A new investment vehicle designed for private investors will most probably be introduced in the next couple of months, currently named the SOGEPAF (“société de gestion de patrimoine familial“). A draft bill is currently under discussion but not yet set before Parliament to provide this new Luxembourg investment vehicle. This investment vehicle will be introduced as a substitute for the holding 1929 companies.
As currently under discussion, this new investment vehicle will mainly have the following key features.

  • No corporate income tax;
  • No net worth tax;
  • A subscription tax of 0,25% on the capital invested with a cap (to be determined in the future);
  • Subject to debt equity ratio rules;
  • Maximum of 5% of dividends coming from companies established in countries where taxation rate is lower than 11%.

The investment vehicle set out hereabove is only a proposal at this moment and will be discussed by the Luxembourg parliament in the coming weeks and months. We will keep you updated once there is more information available.
This investment vehicle will certainly be interesting for all those who want to manage private assets.
Do not hesitate to contact us should you have any questions on the above.