Luxembourg Minister of Finance Gilles Roth has confirmed in an interview with local media that the jurisdiction is implementing change to carried interest rules and is pushing more resource towards digital finance solutions including AI.
Re-published in the Ministry website, an interview with Paperjam saw Roth state: "I have just announced the implementation of a carried interest regime to attract more fund managers here in Luxembourg. This is a long-standing request from the sector, and it makes sense, especially given what's happening across the Channel and in southern Europe."
Changes to carried interest taxation rules would particularly affect those working in the alternative investment fund management space.
Earlier in 2025, Belgian publication L'Echo sought the opinion of the Belgian Venture Capital & Private Equity Association, which noted: "In Luxembourg, employees of Alternative Investment Fund Managers (AIFM) are taxable on their carried interest income as miscellaneous income (speculative gains) – and not as employment income – at the progressive income tax rates (marginal rate of 45.78%) – no social security contributions apply."
Roth also announced the launch of the Peak Accelerator, a programme focused on supporting startups targeting digital solutions for funds. According to the Paperjam interview, Roth noted Luxembourg's position as a leading European hub for funds, but added "to stay ahead, we must digitize our fund ecosystem from start to finish. The new accelerator will bring together startups, fund managers, and technology providers to co-create the future of fund services. We invite partners to join us as mentors, advisors, and innovation leaders."
The Luxembourg government also intends to host an AI conference in 2026, which is noted alongside the establishment of an AI Experience Center at the Luxembourg House of Financial Technology.
There is a fixed income angle noted to the digital focus also: "The Luxembourg Public Treasury issued its first digital treasury certificate this Monday. The digital treasury certificate offers a major advantage: reducing processing times while offering investors increased security, total transparency, and simplified management. Given the very positive feedback from investors, we will continue to build on this initial experience. The Treasury is already working on issues related to a digital sovereign budget. We are doing this to support innovation and create a benchmark in the eurozone," Roth is quoted.
