Securitization vehicle Table
| Securitization vehicle | |
|---|---|
| Practical use | - Securitization of a portfolio of securities - Securitization as structure for intra group financing activities - Real estate securitizations |
| Applicable legislation | Law of 22 March 2004 (“Securitization Law”) |
| Eligible investors | Unrestricted. |
| Eligible assets | Unrestricted. Securitization of any kind of risks relating to claims, other assets, or obligations assumed by third parties or inherent to all or part of the activities of third parties. |
| Risk diversification requirements | No risk diversification requirements. |
| Legal Form | A securitization vehicle may be set up in the form of a company (SA, Sàrl, SCA, SCoSA) or a fund consisting of one or several coownerships or one or several fiduciary estates and managed by a management company. |
| Segregated compartments | Yes |
| Capital requirements | If the securitization vehicle is set up as a company, it depends of the form: - SA / SCA: EUR 31,000 - Sàrl: EUR 12,500 If the securitization vehicle is set up as a fund, there is no minimum capital requirement. |
| Net asset value (NAV) calculation and redemption policy | Not required. |
| Corporate income tax | General aggregate rate: 24.94% Securitization vehicles should be able to deduct from their gross profits their operational costs and the dividends or interests distributed to the shareholders / creditors. Therefore securitization companies should not generate significant taxable profits and should therefore to a large extent be tax neutral. |
| Subscription tax | No subscription tax. |
| Wealth tax | No wealth tax. |
| Withholding tax on dividends / interests and capital gains | Not subject to withholding tax except if EU Savings Directive applies. |
| Benefit from double tax treaty network | Yes |
| Benefit from the EU Parent Subsidiary Directive | Yes |
| Authorisation and supervision by the CSSF | No (unless continuous issues of securities to the public) |
| Possibility of listing | Yes |
| European passport | No, unless it falls under the scope of the full AIFMD regime. |
| Thin capitalization rules (debt-to-equity ratio) | No debt-to-equity ratio. |
| Required Luxembourg service providers | - Management Company (if the securitization vehicle is set up in the form of a fund) - Independent auditor - No depository institution (unless subject to approval by the CSSF) - No administrative agent (if managed by the securitization company itself) |