Investment Vehicles

Luxembourg offers a variety of specialised investment vehicles designed to meet the needs of investors, family offices, and corporate groups seeking tax efficiency, flexibility, and legal stability. Below are key structures commonly used in international investment and wealth management.

Family Wealth Management Vehicle

A bespoke legal structure designed to efficiently preserve, manage, and transfer family assets across generations.

• Customised to provide confidentiality and tax optimisation
• Supports multi-asset portfolios including private equity, property, and alternative investments
• Facilitates succession planning and governance on a cross-border basis

Private Holding Companies

Typically structured as a Société à Responsabilité Limitée (S.à r.l.) or Société Anonyme (S.A.), private holding companies in Luxembourg are designed to provide efficient frameworks for managing and consolidating investments.

• Hold shares, bonds, property, and financing activities
• Benefit from Luxembourg’s extensive network of double taxation treaties
• Access EU directive benefits on dividends and capital gains
• Suitable for multinational groups and private equity portfolios

Special Purpose Vehicle (SPV)

A legal structure designed to segregate financial risk and facilitate project financing or securitisation.

• Ring-fences assets and liabilities
• Essential to structured finance, infrastructure, and securitisation projects
• Formed as private limited companies or partnerships tailored to project needs
• Supported by Luxembourg’s robust legal and regulatory framework

Société en Commandite Simple (SCS)

A traditional Luxembourg limited partnership, designed to offer tax transparency and contractual flexibility.

• Commonly used to hold property and private equity investments
• No separate legal personality, operating under a partnership agreement
• Partners benefit from direct allocation of profits and losses
• Allows investor control with limited regulatory burden

Société en Commandite Spéciale (SCSp)

A modern, tax-transparent limited partnership modelled on the Anglo-Saxon LP, designed to provide flexibility and investor-friendly structures.

• Favoured by private equity, venture capital, joint ventures, and family offices
• No separate legal personality for enhanced confidentiality
• Fully governed by the partnership agreement covering governance, profit sharing, and exit mechanisms
• Generally unregulated unless classified as an Alternative Investment Fund (AIF)
• Profits and losses flow directly to partners with no entity-level taxation

Why Choose Luxembourg for Your Investment Vehicle?

• Flexibility: Tailored structuring to meet investor and business requirements
• Tax Efficiency: Access to tax transparency, treaty benefits, and exemptions
• Legal Stability: Robust and politically stable regulatory environment
• Confidentiality: Partnership agreements and company information remain private
• EU Market Access: Direct access to European capital markets and investors