The SME Package: fund your digital project at 70%

A grant most people miss

Luxembourg runs a state aid programme called the SME Package, and a lot of eligible businesses never use it, usually because nobody told them it applied to software. It does. If you are an eligible Luxembourg SME, the state can co-fund 70% of an eligible digital or AI project, on costs between EUR 3,000 and EUR 25,000. You build something real, and a large share of it comes back to you.

The programme was developed by the Ministry of the Economy with Luxinnovation, and the Ministry of the Economy runs it: it decides on the aid and reimburses the 70% after delivery. The pre-analysis happens with the House of Entrepreneurship (Chamber of Commerce) or eHandwierk (Chamber of Skilled Trades). It is a serious, mainstream programme, not a fringe scheme.

What it can fund

The scope is broad enough to cover most of what a small business actually needs built. In practice that means a new website or e-commerce site, an automation or AI agent that removes manual work, a CRM or tooling setup, or a digital growth project. If it is a genuine digital investment in your business, it is usually in scope.

How it works, step by step

The mechanism is simpler than it sounds.

• Scope the project. Decide what you want to build and what it should do.
• Get a quote. You need a clear quote from a provider, with a defined scope

and price inside the eligible band.

• Apply before you start. The application goes in before the work begins.

This is the step people get wrong, so it matters.

• Build it. Once approved, the work gets done and delivered.
• Get reimbursed. After delivery, the state reimburses 70% of the eligible

cost.

The key timing rule: you apply first, build second, and the money comes after delivery. Plan your cash flow accordingly.

The honest caveats

I will not oversell this. Funding is subject to eligibility and Ministry approval. Not every business qualifies, not every cost is eligible, and approval is never automatic. The programme has its own rules on company size, activity, and what counts as an eligible expense, and the final decision sits with the Ministry, not with your provider.

So treat the 70% as a strong possibility to design around, not a guarantee to bank on. The right move is to scope a project that fits the programme from the start, rather than building something and hoping it qualifies later.

How we help

This is where a provider who knows the programme earns their keep. We scope the work to fit the eligible band, write a quote the application can use, and build the thing properly once it is approved. If you want the full breakdown, the mechanics, the categories, and an estimate of what you could claim, the SME Package page on this site lays it all out, with a simulator you can play with.

Start there, then tell us what you want to build.