The Luxembourg government has recently approved draft law n°8526, which introduces a start-up tax credit effective from 2026. The initiative aims to encourage investment in young, innovative companies by improving their access to early-stage financing and enhancing the overall attractiveness of Luxembourg’s start-up ecosystem.
To qualify for the start-up tax credit, an investor must be an individual – either a Luxembourg tax resident or non-resident – who invests directly in a company that meets the criteria of a start-up entity and holds the shares for a continuous period of at least three years.
Christina Leomy-Voigt and Marie Bentley from our Luxembourg member firm ATOZ Tax Advisers have published an article outlining the conditions both investors and start-up companies must meet to benefit from the credit, as well as how the credit amount is determined.
You can read the full article here.