SIF Table

Applicable legislationLaw of 13 February 2007 (“SIF Law”)
Authorisation and supervision by the CSSFYes
Qualification as an AIFYes, unless exempt. It is exempt if it does not raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors.
Exemption from AIFMD full regime under lighter regime (AIFMD registration regime)Possible.
Eligible investorsWell-informed investors
Eligible assetsUnrestricted.
Risk diversification requirementsRisk diversification requirements are defined by CSSF Circular n° 07/309. Such requirements are less stringent than the ones applicable to UCITS and UCI. In particular, a SIF is not allowed to invest more than 30% of its net assets in securities of the same type issued by the same issuer.
Legal Form- FCP

The entities may be open-ended or closed-ended.
Umbrella structureYes.
Capital requirementsEUR 1,250,000 to be reached no later than 12 months following the authorisation by the CSSF.
Required Luxembourg service providers- Management company in case of an FCP.
- Depositary bank or professional of the financial sector providing depositary services, subject to conditions.
- Administrative agent.
- Registrar and Transfer Agent.
- Approved statutory auditor.
Possibility of listingYes
European passportNo unless it falls under the scope of the full AIFMD regime
Net asset value (NAV) calculation and redemption policyAt least once a year for reporting
Overall income tax (corporate income tax and municipal business tax)No income tax.
Subscription tax- Rate: 0.01% of the NAV annually.
- Tax exemptions: certain money market and pension funds or SIFs investing in other funds which are already subject to subscription tax.
Wealth taxNo wealth tax.
Withholding tax on dividends / interests and capital gainsNot subject to withholding tax.
Benefit from double tax treaty network- SICAV/SICAF: Limited to certain double tax treaties (see circular L.G. -A n°61 of the tax administration of 8 December 2017).
- FCP: see circular L.G.-A n°61 of the tax administration of 8 December 2017.
Benefit from the EU Parent Subsidiary DirectiveNo.
Thin capitalization rules (debt-to-equity ratio)No debt-to-equity ratio.
Practical useHedge funds, private equity funds, venture capital funds, real estate funds, crypto funds, infrastructure funds, distressed debt funds, Islamic finance funds, microfinance funds, socially responsible investment funds, tangible assets funds and any other type of alternative funds.