Luxembourg: Proposed legislation includes tax credit for start-up companies

Tax credit to aid start-ups in securing financing

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July 14, 2025

The government in April 2025 introduced a bill proposing a new tax credit to support young innovative companies in accessing financing during their initial years.

The bill outlines eligibility criteria for both investors and start-ups, specifying investment requirements and conditions for the tax credit. Key points include defining eligible investors, criteria for innovative start-ups, and the maximum and minimum investment thresholds. If enacted, this bill would take effect from the 2026 tax year.


For more information, contact a KPMG tax professional in Luxembourg:

Sacha Thill | sacha.thill@kpmg.lu

Xavier Martinez | xavier.martinez@kpmg.lu

Frederic Scholtus | frederic.scholtus@kpmg.lu

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