Luxembourg
On 8 October 2025, Luxembourg's Minister of Finance presented the 2026 budget, emphasizing growth and social cohesion. The budget includes significant investments in innovation and infrastructure, alongside notable tax measures aimed at enhancing competitiveness and supporting social welfare.
A draft law introduced on 4 April 2025 provides for a tax credit of up to EUR 100,000 for individuals investing in innovative startups. This measure is set to take effect in 2026 and aims to stimulate investments in the startup ecosystem.
A draft law introduced on 24 July 2025 enhances Luxembourg's carried interest regime by providing clearer and more attractive conditions. The new regime is scheduled to enter into force in fiscal year 2026.
On 3 September 2025, the government and social partners agreed on reforms to the pension system. While the legal retirement age remains at 65, early retirement age will gradually increase starting in 2026. Additionally, pension contributions will rise from 24% to 25.5% as of 2026. Draft Law No. 8634, submitted on 10 October 2025, introduces these amendments.
The 2026 budget reflects Luxembourg's commitment to fostering economic growth while ensuring social cohesion. The tax measures are designed to incentivize investments, particularly in startups, and to address the sustainability of the pension system. Citizens and businesses are encouraged to familiarize themselves with these changes to effectively plan for the upcoming fiscal year.
For more detailed information, refer to the original article: 2026 Luxembourg budget announced | Tax measures to come
