AI grants in Luxembourg: how to get 70% of your AI project funded
Luxembourg SMEs can get 70% of an AI project paid by the Ministry of the Economy through the SME Package AI. Projects must cost between €3,000 and €25,000 (excl. VAT), so the grant is worth up to €17,500. Bigger programmes can use Fit 4 AI, which covers 50% of an AI diagnostic for SMEs. Apply before you sign anything: Fit 4 AI requires it, and for the SME Package AI the Ministry decides before work starts.
Last checked against official sources: 7 October 2026What AI grants exist in Luxembourg? SME Package AI and Fit 4 AI at a glance
| SME Package AI | Fit 4 AI | |
|---|---|---|
| Grant rate | 70% of eligible costs | 50% for SMEs, 30% for large companies |
| Project size | €3,000 – €25,000 excl. VAT | €10,000 – €50,000 (small), €10,000 – €100,000 (medium), €50,000 – €200,000 (large) |
| Maximum grant | €17,500 | Depends on company size |
| What it funds | A simple, concrete AI project: assessment plus implementation | An in-depth AI diagnostic and roadmap (up to 6 months) |
| Who you go through | House of Entrepreneurship (Chamber of Commerce), or eHandwierk for craft businesses | Luxinnovation, with an approved Fit 4 AI consultant |
| Best for | Most small businesses starting with AI | Larger SMEs planning a company-wide AI programme |
Who qualifies for the SME Package AI?
Your company qualifies if it:
- is an SME (staff, turnover and balance-sheet limits under EU rules),
- has its registered office in Luxembourg, and
- holds a business permit from the Ministry of the Economy.
The package is meant for simple, easy-to-implement AI projects that improve how the business runs: for example automating document handling, answering customer emails, drafting quotes, or giving staff an assistant that knows your internal documents. Only the service part counts (analysis, development, integration, set-up and training). Hardware and stand-alone software licences are not covered.
How do I apply for the SME Package AI? Step by step
- Book a pre-analysis meeting with the House of Entrepreneurship (or eHandwierk if you are a craft business).
- Choose your provider and the scope. The provider writes a detailed quote with deliverables, milestones and itemised costs.
- Your adviser files the application with the Ministry of the Economy.
- The Ministry reviews and decides. Do not sign or start before this decision.
- The provider delivers the project.
- Evaluation meeting with your adviser, then the file is closed.
- You pay the provider and get 70% reimbursed by the Ministry.
Example: a €20,000 project (excl. VAT) is reimbursed €14,000. Your net cost is €6,000.
How much cash does an SME need for the SME Package AI?
Assuming all costs are eligible. You pay the provider's full invoice, including VAT, first. The 70% aid is reimbursed after the project is evaluated.
| Eligible cost excl. VAT | You pay first (incl. 17% VAT) | Aid reimbursed later | Net cost excl. VAT |
|---|---|---|---|
| €3,000 | €3,510 | €2,100 | €900 |
| €10,000 | €11,700 | €7,000 | €3,000 |
| €25,000 | €29,250 | €17,500 | €7,500 |
Illustrative. VAT-registered businesses normally recover the VAT. Ineligible costs are not reimbursed.
What is Fit 4 AI and how much does it fund?
Fit 4 AI, run by Luxinnovation, funds an in-depth analysis of where AI can help your company. An approved consultant spends up to six months on a structured report: your current situation and data, the state of the art in your sector, the use cases worth doing, compliance (GDPR and the EU AI Act), costs and expected return, and an implementation roadmap.
- SMEs get 50% of eligible costs; large companies get 30%.
- The consultant must be approved for Fit 4 AI, and the consultant's day rate is capped at €1,300 excl. VAT.
- You register the consultant's quote with Luxinnovation, receive a compliance certificate, then apply through MyGuichet.lu, all before the analysis starts.
- The grant is paid after the diagnostic, on presentation of invoices, proof of payment and the final report.
Which grant should you choose?
- You want one AI improvement live in a few months (fewer manual tasks, faster replies, quicker quotes): SME Package AI.
- You want a full AI strategy for a larger company with several departments and a budget above €25,000: Fit 4 AI first, then fund the projects it recommends.
- You are not sure: start with an SME Package AI project on your most painful process. It is faster, the grant rate is higher, and you learn what AI really does in your business.
What mistakes cost companies the AI grant?
- Signing or starting before approval. Any commitment before the Ministry's decision can make the costs ineligible.
- A vague quote. One-page quotes without deliverables, milestones and itemised costs get sent back, which adds weeks.
- Buying software instead of a service. Licences and hardware alone are not eligible.
- Picking a use case nobody will use. The evaluation meeting asks what changed. Choose a process with measurable volume, such as invoices, emails or quotes.
How EOL Ventures helps
EOL Ventures is an AI consultancy in Luxembourg founded by former Amazon operators, with 14 years inside Amazon running logistics and production machine learning. For grant-funded projects we:
- help you pick the process with the best return,
- write the detailed quote and scope the House of Entrepreneurship needs,
- build, connect and deploy the AI solution in your existing tools, and train your team,
- support you through the evaluation meeting and the reimbursement.
Frequently asked questions
How much is the AI grant in Luxembourg?
The SME Package AI covers 70% of eligible costs for AI projects between €3,000 and €25,000 excluding VAT, so up to €17,500. Fit 4 AI covers 50% of an AI diagnostic for SMEs and 30% for large companies.
Who can apply for the SME Package AI?
SMEs with a registered office in Luxembourg and a business permit from the Ministry of the Economy. The application goes through the House of Entrepreneurship, or eHandwierk for craft businesses.
Can I start the project before the grant is approved?
No. You should not sign the quote or start work before the Ministry of the Economy has approved the application, otherwise the costs may not be eligible.
Is the grant paid upfront?
No. You pay the provider, then the Ministry reimburses 70% of the eligible costs after the project and the evaluation meeting.
Does the SME Package AI pay for ChatGPT or other software licences?
Stand-alone licences and hardware are not eligible. The grant covers services such as analysis, development, integration, set-up and training.
What is the difference between SME Package AI and Fit 4 AI?
SME Package AI funds 70% of a simple, concrete AI project up to €25,000. Fit 4 AI funds 50% of an in-depth AI diagnostic and roadmap by an approved consultant, for larger budgets.
Can I combine the SME Package AI with other SME Packages?
There are separate SME Packages for Digital and Cybersecurity. Ask your House of Entrepreneurship adviser at the pre-analysis meeting how they can be combined for your company.
Check your project against the grant
Tell us which process eats the most time in your business. We will tell you in one call whether it fits the SME Package AI and what it would cost after the 70% grant.
Book a free call →Prefer email? team@eol.ventures