New Tax Credit Boosts Start-Ups and Worker Incentives

Luxembourg has introduced a new tax credit in 2026 to encourage private investment in start-ups and strengthen the country’s business ecosystem. The measure is part of the government’s wider economic and employment reforms.

Investors who put money into eligible Luxembourg start-ups can now claim a tax credit worth 20 percent of their investment. The credit is capped at €100,000 per year and is designed to support young companies during their early growth stages.

Alongside this, the government has updated tax rules linked to employment. Employers who hire seasonal workers or trainees now benefit from higher wage limits that qualify for flat-rate taxation.

The changes also affect certain sectors, including agriculture. Workers in these fields are now allowed to work longer continuous periods under the flat-rate tax system, offering greater flexibility for both employers and employees.

According to the government, these measures aim to attract investment, support job creation, and make Luxembourg more competitive for start-ups and businesses.

Read more: gouvernement.lu/en/actualites/toutes_actualites/articles/2025/12-decembre/nouveautes-2026.html

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