RAIF Table

 RAIF
Practical useHedge funds, private equity funds, VC funds, real estate funds, infrastructure funds, microfinance funds, socially responsible funds, etc.
Applicable legislationLaw of 23 July 2016 ("RAIF Law")
Eligible investorsWell-informed investors.
Eligible assetsUnrestricted, unless it invests in a portfolio of risk capital (such as a Sicar).
Risk diversification requirementsRisk diversification requirements are aligned with those applicable to SIFs, unless the RAIF chooses to invest in risk capital only and such choice is mentioned in its constitutive documents.
Legal Form FCP
- SICAV (SA, Sàrl, SCA, SCoSA)
- SICAF (SA, Sàrl, SCA, SCoSA)
The entities may be open-ended or
closed-ended.
Segregated compartmentsYes
Capital requirements- FCP:
EUR 1,250,000 to be reached within 12 months from the entry into force of the management regulations. - SICAV:
EUR 1,250,000 to be reached within 12 months from the incorporation of the SICAV.
Net asset value (NAV) calculation and redemption policyAt least once a year for reporting purposes.
Corporate income taxNo income tax, unless investing only in risk capital, then SICAR tax regime applicable.
Subscription tax- Rate: 0.01% of the NAV
- Exemptions apply.
Wealth taxNo wealth tax
Withholding tax on dividends / interests and capital gainsNot subject to withholding tax.
Benefit from double tax treaty networkRAIF investing a portfolio of risk capital (such as a SICAR)
Access if set-up as a corporate entity (except if set-up under the form of a SCS/SCSp)
- RAIFs not investing in a portfolio of risk capital (such as a SICAR, but set-up as:
SICAV/SICAF: limited to certain double tax treaties (see circular L.G. A number 61 of the tax administration of 8 December 2017.
Benefit from the EU Parent Subsidiary DirectiveNo, unless RAIF that invests in a portfolio of risk capital (such as a SICAR).
Authorisation and supervision by the CSSFNo
Possibility of listingYes
European passportYes
Thin capitalization rules (debt-to-equity ratio)No debt-to-equity ratio.
Required Luxembourg service providers- Management Company in case
of an FCP
- Depositary institution
- Administrative agent
- Registrar and Transfer Agent