The year 2026 marks a historic turning point for the Luxembourg entrepreneurial ecosystem. Between the lightning-fast acceleration enabled by Artificial Intelligence and an unprecedented political will to digitize the economy, the barriers to entry for launching an IT project have never been so low.
Today, an entrepreneur can structure a financial plan that combines several government grants to secure up to €29,500 in funding, which often covers the entire cost of an initial technology development project. And an established small or medium-sized enterprise (SME) can receive up to €17,500 in grants for a €25,000 digital project, representing 70% of the funding.
This practical guide offers decision-makers and creators visibility into available aid, eligibility criteria, and how to apply. Next, we explain how Technology Partner goes beyond IT development to help you transform your idea into concrete business success.
SME Packages: Your Innovation Engine in 2026
The SME Packages program, supported by the Ministry of the Economy, is the flagship initiative for SME digitalization in 2026. It is calibrated to include disruptive technologies such as Artificial Intelligence and RPA (Robotic Process Automation).
Eligibility of Businesses for SME Packages
The company must meet strict but accessible criteria:
- Size: Fewer than 250 employees, annual turnover ≤ €50 million or total assets ≤ €43 million.
- Location and authorization the company must hold a valid establishment permit in Luxembourg and carry out a real economic activity there.
- Financial Health the company must not be in financial difficulty (according to European state aid criteria).
- Excluded sectors: Certain sectors such as agriculture, fishing, or activities related to the sale of alcohol/tobacco are excluded.
Project and Investment Eligibility
Investment must be part of a transformation process:
- Project Nature The project must aim to improve digital maturity (optimization of customer management, automation of production, implementation of innovative service platforms).
- Covered shutters Digital, Artificial Intelligence, Service, Cybersecurity, Sustainability. Technology Partner covers the first three areas, our strategic partner covers the fourth.
- Covered expenses: Eligible costs primarily include services provided by specialized external providers such as Technology Partner. This covers business analysis, solution design, technical development, and implementation.
- Amount of aid The government covers 70 % of the project, with a project cap set at 25,000 € excluding VAT. Direct assistance can therefore amount to up to 17,500 €. The minimum investment amount is set at 3,000 €.
- Important: Assistance must be requested before the start of the work (signing the quote).
How to ask for «SME Packages» help»
The House of Entrepreneurship and the Chamber of Trades are the points of contact for companies interested in the program (depending on the nature of the company's business that submits the application). They manage the relationship with companies and service providers, oversee the program overall, and verify applications.
The company must pre-finance the service. The process is as follows:
- You submit your file with 2 quotes on MyGuichet and await the ministerial decision of validation (6 to 8 weeks, max 3 months). Attention: You should only sign and accept the quote after you have obtained approval!
- Your IT partner provides the service (MVP, RPA, etc.).
- You pay the total invoice amount (100 % of the pre-tax amount plus VAT) to the service provider.
- You submit the proof of payment and the final report on the online platform.
- The government will reimburse you 70 % of the amount excluding tax.
The state reimbursement period after submitting your proof of payment generally ranges between 4 and 8 weeks.
👉 Full details and forms on Guichet.lu – SME Packages
2. First-time creation support: vital assistance for new creators
For those who choose to make their idea their main activity, the Luxembourg state offers aid for first-time creators. Unlike the SME Package which finances the «product,» this aid supports the «entrepreneur» and not a specific development project.
The total amount is €12,000, paid in 6 monthly installments of €2,000.
Main eligibility requirements:
- The company must be newly created and have held an establishment permit for a maximum of 6 months. ;
- You, as an entrepreneur, or any potential business partners, must not have any other sources of income, must not have held a residence permit in the past 10 years, and must not hold more than 25 % of shares in another company in Luxembourg or abroad; ;
- The leader must have business management training that is organized or recognized by the competent professional chamber; ;
- The company has its own premises that are not used for residential purposes.
👉 Detailed conditions on Guichet.lu - Start-up aid
3. Financial Engineering: The Strategic Accumulation of €29,500
For a new entrepreneur eligible for both schemes (SME Package + first-time creation), 2026 offers an opportunity for almost full financing.
Example calculation for an MVP development project with a Technology Partner:
- Project Cost (MVP Pack): ~€25,000 excluding tax.
- SME Package Assistance (70 %): + €17,500 paid to the company.
- Immediate balance due: 7 500 €.
- First-creation assistance for 6 months: + €12,000 in available cash.
- Net balance: After payment of the remaining balance, the contractor still has a bonus of €4,500 for their communication, legal fees, or cloud hosting.
This financial arrangement allows for the launch of a high-quality technological product (MVP) without dipping into personal savings, thereby reducing entrepreneurial risk to an all-time low.
4. Luxinnovation: Driving High-Tech Projects
For companies with more advanced R&D ambitions or disruptive innovation projects, Luxinnovation offers support for more substantial state aid.
Here are the main aids to innovation:
- R&D Project Assistance: Intended for projects involving technological uncertainty, this grant can cover up to 80 % of costs for small businesses (developers' salaries, equipment, and contract research).
- Process and organization innovation support ideal for implementing complex software solutions that profoundly change the structure of the company. The grant rate generally ranges from 15 % to 50 %.
- Fit 4 Digital: diagnostic program followed by implementation support, often complementary to SME Packages for larger digital transformations.
- Support for innovative young businesses (start-ups): For companies less than 5 years old, this aid can reach €800,000 in the form of grants, provided that they demonstrate a highly innovative nature and international growth potential.
Luxinnovation acts as a facilitator: they help you structure your application so that it meets the criteria of the Directorate of Research and Innovation of the Ministry of the Economy.
👉 Explore Luxinnovation's programs
Why is Technology Partner your strategic ally?
Securing funding is one thing; successfully completing your project is another. While most «IT companies» are content with executing a specification, Technology Partner distinguishes itself with an approach focused on creating business value.
Our «Value-First» Approach»
We start from a simple principle: technical expertise should not be the criterion on which you choose your technology partner.
What matters is the value unlocked for your business:
- The economic value generated by the synergy between human development and AI, exploiting AI's potential while mastering its pitfalls.
- The business value inherent to the final product and the competitive advantage it provides you.
- Enterprise value that you, as a client, will be able to achieve through it.
Our distinct advantage: our CEO's direct involvement
As serial entrepreneurs, we understand your challenges. That's why our Managing Partner, Julien Gras, gets personally involved in every new project. He doesn't act as a mere supervisor of the technical team, but as a partner who challenges your ideas, suggests strategic pivots, and pushes technological innovation to optimize your business model.
Our methodology in 5 key steps
- Understand: Dive into your project and its business model.
- Challenger : We question your certainties to avoid developing unnecessary features.
- Optimizer Co-creation of an innovative and streamlined roadmap.
- Develop: Agile execution with mastered Human-AI synergy.
- To accompany Continuous support in innovation, even after launch.
Our solutions: from idea to performance
We have designed offers that align perfectly with the budgets and criteria of Luxembourgish subsidies.
A. The MVP (Minimum Viable Product) Package
Transform your idea into a functional product in 90 days.
- Including: Concept design and optimization workshops, UI/UX design, agile development, and launch within 90 days.
- Objective: ensure a rapid time-to-market to quickly launch and test your project with a controlled budget, largely covered by subsidies.
B. Software Factory
For companies and entrepreneurs with more advanced, more developed projects, our Software Factory solution is ideal.
Here, we ensure the agile and tailor-made development of your large-scale IT project and we support you to contribute to the success and sustainable growth of your solution.
C. Pack RPA (Automation)
Also eligible for the SME Package, this solution allows you to identify and automate your repetitive processes to free your teams from routine tasks and reduce your operational costs thanks to the power of RPA.
In just 30 days, you'll have a complete roadmap to automate processes with the most potential for transformation and added value generation.
Your benefits: rapid reduction of operating costs and freeing up time for high-value-added tasks.
Don't let 2026 slip away
Luxembourg today offers a fertile and unique breeding ground for supporting technological innovation. Financial aid is available, AI is ready, and Technology Partner has the expertise to tie it all together.
The real question is no longer whether you have the means to launch your project, but to ensure you have the partner capable of transforming your ambitions into a profitable reality.
Contact Charline and the Technology Partner team for an initial strategic discussion.
