The Minister of the Economy and the Minister of Finance can grant financial aid to small and medium-sized enterprises (SMEs) for miscellaneous investments whose purpose is to promote the modernisation and the competitiveness of the Luxembourgish economy.
Who is concerned
This aid is intended for small and medium-sized enterprises (SME) holding a business permit granted by the General Directorate for Small and Medium-Sized Enterprises (Direction générale des Classes moyennes) in accordance with the general terms and conditions applying to aid for SMEs.
Eligible costs would be investments in tangible assets such as the modernisation of the equipment/machinery and which are not eligible under the "investment aid" measures for SMEs.
In order to receive aid for miscellaneous investments, businesses must observe and fulfil the general terms and conditions applicable to all aid for SMEs.
How to proceed
Submitting the application
The Ministry of the Economy makes available a sample application template for aid for the project in question.
The completed application and accompanying documents must be dated and signed by a person authorised to sign on behalf of the company and must be submitted before work starts on the project to the Minister of the Economy by post or email. In the event of a submission by post, the following must be indicated on the envelope:
Ministère de l'Economie
Demande d'aides d'Etat
Applications for aid must include the following information and documents:
- the name and size of the business (any document deemed necessary may be requested for the determination of the size of the business);
- a description of the project, including its start and end dates;
- the location of the project;
- a list of costs of the project;
- the form and the amount of financial aid required for the investment project;
- a declaration concerning "de minimis" aid received in the past;
- any other relevant information which would help the ministers in charge to understand the qualities or specificities of the project or programme and its incentive effect (invoices, proofs of payment, bank statements).
The business must grant the Minister of the Economy and the Minister of Finance the authority to verify with the Luxembourg Inland Revenue, the Registration Duties, Estates and VAT Authority and the Joint Social Security Centre that the business has not evaded its tax and social obligations. If not, the business must attach the certificates issued by these administrations providing proof that all tax and social charges have been duly paid.
Maximum amount of financial aid
The amount of aid cannot exceed:
- 20 % of eligible costs for small enterprises;
- 10 % of eligible costs for medium-sized enterprises.
The maximum amount of aid respecting the incentive effect will be in accordance with the "de minimis" regulation No 1407/2013. The maximum amount of aid for applications submitted after the beginning of the works, i.e. without incentive effect, is EUR 20,000 for small enterprises and EUR 10,000 for medium-sized enterprises. Requests for financial aid for works already undertaken must be submitted at the latest one year after the payment of the works at the latest.
For any investment project, the amount of aid may not be less than EUR 1,000.
Payment of aid
The aid takes the form of a capital subsidy.
For applications already submitted, the payment of financial aid must be requested, on pain of ineligibility, within a period of 5 years from the date of payment of the expense for which aid is requested. The beneficiary of the aid can apply for an extension of this deadline on written request to the Minister of the Economy.