Tax advantages and millions of millions for start-ups: government wants to attract young talents

650 start-ups are active in Luxembourg. And this number should continue to grow. Although the current start-up ecosystem should not be underestimated, as Finance Minister Gilles Roth emphasizes, incentives are to be created that should continue to advance young entrepreneurship in Luxembourg.

For this reason, Finance Minister Gilles Roth and Minister of Economics Lex Delles presented an action plan on Monday, which mainly refers to the support of start-ups and scale-ups. Start-ups are companies that are still in the founding shoes, whereas scale-ups already exist, young companies with a clear financial plan.

As Lex Delles describes in the presentation of the project, the action plan revolves around three concrete measures « : the support of start-ups, the support of scale-ups and the further development of a start-up ecosystem in Luxembourg.

The aim of the plan is to promote start-ups and scale-ups on the one hand and to attract new entrepreneurs on the other. « Because we see that part of the start-ups that develop in Luxembourg or in Europe when it comes to capitalization (applying funds, editor’s note), » explains other markets such as Asia or America, « explains Delles.

The measures presented should avoid this and create incentives for entrepreneurs, but also investors and generate growth. The financial center is intended to play the role of a financing center for innovation. This « should use his ‘tool box’ with investment funds and other financing instruments to combine capital with ideas, » says Gilles Roth.

Create incentives

Among other things, the ministers spoke of a tax credit for investments in young, innovative companies. This increases the attractiveness for so -called « Business Angel », which with its investment receives shares in a young company. Because start-ups in particular usually take a great risk with their foundation, as Roth underlines. Therefore, tax incentives have to be created so that investors contribute the necessary capital and start-ups to develop.

Among other things, the ministers spoke of a tax credit for investments in young, innovative companies. This increases the attractiveness for so -called « Business Angel », which with its investment receives shares in a young company. Because start-ups in particular usually take a great risk with their foundation, as Roth underlines. Therefore, tax incentives have to be created so that investors contribute the necessary capital and start-ups to develop.

Another important point that the ministers address concerns the shortage of skilled workers. « It’s not just about attracting talents, but also keeping them, » emphasizes Minister of Economic Affairs Lex Delles. Therefore, a “Talent Desk” is planned, which should serve as a central point of contact for foreign talents who want to join a start-up or scale-up.

This project is created from a collaboration between the ministries, the Chamber of Commerce, Chamber of Crafts and Luxinnovation. At this talent desk, specialists receive all the information, which facilitates the “integration into the local economy”.

Financial injection of the SNCI

In order to cover the growing financing requirement of young companies with a view to new talents, the national credit and investment company SNCI will provide 300 million euros over a period of five years. This sum comes from the « Luxembourg Future Funds 1 and 2 » in addition to the existing 350 million euros. The SNCI will provide various instruments such as own or debt capital to facilitate access to financial resources for entrepreneurs. As Lex Delles explains, the focus here is particularly on innovative companies that work in the areas of cyber security, health tech or cleantech.

In order to cover the growing financing requirement of young companies with a view to new talents, the national credit and investment company SNCI will provide 300 million euros over a period of five years. This sum comes from the « Luxembourg Future Funds 1 and 2 » in addition to the existing 350 million euros. The SNCI will provide various instruments such as own or debt capital to facilitate access to financial resources for entrepreneurs. As Lex Delles explains, the focus here is particularly on innovative companies that work in the areas of cyber security, health tech or cleantech.

The number of fintechs in Luxembourg should also grow. The country currently has 280 companies that work in financial technology. Therefore, the development of an “AI Experience Center” by the Luxembourg House of Financial Technologies (Lofoft) is continued “to use the expertise of the financial center”, as the ministers explain. An “Ai Factory” has already been announced. « Both projects will strengthen the international positioning of Luxembourg as an innovation hub that uses a state -of -the -art digital infrastructure. »

In conclusion, Economics Minister Lex Delles said: « With this 10-point action plan, our goal is clear: We want to specifically support our start-ups and scale-ups in every phase of their development and at the same time increase the attractiveness of our ecosystem for talents and international investors. »

Finance Minister Gilles Roth summed up: « By facilitating the development and financing of start-ups, we promote the emergence of national and international champions. » In the coming years, the ministries will focus a special focus on the financing of innovative business models, « to promote growth, employment and competitiveness of our economy and at the same time make our country the innovation leader. »