The SME Package, in plain numbers
Luxembourg will pay most of the bill for a digital or AI project. Here is what the programme actually covers, where the ceilings sit, and the part most companies get wrong.
Every few weeks someone tells us they did not apply because they assumed their project was too small, or that the paperwork would cost more than the grant. Both assumptions are usually wrong, and the second one is our job anyway.
What is covered
The SME Digital and SME AI packages, administered through Luxinnovation, cover 70% of eligible investment for a qualifying Luxembourg SME. Eligible cost runs from 3,000 to 25,000 euros excluding VAT, and the grant is capped at 25,000 euros per project.
In practice that means a 20,000 euro website or web application can cost you 6,000. It also means a 40,000 euro project is not disqualified: the first 25,000 of it still qualifies, and the rest is simply unfunded.
The part most companies get wrong
Marketing is not separately state-funded, which is where the confusion starts. It can, however, be co-funded inside a Digital package when it accompanies a website or web application: up to 15% of the eligible cost as marketing services, and up to another 15% as advertising spend, both at the same 70% rate.
So a campaign attached to a build is partly funded. The identical campaign on its own is not. That single distinction changes how a project is worth structuring, and it is the reason we ask what else you are planning before we scope anything.
Digital or AI
The two packages are separate programmes with the same headline rate. Digital covers the systems your customers and staff touch: sites, shops, platforms, the tooling around them. AI covers the analysis and the build of an AI capability, which is why a discovery workshop and the concept it produces can be funded before a single line of the system is written.
What it actually takes
- A quote with a scope defined well enough to be assessed
- An application filed before the work starts, which is the deadline people miss
- A company that meets the SME definition and is up to date on its obligations
We prepare and file the application as part of the project. You sign it. Approval is the agency's decision and never ours, and we will tell you plainly when we think a project is a weak candidate rather than let you find out after the fact.
Figures here follow the programme terms as we currently apply them. Funding rules change; confirm the current conditions with Luxinnovation, or ask us and we will check before you commit.