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Ch. 11

Tax & Cost Comparison by Fund Type

Taxe d'abonnement rates, formation fees, VAT treatment, and investor tax obligations across Luxembourg fund regimes

CriterionUCITS (retail)SIFRAIFELTIFMMF
Taxe d'abonnement rate (p.a.)0.05% (0.01% for institutional share classes)0.01%0.01%0% (exempt)0.01%
Taxe d'abonnement — payment frequencyQuarterlyQuarterlyQuarterlyN/A (exempt)Quarterly
CSSF initial authorization fee€4,650 (single); €9,250 (multiple); €17,500 (self-managed)€4,650 (single); €9,250 (multiple)No CSSF authorization — no fee€4,650 / €9,250 (CSSF-approved)€4,650 (single); €9,250 (multiple)
New compartment fee€1,100€1,100N/A€1,100 (ELTIF in AIF)€1,100
Formation expense amortizationUp to 5 years (Lux GAAP)Up to 5 yearsUp to 5 yearsUp to 5 yearsUp to 5 years
Fund income tax (dividends, interest, gains)ExemptExemptExemptExemptExempt
Fund withholding tax on distributions0% (generally)0%0%0%0%
Depositary VATTaxable at 17% — not recoverableTaxable at 17%Taxable at 17%Taxable at 17%Taxable at 17%
Fund management VATExempt (core management)ExemptExemptExemptExempt
Fund-level income taxNoneNoneNoneNoneNone
FATCA/CRS reportingYes — mandatoryYesYesYesYes
TER disclosure requiredYes — in prospectus and annual reportYes — in offering doc and annual reportYesYesYes
📌 Data sourced from Lux Investment Funds 2025, Chapters 11. Verify current requirements with CSSF at cssf.lu.