Funds management in Luxembourg

Specialised Investment Fund (SIF)

 

Specialised Investment Fund:
dedicated website here

Specialised Investment Fund accessible in Luxembourg for professionnal and well informed investors.

Due to strong growth in investment schemes, Luxembourg has introduced a new vehicle for the well informed investors which is a flexible UCI (Undertaking for collective investment).
This SIF is more regulated than non resident private fund established in foreign jurisdictions, SICAR or Holding 1929, SPF but it is more flexible than common UCI or SICAV.

The SIF can issue shares only to institutional and well-informed investors. The SIF can invest in any type of securities, hedge fund, real estate, funds, shares, buyout,...

The shares are issued to :

It can therefore be used by Private funds, family offices, HNWI, families, pension pooling or hedge funds.
The SIF can invest in asset or any type of financial values : in real estate, hedge fund, Private equity, buyout, infrastructure project, cash, money, forex, funds,...

The CSSF supervises the SIF, its activities and legal documents within a month after having launched the SIF. No approval of a promoter is required. Only a Luxembourg Depositary Bank is required for supervision of assets and safe keeping (but not in charge of nav verification, management report,...).

The director of a SIF-SICAV (established as a company) or the director of a SIF-fund (established as a fund) does not need to meet specific conditions to be approved by CSSF. They must justify their sufficient good reputation and have sufficient professional experience.

The Central Administration must be situated in Luxembourg. There is no specific requirement in the law for approval of the administrator. One Nav per year is required as well as an annual report 6 months after closing. The "substance need" is not required by the law like for UCITS.

The minimum capital is EUR 1.250.000 to be reached within a year. Contributions in kind are possible. The capital duty of EUR 1250 is abolished from 31/12/2008. Subscription tax is due at 1bp / year.

The SIF-Fund

Fiscaly transparent and held in trust by a management company established in Luxembourg.

The SIF-SICAV

Fiscaly non transparent, tax exempt and could enjoy treaty benefit. It can be incorporated as a Private Limited Company, Limited Partenership, Public Limited Company and Cooperative Company set like an Private Limited Company. It is possible to have a single member company.

Direct Income Tax

Regarding the Direct Income Tax, the article 66, paragraph 2 of the said law stipulates that : «without harming the terms of the law dated 21 June 2005 transposing the directive 2003/48/CE in the Luxembourg law concerning the taxation on the saving income paid as insterests, no withholding tax is due on the amounts distributed by such specialized investment funds.
These amounts are tax-exempt for the non-resident taxpayer.» Regarding the taxation on the saving income, the circular RIUE Nr 1 of 29 June 2005 of the tax agent is applicable.

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