Financial Support

Eligible companies Eligible costs Procedure Documentation



 

The financial supports described below are intended to support Luxembourg companies carrying out an economic activity involving export, in their international expansion efforts.

These aid are regulated by the law of December 4, 2019 on the Office du Ducroire Luxembourg and comply with European State aid regulations, in particular with the Commission Regulation called de minimis (with the actual ceiling of 200,000 EUR per company over a 3 year period). In accordance with this regulation, all entities controlled (on a legal or on a de facto basis) by the same entity or natural person are considered as a single undertaking.

Eligible companies

All Luxembourg companies carrying out an economic activity involving export are eligible, except of the following sectors :

Excluded sectors and activities:

  • Financial (banking, insurance, trustees, chartered accountants and auditors of companies and investment funds) with the exception of Fintech
  • Real estate promotion
  • Culture including art galleries, whose principal purpose is not commercial
  • Tourism
  • Primary production of agricultural products, fishing or any other activity related to the production, processing or marketing of the products listed in annex 1 of the Treaty
  • Extraction of the most polluting fossil fuels, in particular shale gas and coal
  • Interim work
  • NPO – Nonprofit organization
  • EIG – Economic interest group

Conditions of eligibility:

  • Be a Luxembourg company carrying out an economic activity involving export
  • Be in possession of a valid establishment authorization and all other authorizations necessary for the exercise of its activity
  • Exist for at least 3 years (if not, please consult the scheme for young and micro companies “YMC”)
  • Be financially healthy–> i.e. publication of balance sheets, have positive equity and a stable and viable financial situation
  • Employ at least 2 employees (if not, consult the scheme for young and micro companies “YMC”)
  • Represent a substantial added value for the Luxembourg economy

Examples of indicators to measure the added value of the company for the Luxembourg economy:

  • business development: evolution of the total and export turnover and the number of staff
  • potential / perspective of development
  • activity sector
  • business activity in Luxembourg (production, processing, sales, marketing, research and development…)
  • impact on the environment
  • impact on the image of Luxembourg
  • social responsibility
  • impact on the economy (e.g. job creation, use of Luxembourg subcontractors if possible, etc.)
  • visibility of the Luxembourg origin of the company

Scheme for young and micro companies “YMC”

The annual ceiling for all types of aid for YMC is 10,000 EUR.

Conditions of eligibility:

  • Be a Luxembourg company carrying out an economic activity involving export
  • Be in possession of all necessary authorizations necessary for the exercise of its activity
  • Product/service must be ready to be marketed
  • In the absence of a balance sheet, a detailed business plan must be provided for the following 3 years
  • No strict criterion regarding the number of employees
  • Represent added value for the Luxembourg economy (see examples of indicators)

Exit criteria for the YMC scheme:

Every year, or at the earliest after the 3rd year of existence, the YMC can be re-evaluated on the basis of a detailed report provided by the company, to exit the YMC scheme.

Conditions:

  • Be financially healthy -> i.e. publication of balance sheets, positive equity, financially viable situation
  • Have a workforce of at least 2 employees
  • Display growth potential (example: evolution of turnover)
  • Representing substantial added value for the Luxembourg economy (see examples of indicators)

Eligible costs

All types of costs incurred by the exporting company to promote their products and services abroad may be eligible, except for the following costs:

Non-eligible costs:

  • Accommodation
  • Travel
  • Catering
  • Internal costs (e.g. staff costs)
  • Supplies
  • Printing
  • Re billing between affiliated companies
  • All projects already subsidised by another national and international institution
  • Promotional gadgets
  • Design and translation costs related to product packaging and labeling
  • Handbook
  • Website design and e-commerce
  • Training
  • Membership fees
  • Commission

Invoices must addressed and paid by the Luxembourg claiming company.

Type of support:

  • Flyers
  • Brochures
  • Film/video
  • Film/video in augmented reality

Maximum support: 50%

Annual ceiling: €10,000

Type of support:

  • Flyers
  • Brochures
  • Web page and e-commerce

Eligible languages: all languages are eligible, except Luxembourgish

Maximum support: 50%

Annual ceiling: €10,000

The opening of a pop-up showroom can, under certain conditions, be assimilated to a fair participation.

Conditions:

Fair / show / seminar / conference :

  • Physical attendance or virtual participation as an exhibitor
  • Registration in the official exhibitor’s list

Pop-up showroom:

  • Target: foreign professionals (no retail business)
  • Time period limited to 6 months
  • Displayed products/services are created in Luxembourg or represent an added value for the Luxembourg economy.

Eligible expenses:

Fair / show / seminar / conference :

  • Space rental (max. 100 sqm)
  • Booth construction and design
  • Registration in the official catalogue of the exhibition
  • Technical basic connections (connection to water and electricity supply)
  • Shipping of exhibition material not intended for sale and send back
  • Rental of multimedia equipment (max €1,000)
  • Insurance
  • Cleaning charges
  • 2 exhibitor passes for physical attendance
  • 20 visitor entry tickets
  • 2 professional hosts/hostesses

Pop-up showroom:

  • Rental of premises for max. 6 months
  • Office equipment (furniture f.ex.)
  • Administrative costs excluding staff costs in a the broad sense

Maximum support:

  • 50% of the eligible costs for the first three participations/openings
  • 25% of eligible costs from the fourth participation/opening
  • 10% of eligible costs from the eleventh participation/opening
  • No support after the twentieth participation/opening

Annual ceiling: €40,000

Eligible types of support:

  • Specialized magazine
  • Catalogs
  • Drafting of press release
  • Sponsorship

Maximum support: 25%

Annual ceiling: €10,000

The purpose of the Copel aid is to support Luxembourg companies in their international prospecting efforts.

Are considered by Copel as eligible, the digital tools used by Luxembourg exporting companies to develop direct and personalised relationships with their customers and prospects, in order to promote their products and services internationally.

In this context, “Marketing Automation” must fulfill a function of digital promotional support promoting Luxembourg exports via lead generation, as part of a marketing campaign or an international project.

Eligible expenses :

– Digital marketing consultancy with a ceiling of 10,000 EUR/year, ie fees for studies and consulting services to define or improve a digital marketing strategy, including SEO advice.

– Prospect database in the form of subscriptions or direct purchases. Examples: prospect data meeting GDPR requirements, professional services offered by social media (e.g. LinkedIn or others).

– Marketing automation tool allowing the simultaneous management of several online marketing campaigns, the increase in the percentage of customer retention thanks to an individualized contact follow-up, the quality control of databases used, in order to reach more prospects, the measurement of the performance and effectiveness of campaigns using specific dashboards and statistical reports.

– Online advertising, implementation of marketing campaigns and optimisation of the online presence. Examples: Google Adwords, online banners, press distribution services, search engine optimization (SEO), influencers, social media ads, landing page for a specific marketing campaign abroad.

Maximum support : 50%

Annual ceiling : €20,000

 

We also invite you to consult The all-in-one digital marketing guide for Luxembourg businesses to go international.

Eligible expenses:

Consulting services (legal, fiscal, mandatory standards, etc.) provided by a third party for the launch of a new product or service, or an existing product on a new market.

Maximum support: 50%

Annual ceiling: €10,000

Eligible expenses:

Studies carried out by a third party for the launch of a new product or service, or an existing product on a new market.

Maximum support: 50%

Annual ceiling: €10,000

Eligible expenses:

Registration of brands or patents and certification deposits mandatory for the marketing of a product abroad, including translations.

Maximum support: 50%

Annual ceiling: €10,000

 

We invite you to consult the website of the ” Institut de la Propriété Intellectuelle Luxembourg ” (IPIL).

It has to be a prospecting entity opened by a Luxembourg company in order to develop the activity on a new market.

Condition:

Luxembourg company employing between 10 to 100 people.

Eligible expenses:

  • Office rent and rental charges
  • Furniture
  • Consumables (office equipment, telecommunications, etc.)
  • IT devices (max. €5,000/year)
  • Administrative, legal and fiscal costs, including translations of administrative documents directly and exclusively linked to the opening of the prospecting entity

Non-eligible expenses:

  • Staff costs
  • Taxes and levies

Intervention: first year of operation; maximum 2 per year

Maximum support: 50%

Annual ceiling: €30,000

Unlike other financial supports granted by the ODL, this aid must be fully reimbursed in case the company wins the tender.

Condition:

The country must be new and the amount of the tender shall not exceed 25% of the company’s annual turnover.

Eligible expenses:

  • Travel expenses and accommodation costs to the concerned country
  • Costs for internal or external studies, as long as these studies have a direct link with the participation in the concerned call for tender
  • Fees for the purchase of the tender specifications

Intervention: maximum 2 per year

Maximum support: 50%

Annual ceiling: €30,000

Procedure

Submission of an application

The request must be submitted before expenses are incurred (before signing the offer of the service provider)  or in the case of a participation at a fair/seminar/conference abroad, before the starting date of the event.

The online form in French, German and English is available on the TPM MyGuichet.lu.

https://guichet.public.lu/en/entreprises/financement-aides/regime-pme/aide-exportation-frais-promotion-exposition/aide-exportation.html

To access the MyGuichet.lu portal, the user needs:

  • a LuxTrust product or an eID (Luxembourg electronic identity card).
  • a national identification number (13 digit number)
  • a legal electronic signature
  • a certificate of authentification which allows to access to the State online aid applications
  • a professional space in MyGuichet.lu

Complete the application according to the instructions, control data and confirm the seizure, then sign the application, add the attachments and transmit it to ODL.

Contact: Guichet.lu Helpdesk; phone: (+ 352) 247-82000

If you apply for the first time, please add the following documents to your application:

For the following applications: a recent balance sheet and any statutory changes.

Other documents may be required as for example: a copy of the cost estimate, of the registration form for a trade fair, etc.

Response time

The Committee meets once a month to analyze the requests.

The decision is communicated via regular mail.

In case of approval, a letter of commitment with a validity of 6 months is issued. This validity may be extended upon receipt of a written request.

The incomplete file will be closed after 90 days.

Refund

The reimbursement is made exclusively on the basis of the copies of the settled invoices and receipts of payment transmitted to ODL by email or by post within the validity of the letter of commitment.

A grant letter will be sent as a confirmation of the payment.

Appeal

A company might challenge a decision of ODL by introducing a legal appeal before the administrative court. This recourse must take the form of a petition signed by a court lawyer within 3 months from the notification of the decision.

Within the same period of time, the company might challenge the decision of ODL by introducing a non-contentious appeal of the decision of ODL. To do so, the company has to send a registered letter to ODL in which it has to present the facts and its claims and add all documents it deems useful.

In the event of a non-contentious appeal, the time limit for introducing a legal appeal before the administrative court is suspended. If within three months from the introduction of the non-contentious appeal, a new decision is made or if no decision is made, a new period of three months to introduce the legal appeal before the administrative court begins to run.

The company might also introduce a complaint with the Mediator – Ombudsman. This complaint does not interrupt or suspend the legal deadlines for non-contentious and legal appeals. The mediator cannot change the decision taken, but will intervene with ODL to find an amicable agreement.

Documentation