On 17 December 2025, the Luxembourg Parliament enacted a law introducing, as of the 2026 tax year, a new start-up tax credit designed to encourage individuals to invest in young, innovative companies.
The final version of the law reflects amendments proposed by the government during the legislative process to address formal objections raised by the Council of State.
Despite its limited scope and strict conditions, the start-up tax credit underscores Luxembourg’s commitment to enhancing national competitiveness and represents a significant step in the country’s strategy to strengthen its start-up ecosystem.
In this Alert, our Tax Partner, Antoine Dupuis, and our Chief Knowledge Officer, Marie Bentley, outline the key provisions of the Law and explains how the new start-up tax credit is calculated.