In an interview with Paperjam.lu, the Luxembourg Ministry of Finance outlined competitiveness and digital-finance initiatives for the financial centre, including the announced introduction of a carried interest regime intended to attract more fund managers and the launch of the Peak Accelerator to support startups developing digital solutions for investment funds. The ministry also pointed to the Luxembourg Treasury’s first digital treasury certificate issuance as a step in expanding digital capital markets instruments. Supporting measures referenced include a modernised expatriate tax regime under which up to EUR 400,000 of annual salary can benefit from a 50% tax exemption, an exemption from subscription tax for exchange-traded fund vehicles, and a 1% reduction in the corporate income tax rate. The interview also cited legislative updates including a blockchain law and the transposition of the Markets in Crypto-Assets Directive (MiCA) to frame cryptoassets, as well as draft bills to create a tax credit for business angels and ongoing work on an employee stock options regime with “very competitive” capital gains taxation. On EU policy, the minister backed supervisory convergence but rejected the premise that it requires a single supervisor, arguing instead for reducing Brussels bureaucracy and advancing common frameworks for insolvency, resolution and securitisation. Next steps flagged in the interview include inviting industry partners to join the Peak Accelerator as mentors and advisers, holding a flagship conference on artificial intelligence and fintech in 2026, and building on the digital treasury certificate pilot, with the Treasury already working on questions around a “digital sovereign budget”.
Ministry of Finance (Luxembourg) 2025-06-18
Luxembourg Ministry of Finance announces carried interest regime and Peak Accelerator to support digital innovation in investment funds
The Luxembourg Ministry of Finance announced initiatives to boost the financial centre's competitiveness, such as a carried interest regime, the Peak Accelerator for digital fund solutions, a modernised expatriate tax regime, and a subscription tax exemption for ETFs. Legislative updates include a blockchain law, the Markets in Crypto-Assets Directive, and draft bills for tax credits and stock options, with the minister supporting EU supervisory convergence without a single supervisor.