The Complete Guide Luxembourg is the #1 global hub for investment funds, hosting over €6 trillion in assets under management.
This guide covers everything about Luxembourg fund administration services in 2025 costs, regulations, top providers, and expert insights.
Why Choose Luxembourg for Fund Administration? World’s #2 Investment Fund Center (after the US)
- UCITS & AIFMD Expertise – Gold standard for EU fund compliance
- Tax Efficiency – 0% withholding tax on fund distributions (under conditions)
- Multilingual & Skilled Workforce – Deep expertise in cross-border funds
- Stable & Secure Jurisdiction – AAA-rated economy with strong regulation
Types of Funds in Luxembourg (2025)
| Fund Type | Structure | Best For | Key Regulation |
| UCITS | Retail funds (liquid assets) | EU-wide distribution | UCITS Directive |
| AIF (AIFMD) | Private equity, hedge funds | Professional investors | AIFMD |
| RAIF (Reserved AIF) | Fast-track alternative funds | Institutional investors | AIFM Law |
| SIF (Specialized IF) | Flexible strategies | HNWIs, family offices | SIF Law |
| SCSp (LP Structure) | Private equity, real estate | Tax-transparent vehicles | RAIF/SCSp Law |
Top Luxembourg Fund Administration Services (2025)1. Full Fund Administration
- Net asset value (NAV) calculation
- Shareholder registry & transfer agency
- Financial reporting & compliance
- Tax filing & regulatory submissions
2. AIFM & UCITS Management Services
- Risk management & compliance
- Depositary bank coordination
- Fund distribution support (EU & global)
3. Tax & Legal Advisory
- Luxembourg tax structuring
- Double tax treaty optimization
- DAC6 & FATCA/CRS reporting
4. Custody & Depositary Services
- Asset safekeeping (via banks like Citi, BNY Mellon)
- Cash flow monitoring
- AIFMD depositary compliance
Cost of Fund Administration in Luxembourg (2025)
| Service | Estimated Cost (Annual) |
| UCITS Administration | €30,000 – €100,000+ |
| AIF/RAIF Administration | €50,000 – €200,000+ |
| Depositary Services | €20,000 – €150,000+ |
| Legal & Tax Advisory | €15,000 – €100,000+ |
Key Factors Affecting Cost:
- Fund size (AUM)
- Complexity (leveraged, multi-strategy)
- Distribution scope (EU vs. global)
Top 5 Fund Administrators in Luxembourg
- Citco – Leading for hedge funds & private equity
- Apex Group – Full-service RAIF/UCITS admin
- SS&C GlobeOp – Tech-driven AIF solutions
- Northern Trust – Institutional fund servicing
- Intertrust (Part of CSC) – Mid-market & PE focus
"Luxembourg's fund admin sector is dominated by global players, but boutique firms offer cost savings for emerging managers."
— Jean-Luc Muller, Fund Lawyer (Luxembourg)
How to Set Up a Fund in Luxembourg (2025 Steps)
- Choose a Fund Structure (UCITS, AIF, RAIF, etc.)
- Appoint a Fund Admin & Depositary
- Draft Prospectus & Get CSSF Approval (6–12 weeks)
- Launch & Start Investor Onboarding
- Ongoing Compliance & Reporting ⏳ Timeframe:3–6 months (RAIFs faster at ~4 weeks).
FAQ: Luxembourg Fund Administration
What’s the cheapest fund structure in Luxembourg?
RAIFs (no CSSF approval needed) cost ~€50K to set up vs. €100K+ for UCITS.
Can a foreign asset manager use Luxembourg fund admin?
Yes! 80% of Luxembourg funds are managed by non-resident firms.
Is Luxembourg better than Ireland for funds?
Luxembourg wins for UCITS distribution, while Ireland leads in ETF cost efficiency.
What’s the tax rate on Luxembourg funds?
0% withholding tax on dividends if structured correctly (SOPARFI/RAIF).
Testimonials from Fund Managers
"Our RAIF was up and running in 4 weeks thanks to Luxembourg’s streamlined process."
Michael R., Private Equity CFO"The tax neutrality for our feeder fund saved us millions annually."
Sofia T., Hedge Fund Director
📹 Video: How Luxembourg Fund Administration Works
(In progress)
Need a Fund Administrator?
Get Expert Help! We partner with top-rated Luxembourg fund admins for UCITS, AIFs, and RAIFs.
Book a free consultation: +352 661 198 544
Email: funds@financialservices.lu
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Key Takeaways
- Luxembourg is the best EU hub for cross-border funds (UCITS/AIFMD).
- RAIFs offer speed, while UCITS provide EU passporting.
- Costs start at €50K/year for administration.
- Non-EU managers can access the market with local partners.
Want a detailed comparison?
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