SME Package AI in Luxembourg: what to know before building your application
You are considering an artificial intelligence project for your SME and you know a state grant exists. The real question is not "does it exist", but "how do I build the application without losing months or getting the funding refused".
The SME Package AI is the artificial intelligence strand of the SME Packages scheme, managed by the Ministry of the Economy through guichet.lu. It reimburses 70% of the eligible costs of an AI project priced between 3,000 and 25,000 euros excluding VAT (source: guichet.lu, page updated on 11.03.2025). To understand how these grants fit into the overall budget of a project, our breakdown of why private AI matters for a Luxembourg business sets out the value by use case.
This article does not redo the amount calculation: it walks through the process, step by step, so that you arrive at the House of Entrepreneurship with an application that holds up. If your AI project also answers a compliance obligation, you can align it with AI-driven regulatory monitoring, funded by the same scheme.
1. Are you eligible? The criteria to check first
Before any step, check that your company and your project tick the right boxes. An ineligible application is often discovered too late, after time has already been invested.
According to guichet.lu (page updated on 11.03.2025), eligibility for the SME Package AI rests on a few cumulative conditions.
|
Criterion |
Condition |
Recommended action |
|---|---|---|
|
Company status |
Meet the European definition of an SME (headcount, turnover, balance sheet) |
Check your thresholds before any meeting |
|
Luxembourg anchoring |
Registered office in Luxembourg and business permit issued by the Ministry of the Economy |
Have your up-to-date business permit ready |
|
Nature of the project |
Deployment of an artificial intelligence solution |
Frame a concrete AI use case, not a vague intention |
|
Spending range |
Project priced between 3,000 and 25,000 euros excluding VAT |
Calibrate the quote within this range |
|
Provider |
Project delivered by an approved provider in Luxembourg |
Select a recognised provider from the start |
The most structuring point: your AI project must be carried out by an approved provider in Luxembourg. This criterion directly shapes your choice of partner. To frame the need upstream, our page on AI business agents helps turn an intention into a fundable project.
💡 Good to know: the 3,000 to 25,000 euros excluding VAT range is strict. A project at 2,500 or at 30,000 euros falls outside the scope of the SME Package AI and must be reorganised to enter the range.
2. What the grant covers and what it does not
The SME Package AI reimburses 70% of the eligible costs of your AI project, that is, the service of deploying the solution (source: guichet.lu, 11.03.2025). The reimbursement happens after the package is put in place, not before.
In plain terms: you commit the spend, the provider delivers the project, then you receive the grant. On a project at 25,000 euros excluding VAT, the calculation gives a maximum grant of 17,500 euros excluding VAT (70% of 25,000). This figure is a calculation based on the published parameters, not a ceiling displayed as such by guichet.lu.
Regarding the detailed list of excluded expenses, the guichet.lu sheet does not publish an exhaustive itemisation. Do not assume any exclusion: have the eligible scope of your project validated directly with the House of Entrepreneurship during the pre-analysis, which remains the official channel for this level of detail.
💡 Good to know: since the reimbursement comes after the spend, the cash flow need is real. You advance 100% of the cost and recover 70% once the project is delivered and assessed.
3. The step-by-step route to build the application
The process follows a precise sequence. Respecting it in order is what separates an accepted application from a delayed one. Here are the milestones described by guichet.lu (page updated on 11.03.2025).
Step 1: the House of Entrepreneurship pre-analysis
Everything starts with a mandatory pre-analysis with the House of Entrepreneurship (or eHandwierk, via the Chamber of Skilled Trades and Crafts, for craft businesses). It is the unavoidable entry point: there your situation is assessed, your priorities are identified, and you are supported for the next steps. Skipping this step means stepping outside the official process.
Step 2: define the package and select the provider
You then frame the content of your AI package and you choose an approved provider, who issues a quote within the 3,000 to 25,000 euros excluding VAT range. This is the moment to turn a need into a concrete scope. At this stage, you can have your sovereign AI project delivered with up to 70 % funding by an approved provider.
Step 3: submit the grant application
The grant application is built with the support of the House of Entrepreneurship, then submitted to the Ministry of the Economy. The filing is done through the official channels (guichet.lu / MyGuichet). This is where the quality of your application is decided.
Step 4: assessment and decision
The ministry reviews the application and issues its decision. As long as your application is not approved, you must not commit the spend if you want to preserve your right to reimbursement.
Step 5: project delivery
Once approval is obtained, the approved provider deploys the AI solution. This is the operational phase, where your use case takes shape. To picture what a structured deployment looks like, the stages of a successful AI transformation give a concrete framework.
Step 6: assessment meeting
At the end of the project, an assessment meeting reviews the satisfaction and the gains observed. This step conditions what follows: it validates that the package has indeed been put in place.
Step 7: reimbursement request
Finally, you receive the grant of 70% of the eligible costs. You have paid the provider, you recover the subsidised share. The loop is closed, provided each previous step has been respected.
4. Real timeline: what to expect
How long does it take to complete an SME Package AI application? The guichet.lu sheet describes the sequence of milestones but does not publish set timeframes in days or weeks. Any precise duration would be a guess, not official data.
What can be said with certainty is the order of things: pre-analysis, then package definition, then filing, then assessment, then delivery, then evaluation, then reimbursement. Count on a review period on the ministry side and plan accordingly.
The most concrete point of vigilance is financial: since the reimbursement comes after the spend, plan for cash flow able to absorb the advance of the full cost before recovering the 70%. For the detail of up-to-date timeframes, the official channel remains the House of Entrepreneurship and guichet.lu.
|
Milestone |
Who |
Point of vigilance |
|---|---|---|
|
Pre-analysis |
House of Entrepreneurship / eHandwierk |
Mandatory, to do first |
|
Application filing |
You + House of Entrepreneurship |
Before any spending commitment |
|
Decision |
Ministry of the Economy |
Wait for the approval |
|
Delivery then reimbursement |
Approved provider, then you |
Cash flow: advance of 100%, return of 70% |
5. The mistakes that delay or block an application
Most applications that stall fail on avoidable mistakes. Knowing them in advance saves you precious time.
Here are the most common traps, inferred from the official sequence described by guichet.lu.
- Skipping the pre-analysis: the House of Entrepreneurship is not an optional formality, it is the mandatory entry point of the process.
- Committing the spend too early: signing or paying before the application is approved jeopardises your right to reimbursement.
- Leaving the range: a project below 3,000 or above 25,000 euros excluding VAT does not fall within the scope of the SME Package AI.
- Choosing a non-approved provider: the project must be delivered by a recognised provider in Luxembourg, otherwise the application does not hold up.
- Confusing the AI strand with the Digital strand: these are two distinct schemes. The right channel is not the same depending on the nature of the project.
- Underestimating cash flow: you advance 100% of the cost and recover 70% later. Plan for this gap.
Once the solution is deployed, the challenge becomes its integration into your daily operations. A use case such as the AI morning briefing for accountants shows how a funded project translates into a concrete gain at the workstation.
6. Building the application: the documents to gather
Which documents should you prepare to file your application? The guichet.lu sheet does not publish, on the page consulted, an exhaustive and fixed list of documents. The items below are the logically expected documents, to be confirmed without fail with the official channel.
- The quote from the approved provider, calibrated within the 3,000 to 25,000 euros excluding VAT range.
- The registration certificates and the business permit of your company.
- A description of the AI project and its scope.
- The items requested during the pre-analysis by the House of Entrepreneurship.
The golden rule: do not treat any list as final without having validated it. The House of Entrepreneurship and MyGuichet provide the up-to-date list of documents during your process. This is precisely the role of the pre-analysis: to frame these expectations. If your project aims for a sovereign and compliant solution, our page on private AI for businesses in Luxembourg sets out the technical options compatible with this type of funding.
💡 Good to know: preparing a clear use case and a precise quote from the pre-analysis onwards speeds up the rest of the process. The more your project is framed upstream, the smoother the assessment.
FAQ: Your questions about the SME Package AI
1. Can the SME Package AI be combined with other grants?
The guichet.lu sheet consulted (updated on 11.03.2025) does not explicitly address the rules on combining with other schemes. Rather than presuming, have the question validated during the pre-analysis with the House of Entrepreneurship, which remains the official channel to confirm any combination of grants applicable to your project.
2. Do I have to advance the full amount?
Yes. The SME Package AI reimburses 70% of the eligible costs after the package is put in place (source: guichet.lu, 11.03.2025). In concrete terms, you first pay the provider in full, then you receive the grant. On a project at 25,000 euros excluding VAT, this represents up to 17,500 euros excluding VAT reimbursed after the fact. Plan your cash flow accordingly.
3. What is the difference between SME Package AI and SME Package Digital?
These are two distinct strands of the SME Packages scheme. The AI strand funds artificial intelligence projects, the Digital strand covers other digital transformation projects. This article deals only with the AI strand. Since the channel and the scope are not the same, check which one matches your project before filing.
4. Who can help me build the application?
Two actors are involved. The House of Entrepreneurship (or eHandwierk for craft businesses) carries out the mandatory pre-analysis and supports you in building the application. The approved provider delivers the AI project itself. A provider who knows this process and the Luxembourg sovereign framework saves you time both on defining the package and on respecting the sequence.
Building your SME Package AI application: the method in brief
The SME Package AI reimburses 70% of an AI project between 3,000 and 25,000 euros excluding VAT, provided you respect the sequence: House of Entrepreneurship pre-analysis, quote from an approved provider, filing, approval, delivery, then reimbursement (source: guichet.lu, 11.03.2025).
The key to an application that succeeds comes down to one sentence: commit nothing before approval, and rely on the right contacts at every step. To place this funding within your overall offer, you can also consult the different private AI plans and anticipate your regulatory monitoring in Luxembourg on the evolutions of the scheme.
Want to know whether your AI project is eligible? A conversation lets you frame your use case, calibrate the quote within the right range and prepare the pre-analysis.
