Luxembourg Film Tax Credit: ~30% Guide

How Does Luxembourg's Film Tax Credit Work?

Luxembourg offers a film tax credit of approximately 30% on qualifying production expenditure through the Film Fund Luxembourg. As a founding EU member state with a sophisticated financial infrastructure, Luxembourg has developed a streamlined incentive program that appeals to European and international co-productions seeking efficient financing structures.

The incentive operates through a combination of tax certificates and direct support mechanisms administered by the Film Fund, which also provides selective development and production funding for qualifying projects.

Tax Credit Structure

Tax credit rate: Approximately 30% of qualifying Luxembourg production expenditure
Mechanism: Tax certificates issued to Luxembourg-based production entities
Qualifying spend: Goods, services, and salaries sourced from Luxembourg-based companies and residents
Additional support: Selective co-production funding available through the Film Fund

The tax credit is structured as transferable tax certificates, meaning production companies can sell unused certificates to Luxembourg taxpayers, providing immediate liquidity even if the production entity has no Luxembourg tax liability.

What Productions Are Eligible?

Feature films (theatrical and streaming)
Television series and miniseries
Documentaries
Animation projects
European and international co-productions with a Luxembourg co-producer

Productions must engage a Luxembourg-based co-producer or production services company. The Film Fund evaluates projects based on cultural merit, financial viability, and economic benefit to Luxembourg.

Why Productions Choose Luxembourg

European co-production hub. Luxembourg's central location, multilingual population, and extensive network of co-production treaties make it an ideal partner for multi-country European productions.

Financial expertise. As one of Europe's leading financial centers, Luxembourg offers sophisticated production financing structures, experienced entertainment lawyers, and efficient banking services.

Multilingual talent. Luxembourgish, French, German, and English are all widely spoken, providing natural language versatility for international productions.

Compact geography. Luxembourg's small size means minimal travel times between locations, medieval castles, forests, river valleys, and modern European architecture are all within a short drive.

How Do You Apply for the Luxembourg Film Tax Credit?

Engage a Luxembourg-based co-producer or production services company
Submit an application to the Film Fund Luxembourg with project details and budget
Film Fund evaluates cultural merit, financial structure, and economic impact
Upon approval, tax certificates are issued based on qualifying Luxembourg expenditure
Complete production and submit final audited accounts
Tax certificates can be used against Luxembourg tax liability or sold for immediate value