What types of expenditure are eligible?

To be eligible for co-financing, expenses must meet all of the following criteria (without being exhaustive):

  • be necessary for the realization of the action (economic activity), directly attributable to the latter, resulting directly from its implementation ;
  • be borne by the company, i.e. they represent real expenses actually and effectively incurred by the project owner;
  • be reasonable, justified and in line with the principle of sound financial management, as well as with the usual practices of the project owner, whatever the source of funding. Procurement contracts must comply with normal purchasing practices, provided that the contract is awarded to the bid offering the best value for money, and that any conflict of interest is avoided;
  • be due during the period of implementation of the co-financed project, consistent with the scope and schedule of activities;
  • be identifiable and supported by documentary evidence, in particular determined and recorded in accordance with the usual accounting practices of the productive project owner;
  • comply with applicable tax and social legislation, taking into account the privileges and other benefits granted to the project owner.

Types of eligible expenditure:

  • Expenses used to finance any activitý related to production and sales, such as: 
    • Cost of sales (CPV)
    • Salaries
    • Overheads

    Companies must include an audit of project-related expenses in their project budget. Terms of reference for the audit will be provided by LuxDev.
    Coverage through co-financing: Max 120,000 EUR value of co-financing

  • Investments that enable a strengthening of production capacity, productivity, competitiveness, diversification and quality:
    • infrastructure – creation, rehabilitation, extension.
    • equipment – acquisition, installation and commissioning.
    • intangible assets – acquisition or subscription to databases, software and search algorithms, etc.

    If co-financing is used for acquisitions, they may not be resold within 3 years of the end of the co-financed project.
    Coverage through co-financing: 50% cost coverage, up to a maximum of 30% of the total project budget | Max 120,000 EUR value of co-financing

  • The project owner’s intangible needs (excluding investments) that help guarantee the “proper set-up” of the activity, its competitiveness and its sustainability, in particular:
    • technical and accounting training.
    • consulting and technical assistance:
      • consultancy/industry expertise, market access, pricing strategy, certifications, licenses and standards.
    • development of business plans, financial management, digitization, human resources management and training, development of a results/impact management strategy and plan, etc.
      • management tools, accounting.
      • customer research/prospecting/access to networks.
      • certification fees.
      • costs related to the intellectual property of a product or service owned by the project leader.

    A non-exhaustive list of experts and consultants identified by LuxDev in the various fields mentioned above will be provided to the selected companies.
    Coverage through co-financing: 100% cost coverage, up to a maximum of 20% of the total project budget

LuxDev co-financing up to 70% of total project budget LuxDev co-financing capped at min 50,000 and max 140,000 EUR 

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