Frequently Asked Questions on Investment Funds in Luxembourg

Frequently Asked Questions on Investment Funds in Luxembourg

Updated on Monday 25th March 2019

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Frequently-Asked-Questions-on-Investment-Funds-in-Luxembourg.jpg1. Why choose Luxembourg for investment purposes? 

 
One of the best ways for starting an investment project is by opening a Luxembourg fund, as the jurisdiction is the leading European destination for investment purposes and one of the main countries at a global level on this matter.
 

2. Are foreign investors protected under the local legislation? 

 
The country benefits from a solid economy and an attractive investment legislation, which protects the interests of foreign investors; our team of financial representatives can provide in-depth information on the main rules of law addressed to investment funds
 

3. Which are the main types of funds available in Luxembourg?  

 
Luxembourg offers a wide category of investment funds, that cover all the investment activities that can be performed by investors. From funds set up to protect the wealth of high net worth individuals, such as the SPF in Luxembourg, to investment funds set up to perform specific investment activities, the country offers, amongst other, vehicles such as: 
 
  • specialized investment funds (SIFs) – the SIF in Luxembourg is addressed to institutional and qualified investors, and it can be set up by foreign investors as well;
  • investment company in risk capital (SICAR) – the SICAR in Luxembourg can be set up under numerous legal entities, such as public limited company or partnership limited by shares;
  • undertakings for collective investments (UCIs) – this type of fund can invest in a wide category of assets, as there are no restrictions set out in this sense by the local investment legislation;
  • reserved alternative investment fund (RAIF) – the RAIF is a newer type of fund, that was established under the local law in 2016 and it is addressed to well-informed investors. 
 

4. What is the legislation for opening an investment fund in Luxembourg? 

 
The country offers a complex framework concerning the registration of an investment fund in Luxembourg. Thus, UCIs and UCITS funds in Luxembourg are regulated under the Part I and Part II of the 2002 Law (the Fund Law). Our team of financial specialists can offer in-depth assistance on the regulations prescribed by these rules of law. 
 

5. How can one register a SIF in Luxembourg?  

 
SIFs in Luxembourg are regulated under the 2007 Law (Law of 13th February 2007 relating to specialized investment funds), which became applicable starting with March 2012. Businessmen are invited to contact our team of financial consultants for further details on the legal requirements for setting up a specific type of fund. Our consultants can advice on how to open a SICAV in Luxembourg and may also assist on the taxation system applicable to this vehicle.