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Hedge Funds in Luxembourg
A presentation brought to you by StartLuxembourgFund.com
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Invest in Luxembourg
Luxembourg is the perfect location for the entrepreneurs who are seeking to invest in a fund.
Luxembourg has a solid regulatory and legal environment and enjoys a wide range of financial products and services.
At the moment, Luxembourg is the leading economy in Europe in the investment fund domicile with more than 3,900 funds with a value of more than EUR 3,000 billion.
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Set up a hedge fund in Luxembourg
Foreign investors who want to open a hedge fund in Luxembourg should know that they can choose from three legal structures:
• Specialized Investment Fund (SIF);
• Undertaking for Collective Investment (UCI);
• Undertakings for Collective Investments in Transferable Securities (UCITS).
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Legislation for hedge funds in Luxembourg The legislation specifies the eligible investors for the three legal structures.
As such, an UCI structure will require investors from the institutional and retail sectors; the same are required for an UCITS.
All three types of legal structures must be approved by the Commission de Surveillance du Secteur Financier (CSSF) before they start their operations in Luxembourg.
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Taxation of hedge funds in Luxembourg >>
Investors opening a hedge fund should know that the legislation applicable in Luxembourg doesn’t impose any corporate income tax on the income of such entities.
The hedge fund is not the subject of municipal business tax or withholding tax on dividends.
Our team of financial experts can offer more details on this matter.
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>> Taxation of hedge funds in Luxembourg
The hedge fund can be taxed with the withholding tax on dividends only if the European Union’s savings directive applies.
The hedge fund is charged with a subscription tax.
The tax is applicable at the rate of 0.1% of the net assets.
The subscription tax can also be imposed at the lower rate of 0.01%.
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Open a SIF in Luxembourg
The Luxembourg Specialized Investment Fund is a very flexible multi-purpose investment entity which also provides an efficient tax regime for qualified investors.
Luxembourg SIFs can hold a wide range of assets, such as:
• private equity;
• hedge funds;
• real estate.
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Open a UCI in Luxembourg
An UCI structure in Luxembourg can be set up under one of the following legal structures:
• Fonds Commun du Placement (FCP);
• Societe d’Investissement a Capital Variable (SICAV);
• Societe d’Investissement a Capital Fixe (SICAF).
Our team of financial experts can help investors with the registration.
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UCI in Luxembourg - authorizationUCI in Luxembourg can function under the supervision of the Commission de Surveillance du Secteur Financier (CSSF).
Under the law issued on 17th of December 2010, an UCI can start its activity on the territory of Luxembourg after having received the CSSF authorization.
An UCI set up as a FCP will receive the authorization if the management company that will supervise the fund’s investment activities is authorized.
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Consultancy services in LuxembourgInvestors can set up other investment vehicles in Luxembourg, such as the European Long Term Investment Fund.
Our specialists can offer investment advice on the securitization vehicles available in Luxembourg.
Please contact our team of financial consultants for an extensive presentation on the investment legislation applicable to foreign investors in Luxembourg.
Thank you for your attention!
For more information please contact us at:
(+44)203-287 0408 (for international clients)
www.startluxembourgfund.com
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