The numbers of success
In its latest report, the ALFI (Association of the Luxembourg Fund Industry) highlights the progress and consolidation of investments in the discreet area of Real Estate Investment Funds (REIFS) and the figures speak for themselves: 315 real estate investment fund, more than 40 billions in assets under management, 27 Direct funds and five funds of funds.
The activity of the Luxembourg real estate funds highlights the concept of internationalization. On one hand, they open their doors to European investors, but also to actors from Asia, the Middle East and the Americas. On the other hand, they inject their funds in property located mainly in Europe but also, and the trend is being confirmed, in Asia and South America.
The figures in the report could be even more dramatic if ALFI did not refer only to regulated funds.
Part of success
The Grand Duchy is a leading actor on the stage of the international real estate investment trust in Luxembourg for several reasons:
A wide range of investment vehicles.
The FIS – reserved for experienced investors. The SICAR – deploying its activity in the capital at risk. The fund – based on a joint ownership of assets. The Company Special Sponsorship – fiscally transparent and purely contractual. Future Alternative Investment Funds Reserved – flexible and reduced time to market. The ELTIF – investing in the real economy and enjoying a European passport. Etc.
A favourable tax environment.
The Grand Duchy has signed a number of preventive Double Taxation Conventions. The content of these treaties promotes the establishment and operation of pan-European or international real estate funds in any fiscal neutrality to the extent that they secure the income of foreign investors. Luxembourg is one of the only European countries to offer real estate investment vehicles completely tax neutral.
An experienced and responsive regulator – the Grand Duchy can count on the support of the CSSF, the authority in charge with the supervision of the funds. With a solid experience, very responsive and with substantial resources, the entity grants Luxembourg a clear comparative advantage over competitors.
A busy “toolbox”, a favourable tax environment and an effective regulator of Luxembourg are creating a leading jurisdiction. Undoubtedly, the Grand Duchy environment attracts foreign investors and attracts real estate investment vehicle Luxembourg.
In reality, the investor faces only two obstacles. Firstly, he must find the appropriate advice. In this regards, Hance Law Lawyers relies on a team of competent lawyers, experienced and multilingual Secondly, he must obtain information about the Luxembourg real estate industry investment, as well as capital investment activities of companies or investment in financial markets.
We hope that this modest contribution has helped you resolve some uncertainties and answer some questions.