How to Get 70% AI Funding in Luxembourg (2026 Guide)
A practical walkthrough of Fit4Digital, Fit4Innovation and the SME Packages programmes — how to secure up to €25,000 in state co-funding for your AI project.
Eligibility at a glance
Funding programmes
Fit4Digital
Up to €5,000
Pays for a digital diagnostic and strategy roadmap delivered by an approved consultant. Ideal first step to define where AI fits in your business.
Typical duration: 4-6 weeks
Fit4Innovation
Up to €25,000
Pays for hands-on implementation: building the AI system, integrating it with your tools, training your team, and measuring results.
Typical duration: 8-12 weeks
SME Packages / Invest Luxembourg
50-70% co-funding
Co-financing for substantial digital transformation projects, typically €50K-€200K, aimed at SMEs investing in innovation and productivity.
Typical duration: 3-12 months
RDI Tax Credit
Up to 35% of R&D costs
A tax credit on qualifying research, development and innovation expenses. Useful for companies building proprietary AI systems over multiple years.
Typical duration: Claimed annually
Application timeline
- 1
Engage a consultant
Work with a Luxinnovation-recognised consultant (like 20 More) to define scope and eligibility.
- 2
Eligibility check
Confirm your company meets SME criteria: Luxembourg-registered, <250 employees, ≤€50M turnover.
- 3
Scope and quote
Draft project scope, deliverables, timeline, and a detailed quote aligned with funding programme rules.
- 4
Submit via Luxinnovation
Upload the full file through the Luxinnovation / MyGuichet portal before starting any work.
- 5
Approval (4-8 weeks)
Receive formal approval from Luxinnovation. Only after approval may the project start.
- 6
Execute and claim reimbursement
Deliver the project, document results, and submit the final report to receive reimbursement.
Common mistakes that get applications rejected
- Started the project (signed contracts, paid invoices) before receiving formal approval
- Missing or inconsistent Luxembourg tax registration and RCS documentation
- Vague project scope without measurable deliverables or KPIs
- Submitted a single vendor quote without comparative quotes or sole-source justification
- No clear ROI justification — Luxinnovation wants to see productivity, revenue or compliance impact
- Treating the application like a generic tool purchase (e.g. "we want to buy ChatGPT licenses")
- Weak alignment between the quoted services and the stated business problem
Real-world use cases
Real estate agency
AI chatbot for property enquiries
€3,500
Funded via Fit4Digital
Multilingual chatbot on the website to qualify leads, answer property questions, and hand off to agents only when the buyer is serious.
Accounting firm
Invoice and receipt automation
€18,000
Funded via Fit4Innovation
AI pipeline that extracts data from client invoices, validates VAT, and posts entries directly into BOB / Sage — saving 40 hours/month.
Retail SME
Predictive inventory AI
60% co-funded
Funded via SME Packages
Forecasting model tied to POS data that recommends reorder quantities by SKU and store, reducing stockouts by 28% and overstock by 17%.
Frequently asked questions
What is the difference between Fit4Digital and Fit4Innovation?+
Fit4Digital funds the diagnostic and strategy phase (up to €5,000) to help you define your digital roadmap. Fit4Innovation funds the implementation phase (up to €25,000) once you have a clear scope. Most SMEs start with Fit4Digital and progress to Fit4Innovation.
How long does approval take?+
Luxinnovation typically approves eligible applications within 4 to 8 weeks of submission. Complex projects or incomplete applications may take longer. You must not start the project before receiving formal approval.
Can 20 More apply on our behalf?+
We cannot submit the application as the applicant (the SME must be the applicant), but we prepare the full technical file, scope document, quote, and ROI justification. Most clients only sign and submit. We also handle follow-up questions from Luxinnovation.
What AI projects qualify?+
Projects that demonstrably improve productivity, compliance, or customer experience typically qualify: document automation, AI chatbots, predictive analytics, invoice processing, RAG systems for internal knowledge, and process automation. Generic tool purchases (e.g. buying a ChatGPT subscription) do not qualify.
Do we need multiple quotes?+
For projects above €10,000, Luxinnovation generally expects comparative quotes or a clear justification for sole-sourcing. We prepare a quote that meets their format requirements and, when needed, help you document why a specific vendor is the right choice.
Can we combine programmes?+
Yes. Many SMEs use Fit4Digital for strategy, then Fit4Innovation for implementation, then the RDI Tax Credit for ongoing R&D. You cannot, however, double-fund the same expense from two programmes.
Book a Free 30-min Funding Review
We'll assess your eligibility, estimate the funding you can claim, and outline the fastest path to approval — at no cost.
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