Setting up an investment fund in Luxembourg
Structuring a fund and keeping its books: RAIF, SIF, SICAR, SCSp, valuation inputs, AIFM support.
An investment fund is set up in Luxembourg in four to ten weeks for a RAIF or an SCSp, and after CSSF authorisation for a SIF or a SICAR. This page answers the questions asked before launching: which vehicle, what budget, what minimum capital, which manager, which service providers. Financial Services Luxembourg SARL-S, licensed accountant under business permit 10077274, keeps the books of the vehicles and their SPVs, prepares the valuation inputs and coordinates the authorised service providers.
How do you set up an investment fund in Luxembourg?
Setting up an investment fund in Luxembourg takes six steps, from choosing the vehicle to the first closing, in four to ten weeks for an SCSp or a RAIF.
- Define the strategy, the asset class and the investor profile.
- Choose the vehicle: SCSp, RAIF, SIF or SICAR.
- Appoint the manager: an authorised AIFM, or a registered manager below the thresholds.
- Select the service providers the chosen regime requires.
- Draft the articles or partnership agreement and the issuing document.
- Incorporate the vehicle, register it with the RCS and open the books.
How much does it cost to set up a fund in Luxembourg?
Setting up a fund in Luxembourg costs between EUR 20,000 and EUR 160,000 in set-up fees, then from EUR 20,000 a year to run.
| Cost item | Set-up | Per year |
|---|---|---|
| Structuring and legal advice | EUR 30,000 to 80,000 | Per transaction |
| Documentation, articles and issuing document | EUR 15,000 to 40,000 | Updates |
| Incorporation and notary | EUR 5,000 to 15,000 | Amending deeds |
| Authorised external AIFM | Onboarding | 0.05 to 0.15% of assets, plus EUR 20,000 to 50,000 |
| Depositary | Account opening | 0.02 to 0.15%, floor EUR 15,000 to 30,000 |
| Central administration and registrar | Onboarding | EUR 25,000 to 100,000 |
| Approved statutory auditor | Not applicable | EUR 15,000 to 50,000 |
| Subscription tax | Not applicable | 0.01% of net assets, none for the SICAR |
What is the minimum capital for a Luxembourg fund?
The minimum capital of a Luxembourg fund is EUR 1,250,000 of net assets for a RAIF or a SIF, and EUR 1,000,000 for a SICAR, to be reached within 24 months since the law of 21 July 2023.
| Vehicle | Minimum net assets | Period | Legal basis |
|---|---|---|---|
| RAIF | EUR 1,250,000 | 24 months | Law of 23 July 2016, art. 20 |
| SIF | EUR 1,250,000 | 24 months | Law of 13 February 2007, art. 21 |
| SICAR | EUR 1,000,000 | 24 months | Law of 15 June 2004, art. 4(1) |
| Unregulated SCSp | None | Not applicable | Law of 10 August 1915, art. 320-1 |
How long does it take to set up a fund in Luxembourg?
Launching a fund in Luxembourg takes six to ten weeks for a RAIF, including three to six weeks of documentation. A SIF or a SICAR add the CSSF review period.
| Stage | Duration | What extends it |
|---|---|---|
| Structuring and documentation | 3 to 6 weeks | Compartments, share classes |
| Incorporation and launch, total | 6 to 10 weeks | Contracting the AIFM and the depositary |
| SIF and SICAR | After CSSF authorisation | File completeness, approval of the directors |
Can you set up your own fund without being an authorised manager?
An initiator can set up their own fund in Luxembourg without being authorised. Below EUR 100 million of assets they run an SCSp as a manager registered with the CSSF. Above that, or for a RAIF, they appoint an authorised third-party AIFM and keep investment advice.
What this hub covers
Choosing between a RAIF, a SIF, a SICAR and an SCSp turns on speed to launch, the supervision investors expect and the nature of the assets. The line-by-line comparison of the four vehicles is set out on the page RAIF, SIF or SICAR: which vehicle to choose.
An authorised AIFM is mandatory for a RAIF, and above EUR 100 million of assets under management or EUR 500 million without leverage. How these thresholds are calculated, and the registration procedure under article 3(2) of the law of 12 July 2013, are covered on the page AIFM and management-company support.
The service providers a fund must appoint depend on the product regime: a RAIF, a SIF and a SICAR each require an AIFM, a Luxembourg depositary and an approved statutory auditor. The full matrix of obligations per vehicle is published on the page investment fund services.
What the firm does, what it coordinates
On an SCSp, an unregulated securitisation company or an alternative fund below the thresholds managed by a registered manager, Financial Services Luxembourg keeps the books of the vehicle, produces the valuation statements and keeps the ordinary-law register of partners.
On a RAIF, a SIF or a SICAR, the firm keeps the books of the GP, the initiator and the SPVs, prepares the valuation inputs that the manager approves, and coordinates the AIFM, the depositary, the approved statutory auditor and the notary. Striking the net asset value, central administration and the registrar function are performed by an entity authorised by the CSSF. Domiciliation is provided by our partner attorney at law, Cerno Law.
Services in this hub
Fund structuring
RAIF, SIF, SICAR, SCSp, AIFM
Fund services
Accounting, NAV, substance, reporting
Unregulated fund admin
SCSp, below-threshold AIF
Fund accounting
Bookkeeping, investor reporting
NAV calculation
Valuation inputs, periodic reporting
AIFM / ManCo support
Accounting, regulatory reporting
RAIF
Reserved Alternative Investment Fund
SIF Luxembourg
Specialised Investment Fund
SICAR Luxembourg
Risk-capital investment company
SCSp
Special limited partnership, carried interest
Private Equity structuring
SOPARFI, SCSp, LP reporting
Securitisation
Securitisation vehicle, compartments
RAIF vs SIF vs SICAR
Fund vehicles compared
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Frequently asked questions
What subscription tax does a Luxembourg fund pay?
A RAIF and a SIF pay an annual subscription tax of 0.01% of net assets, declared and paid quarterly to the Administration de l'enregistrement, des domaines et de la TVA. The SICAR and a RAIF that opted for the risk-capital regime are exempt.
What is the minimum ticket to invest in a reserved fund?
A well-informed investor subscribes at least EUR 100,000 in a RAIF, a SIF or a SICAR, a threshold lowered from EUR 125,000 by the law of 21 July 2023. Professional investors within the meaning of MiFID, and investors assessed by a credit institution or a manager, have no minimum.
Does a Luxembourg fund pay corporate income tax?
A RAIF and a SIF are exempt from corporate income tax, municipal business tax and net wealth tax. A SICAR set up as a company is subject to tax but exempt on income from transferable securities. An SCSp is tax transparent: its partners are taxed under their own regime.
What is the NAV and who strikes it?
The net asset value is the value of one unit of the fund, equal to net assets divided by the number of units, calculated at each subscription or redemption date. On a RAIF, a SIF or a SICAR, the authorised administrator calculates it and the manager approves it; the accountant prepares the accounting inputs.
Which diversification rules apply since 2026?
CSSF circular 25/901 of 19 December 2025 replaces the 30% rule for SIFs, SICARs and Part II UCIs: a 25% cap per asset for funds open to non-well-informed investors, 50% for funds reserved for well-informed investors, and 70% in infrastructure. A RAIF applies the risk-spreading principle of its own law.