UCITS (Undertakings for Collective Investments in Transferable Securities) offers a high level of protection for the investors who created the fund. Entrepreneurs who want to open a UCITS fund in Luxembourg can get legal assistance from our experts.
| Quick Facts | |
|---|---|
| The law regulating UCITS in Luxembourg |
Law of 17 December 2010 |
|
Types of UCITS |
– collective investment fund (FCP) – investment company with fixed capital (SICAF) – investment company with variable capital (SICAV) |
|
Institutional supervision (yes/no) |
Yes |
| Minimum capital to set up UCITS |
EUR 1,250,000 (the capital required during the authorization can be less than this, depending on the selected entity) |
| Authorization required (yes/no) | Yes |
| Requirements for the directors of UCITS in Luxembourg |
– experience in the field; – very good reputation; – there aren’t any residency requirements; – no nationality requirements as well; – the directors must be approved by the CSSF. |
| Single structure/multiple structures allowed (yes/no) |
Yes |
| Fixed capital/variable capital allowed (yes/no) | Yes, UCITS can be set up with fixed/variable capital. |
| Requirements for variable capital structures |
– it can be self-managed or appoint a management company; – it manages its own investment portfolio; – the required capital is EUR 1,250,000; – it must be deposited in 6 months since the incorporation. |
| Requirements for fixed capital structures |
– it can be incorporated under any of the legal entities available in Luxembourg; – it must deposit EUR 300,000 upon incorporation; – the entire capital, EUR 1,250,000, must be deposited in maximum 6 months since the incorporation; – suitable for investments in transferable securities. |
| Registration fee charged (yes/no) |
Yes |
| Taxes charged on UCITS in Luxembourg |
– capital duty, – the subscription tax, – capital gains tax (applied in exceptional conditions) |
| Tax exemptions |
– net wealth tax, – capital gains tax, – income tax, – withholding tax |
| Tax system for the UCITS subscription tax |
It is charged at a rate of 0.05% of the net assets of the fund. A lower rate – 0.01% – is available in certain conditions. |
| Legal entities allowed for the SICAR/SICAV/SICAF in Luxembourg |
– SICAR – limited liability company/public limited company, partnership limited by shares, limited partnership; – SICAV – public limited company; – SICAF – any legal entity available in Luxembourg |
What is the main supervising body for UCITS in Luxembourg?
The UCITS funds operate under the supervision of the Commission de Surveillance du Secteur Financier (CSSF).
Do UCITS funds need to be authorized?
Before commencing any activities, any undertaking for collective investment in transferable securities in Luxembourg must be authorized by the CSSF as per Article 129 of the law related to UCITS.
What are the UCITS organization forms?
There are two forms that a UCITS can adopt:
- FCP – undivided collections of transferable securities and/ or other liquid financial assets;
- SICAF/ SICAV – an investment fund organized as an investment company with fixed or variable capital.
What are the requirements for FCP UCITS?
The FCP is established with no legal personality and it relies on a company that manages it. The managing company is responsible for the transactions. At least EUR 1,250,000 is necessary in order to establish this type of fund. This amount must be reached no later than six months from the registration. According to law, the FCP can increase its assets to up to EUR 2,500,000.
What are the differences between SICAV and SICAF?
The difference between the two is in the authorized share capital. The SICAF has fixed capital, while the SICAV has variable capital. A SICAV/ SICAF that isn’t managed by a management company must register in the beginning a minimum capital of EUR 300,000 (at incorporation). Within six months of its authorization, this fund must reach a capital of EUR 1,250,000. This capital can be increased.
What documents must I submit to the CSSF in 2026?
The basic documentation that must be submitted by any applicant refer to the following:
- the fund prospectus;
- the Key Investor Information Document;
- a semi-annual report;
- an annual report.
In what languages can I submit the documentation?
Documentation for the registration is accepted in any of the following languages:
- Luxembourgish;
- German;
- English;
- French.
What are the accepted management companies?
For UCITS that need to be managed by a management company, eligible companies can be:
- Luxembourg-based management companies;
- EU-based management companies.
Can I set up compartments?
Yes, it is important to know that UCITS can be set up as a single or as an umbrella fund. The latter option offers the possibility of carrying multiple investment strategies under the same structure.
The infographic below presents how to open an UCITS in Luxembourg:
Do I need to pay registration fees for sub-funds in 2026?
Investors who will set up UCITS funds that have compartments (sub-funds) must pay a registration fee for each sub-fund they open.
Can I market an EU UCITS in Luxembourg?
Yes, foreign investors can market an UCITS established in another EU country on the Luxembourg financial market. For this, it is necessary to address the CSSF by submitting a formal notification. The latter must be address by the fund’s responsible authority in the respective country.
Are there any fees charged by CSSF for cross-border operations in 2026?
Yes, there are various types of fees charged by CSSF and which are applied to the UCITS structures and the management companies. For instance, there are specific fees charged for cross-border activities (Luxembourg entities operating on the EU market and vice versa). The CSSF will charge the following:
- an annual lump sum of EUR 18,000 applied to Luxembourg management companies that have set up a branch abroad (the fee is imposed for each incorporated branch);
- an annual lump sum of EUR 15,000 is charged to foreign management companies that have set up a branch in Luxembourg;
- an examination fee of EUR 3,000 is applied for EU UCITS submitting their request to operate in Luxembourg – the same fee is imposed for each request for authorization;
- EUR 5,500 is the standard examination fee for EU UCITS operating as umbrella funds.
Investors can find out more details on the UCITS in Luxembourg below:
Is there a subscription tax for UCITS in 2026?
All investment funds in Luxembourg which are registered as UCITS are imposed with an annual subscription tax. As a general rule, the subscription tax is applicable at the rate of 0,05% on the net asset value of the fund. However, there are certain categories of UCITS that can be imposed with a much lower subscription tax, applicable at the rate of 0,01%.
Do I need the assistance of a specialists in order to open UCITS in Luxembourg?
Yes. The documentation required for the registration of an investment fund in Luxembourg, UCITS included, is extensive and needs the assistance of individuals specialized in legal and financial matters. In general, the documentation submitted to the CSSF needs the supervision of lawyers, financial specialists, bankers, auditors, etc.
What is the European law on UCITS in Luxembourg?
Luxembourg was the first European state which implemented the EU directive 85/611/CE in 1985 into its national legislation. This Directive was enabled to establish a common framework for retail investment funds. Later on, the legislation was updated by the Directive 2014/91/EU. This type of investment fund – UCITS – is regulated under the rules of the Law of December 17, 2010, which is harmonized with the EU Directives.
Can you help me open an investment fund elsewhere?
We can also help you if you need to open an investment fund in Dubai or in another region/ country, through our local partners.
If you need further information on the UCITS in Luxembourg, please contact our financial consultants, who can offer you legal assistance.