On the tax incentive front, Luxembourg plans to introduce a tax credit for individuals who invest in a startup and will apply a favorable tax regime for stock option plans granted to startup employees.
To further boost innovation in the financial sector and continue to attract Fintech firms, the Luxembourg House of Financial Technologies (LHoFT), which currently hosts over 80 companies, will put in place an “AI Experience Center”. These efforts are complement by an AI Factory in Luxembourg, deploying cutting-edge digital infrastructures to support AI advances in the key domains of finance, space, cybersecurity, and sustainable development. These two tools will strengthen the country’s international positioning as an innovation hub.
The LHoFT and Startup Luxembourg will also developing a programme of events to connect the Fintech community with priority innovation sectors (space, health, mobility, and digital technologies) in order to encourage and intensify synergies between different industries.
Finally, the Ministers announced that the Société Nationale de Crédit et d’Investissement (SNCI) will dedicate an additional 300 million Euros over a 5-year period to finance startups and innovation through various instruments (debt, mezzanine, capital investment) to facilitate access to funding for innovative young companies in Luxembourg. This funding comes on top of the existing Luxembourg Future Fund 2.