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ARTICLE · 07 OCTOBER 2025

ATOZ Insights - October 2025

Atoz Tax Advisers
Atoz Tax Advisers
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Atoz Tax Advisers

Atoz Tax Advisers

Our firm Founded in 2004, ATOZ Tax Advisers is a leading independent tax advisory firm offering a...

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On 4 April 2025, the Luxembourg Government approved draft law No. 8526 ("Draft Law"). This legislative proposal aims to introduce a new fiscal incentive, a tax credit specifically designed to encourage individuals...

LuxembourgTax
Atoz Tax Advisers
Atoz Tax Advisers

Draft law introducing a new startup tax credit for individuals as from 2026

OUR INSIGHTS AT A GLANCE

  • Earlier this year, a legislative proposal introducing a new tax credit to encourage individuals to invest in young innovative companies was presented to Parliament.
  • The draft law forms part of Luxembourg's broader strategy to foster innovation, entrepreneurship, and economic diversification.
  • Strict eligibility conditions for both investors and start-up entities have led to formal objections from the Council of State, which are examined in this article.
  • If adopted before year-end, the start-up tax credit would apply as from the 2026 tax year and could become a key instrument to mobilise private capital and strengthen Luxembourg's start-up ecosystem.

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