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Luxembourg: Start-up investment tax credit enacted

20% investment tax credit, effective from the 2026 tax year

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january 22, 2026

A new law introducing a 20% start-up investment tax credit, effective from the 2026 tax year, aims to channel private capital into young, innovative companies while setting eligibility and governance safeguards.

Resident individuals and eligible nonresidents can claim a nonrefundable 20% credit on qualifying cash subscriptions of at least €10,000, with a maximum of €100,000 per taxpayer per year. Eligible investments must be in newly issued, fully paid-up, directly held registered shares or units of qualifying start-ups focused on innovation. Additional requirements include a three-year holding period, a 30% ownership cap, and a €1.5 million per entity ceiling.

Read a January 2026 report prepared by the KPMG member firm in Luxembourg

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