|Applicable legislation||Law of 17 December 2010 - Part II(“UCI Law”)
|Authorisation and supervision by the CSSF||Yes|
|Qualification as an AIF||Always an AIF.|
|Exemption from AIFMD full regime under lighter regime (AIFMD registration regime)||Possible.|
The investment objective and strategy of the fund is subject to the prior approval of the CSSF.
|Risk diversification requirements||Risk diversification requirements are defined by IML Circular 91/75 (as amended by CSSF Circular n° 05/177). Such requirements are less stringent than the ones applicable to UCITS. In particular, a UCI is not allowed to invest more than 20% of its net assets in securities issued by any one issuer. Specific restrictions concerning funds adopting an alternative investment strategy are contained in CSSF Circular n° 02/80.
|Legal Form||- FCP
- SICAV (SA)
- SICAF (SA, Sàrl, SCA, SCS, SCSp)
The entities may be open-ended or closed-ended.
|Capital requirements||- FCP:
EUR 1,250,000 to be reached within 6 months from the approval by the Luxembourg regulator.
- Self managed SICAV / SICAF:
EUR 300,000 at the date of authorisation and EUR 1,250,000 within 6 months following its authorisation.
|Required Luxembourg service providers||- Management Company in case
of an FCP
- Depositary institution
- Administrative agent
- Registrar and Transfer agent
- Approved statutory auditor.
|Possibility of listing||Yes|
|European passport||No, unless it falls under the scope of the full AIFMD regime|
|Net asset value (NAV) calculation and redemption policy||The UCIs must make public the issue, sale and repurchase price of their units each time they issue, sell and repurchase their units, and at least once a month.|
|Overall income tax (corporate income tax and municipal business tax)||No income tax.|
|Subscription tax||- Rate: 0.05% of the NAV annually.
- Reduction: 0.01% of the NAV annually in certain specific cases.
- Tax exemptions: special institutional money market cash funds, special pension funds (including pension pooling vehicles) and funds investing in other funds which are already subject to subscription tax.
|Wealth tax||No wealth tax.|
|Withholding tax on dividends / interests and capital gains||Not 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 Directive||No.|
|Thin capitalization rules (debt-to-equity ratio)||Borrowing of up to 25% of net
assets without any restrictions are
|Practical use||Investment funds which could be used for investment strategies that do not meet the criteria set by the UCITS directives.|