tax Credit returns 12–18% of qualifying costs.

5. Loans & financing

SNCI Financing provides long-term public loans for Luxembourg companies — typically co-financing around 25% of industrial projects, and up to 75% for startups.

The golden rule: file before you start

One rule applies across virtually every scheme: the application must be submitted before you sign contracts or begin the project. Signed quotes or started work usually disqualify you. This catches first-time applicants constantly — especially when booking a consultant or ordering equipment feels like "preparation" but the scheme treats it as the project already started.

We handle this: we structure your timeline so the application files first, and the work begins after approval. It's the single most important process detail and the reason most rejections happen.

Read The Sàrl-S: how to incorporate in Luxembourg without a notary for the company setup that unlocks most of these programmes.