Luxembourg is a leading hub for investment funds, offering a well-regulated environment for private equity, hedge funds, real estate funds, and other investment structures. The cost of setting up a fund in Luxembourg varies based on fund type, legal structure, and regulatory requirements.

Key Costs Involved in Establishing a Luxembourg Fund

1. Fund Registration and Legal Fees

• Initial setup costs typically range from €30,000 to €100,000, depending on complexity.
• Legal structuring, regulatory filings, and fund documentation contribute to expenses.

2. Regulatory and Licensing Fees

• Funds regulated by the CSSF (Commission de Surveillance du Secteur Financier) may incur additional fees.
• For Specialised Investment Funds (SIFs) and Reserved Alternative Investment Funds (RAIFs), CSSF fees range from €3,000 to €5,000.

3. Operational and Administration Costs

• Fund administration,compliance, and accounting services cost €50,000 to €150,000 per year.
• Depositary and custodian fees depend on assets under management (AUM).

4. Tax Considerations and Annual Costs

• Subscription tax (Taxe d'Abonnement) of 0.01% to 0.05% applies annually.
• Corporate service providers and annual audit fees can range from €20,000 to €50,000.

Why Luxembourg is the Right Choice for Fund Structuring

With favorable regulations, investor protection, and access to global markets, Luxembourg remains a top destination for fund managers. Setting up a fund here provides tax efficiency, credibility, and strong legal frameworks for international investment strategies.

Get Expert Guidance on Fund Setup in Luxembourg

To determine the exact cost for your fund structure, consult with Luxembourg-based legal and financial advisors. Proper planning ensures cost efficiency and compliance with regulatory requirements.