The facts. In 2025, Luxembourg's Ministry of the Economy approved 2,326 state aid applications, amounting to €440 million in capital grants and tax credits. This support facilitated nearly €1.2 billion in investments across the economy. The aid targeted companies of all sizes and development stages, from start-ups to industrial firms. Notably, the law of 6 June 2025 renewed the structure for research, development, and innovation aid, introducing thematic project calls and simplifying procedures for SMEs.
Why it matters for international business. This substantial state aid underscores Luxembourg's commitment to fostering economic growth and innovation. For international investors and fund managers, it signals a supportive environment for business development and technological advancement. The emphasis on research and development, coupled with streamlined processes for SMEs, enhances the Grand Duchy's attractiveness as a destination for investment and entrepreneurial ventures.
Last updated: 2026-05-13
Frequently asked questions
What was the total amount of state aid granted by Luxembourg in 2025?
Luxembourg's Ministry of the Economy granted €440 million in state aid in 2025.
How many aid applications were approved in 2025?
A total of 2,326 aid applications were approved in 2025.
What was the impact of the state aid on investments?
The state aid facilitated nearly €1.2 billion in investments across the Luxembourg economy.
Which sectors benefited from the state aid?
The aid targeted companies of all sizes and development stages, including start-ups and industrial firms.
What changes were introduced in the research and development aid structure?
The law of 6 June 2025 renewed the structure, introducing thematic project calls and simplifying procedures for SMEs.
Glossary
State aid
Financial assistance provided by the government to support businesses and stimulate economic growth.
Capital grants
Non-repayable funds provided by the government to finance specific projects or investments.
Tax credits
Reductions in tax liability granted to businesses as an incentive for certain activities or investments.
