RAIF in Luxembourg (Reserved Alternative Investment Fund)

January 29, 2021
hands 1063442 1920

Luxembourg is the primary investment area put on the planet after the United States with strong remaining as a worldwide asset center, and considers a wide scope of investment institutions, covering the sum of the asset systems on the global level after the US.

The Reserved Alternative Investment Fund (RAIF) is a fund for putting in that can place assets into diverse forms of investment.

Reasons behind picking Luxembourg RAIF

  • Luxembourg RAIF is really sensible to set up, work and are not limited to EUR 100M as for investing;
  • Luxembourg RAIFs are public, they can be progressed as openly as a traded on a market and genuinely transparent; they can be accessible to capital holders effectively through their web banking;
  • Luxembourg RAIF can be made in a short period of time (1.5 – 2.5 months), since it need not be confirmed by the Luxembour Commission de Surveillance du Secteur Financier (CSSF). In light of everything, the RAIF is coordinated by the AIFMD and directed by an affirmed Alternative Investment Fund Manager (AIFM);
  • It is possible to list the Luxembourg RAIF into the financial exchange field without striking a blow.


  • A yearly participation cost of 0.01% of net assets should be paid at regular periods.
  • If the Fund holds bits of various assets, the previously indicated rule does not work, to keep away from taxes.
  • On a worldwide level, RAIF is basically covered by 28 of 76 tax agreements among Luxembourg and the other EU-countries.

Competent investors

These are described as professional investors who have confirmed proofs in form of a printed copy that they adhere to the “well-qualified” monetary expert status. Besides, they need to either invest no less than125K euros in the RAIF or have been evaluated by a credit company, venture organization or the board association that ensures the financial specialist’s expertise, experience and data in sufficiently getting the measure of an interest in the RAIF.

Legal background

RAIFs are covered by the Luxembourg Law of 23 July 2016 (the RAIF Law). The Luxembourg law of 12 July 2013 on Alternative Investment Fund Managers (AIFM Law) is also a regulator.

RAIF is placing resources into transient assets and, offering returns as per cash market rates or protecting the assessment of the asset, ought to agree moreover to the essentials of Regulation (EU) 2017/1131 on money market funds. There are some of additional guidelines (for instance concerning AML, MiFID, subordinates, securities financing trades, investor’s rights).

Business form

The RAIF may be set up as a following commercial structure:

  • A fonds commun de circumstance (FCP). The FCP directed by a Luxembourg executive association and has no legitimate essence.
  • A société d’investissement à capital variable (SICAV) or société d’investissement à capital fixe (SICAF), closed or public asset associations with fixed or variable capital independently. This corporate structure requires the drafting of consolidation instruments.
  • The FCP or SICAV/SICAF may be established as a lone asset or as a solitary unit with various compartments, each with a specific investment method.

Foundation and indirect management

Luxembourg RAIF need not the CSSF affirmation for being administered by a Management Company agreed by CSSF, as per the Directive AIFM 2011/61/UE. A legitimate authority does not have to approve Constitutional document of the fund. It is sufficient to ensure that the AIFM attests the fund’s creation, and that this information is disseminated in the authority periodical, the Mémorial.


The net RAIF funds may be not actually 1 250 000 euros. 5% of the capital ought to be paid at getting a membership.

Disclosure measures and monetary reports

A RAIF should involve a PRIIP Key Information Document (KID) if retail investors are able to make investments, and a yearly report. There is no obligation to send a semi-yearly reporting.

AIFM affirmation

RAIFs are expected to be accept by AIFM, they cannot be regulated inside. The AIFM can be set up in EU Member State or in a third country. If the RAIF is regulated by an organization association, it will in general be designated as AIFM.

Luxembourg RAIF has all advantages of general European area, allowing all associations put assets into the fund and to be advanced in all EU-countries.

A UCITS overseeing association may apply for approval as AIFM to regulate both UCITS and AIFs.

Suppliers of services

The overseeing association of a FCP should draw up the organization rules for the basic assets. Autonomous SICAV/SICAFs may simply administer monetary assets of their own portfolio and may not direct assets of third party. The central association of a RAIF ought to be in Luxembourg.

A RAIF should assign a Luxembourg depositary. The certified depositaries are Luxembourg credit foundations, yet furthermore Luxembourg speculation organizations fulfilling certain essentials set by the Law of 5 April 1993 concerning the financial field, as reexamined. An affirmed independent monitor with appropriate master experience ought to investigate the yearly report.

Different other services representatives for a RAIF consolidate lawyers, portfolio administrators, heads and trained professionals, domiciliation subject matter experts, wholesalers and paying subject matter experts.

Related insights

Obtaining residence permit and citizenship in Turkey when buying a property

Dreaming of life under the Turkish sun? A Turkish Residency Permit is your ticket to a carefree holiday. Residency allowance not only legalizes your stay for a year or more but also opens doors for work, depending on the type of document obtained. Learn who can get the coveted status, under what terms, and what…

Read more 03.06.2024

NIE NUMBER in Spain: Definition, Types, Procedure and Papers

Provided that you are a non-citizen, buying a property in Spain is possible with the NIE. It is your unique number as a non-citizen. It’s vital for various activities, from buying housing to making a bank account. However, it’s important to note that the NIE alone doesn’t grant lawful residency. This article will guide you…

Read more 28.05.2024

How to Purchase a Property in Spain

Buying a property in another state offers numerous chances, from generating rental income to becoming a resident or even a citizen. With a diverse range of places to choose from, finding the ideal house in Spain is within reach. While the acquiring procedure may appear daunting at first, this guide provides a clear and concise…

Read more 28.05.2024

Gaming license in Portugal

The gaming industry in Portugal has seen substantial growth, prompting both local entrepreneurs and global investors to explore opportunities in this lucrative market. Understanding the legal framework for obtaining a gaming license in Portugal is essential for those interested in documenting this sector. This comprehensive guide covers the essentials of the gaming-license process, the associated…

Read more 27.05.2024

Buying A House In Spain In 2024

Acquiring housing requires careful navigation of legal procedures and a keen awareness of the accommodation market. Before investing, in-depth investigation is vital to avoid scams, understand taxation, and stay ahead of market changes.  This guide provides valuable insights for a smooth transition to homeownership in Spain, whether you’re interested in coastal areas or major cities….

Read more 27.05.2024

Buying an apartment in Spain: Is it a good idea

Acquiring a property in Spain can be an appealing choice for numerous international investors. The country boasts stunning beaches, a pleasant climate, and a rich culture that draws people from various backgrounds. In this article, we will delve into the reasons why investing in an apartment in Spain is a wise decision. Embracing the Mediterranean…

Read more 21.05.2024

How does the Process of Buying a Property in Turkey Work?

Turkey, with its rich cultural heritage, stunning landscapes, and booming real-estate field, has become an increasingly popular destination for possession investing. Whether you’re looking for a holiday home, a retirement retreat, or a lucrative investing possibility, guiding the method of Purchasing Property in Turkey can be an exciting yet daunting task. In this comprehensive guide,…

Read more 13.05.2024

Crypto license in the Dominican Republic

Crypto has significantly altered the economic landscape globally, offering innovative ways to transact and invest. As these digital assets gain traction, various countries are establishing adjustment substructures to oversee their use and protect investors. The Dominican Republic, known for its progressive policy to technology and finance, has also begun to navigate the complex terrain of…

Read more 24.04.2024

5 Best jurisdictions for Gaming license

In the vibrant realm of online-gaming, selecting a jurisdiction for achieving gaming permission transcends a mere adjustment formality; it’s a crucial decision impacting field access, tax obligations, and the brand’s prestige. A wise choice can unlock doors to profitable fields, build trust among players and partners, and ensure a stable legal framework conducive to growth….

Read more 17.04.2024

In which countries is it better to buy Real Estate in 2024?

In the ever-evolving landscape of global real-estate acquisition, the question of where to invest money is crucial. While the past may offer some insights, the future is where depositors aim to position themselves for success. Now, in 2024, various factors come into play when determining the best countries for real-estate acquisition. From economic solidity to…

Read more 16.04.2024

Top 6 Best Offshore Jurisdictions for crypto:

In recent years, the cryptocurrency field has witnessed exponential growth, attracting investors and enthusiasts alike from all corners of the globe. However, navigating the legal landscape surrounding cryptocurrencies can be complex, with adjustments varying significantly from one lawfulment to another. For those looking to establish a crypto-related business or simply seeking a favorable adjustment circumstances…

Read more 08.04.2024

What is important to know when buying Property in Turkey?

Whether you’re considering purchasing a holiday home, an investment in property, or relocating permanently, buying real estate in Turkey can be a rewarding venture. However, like any possessions purchase, it requires careful consideration and research to ensure a smooth transaction and avoid potential pitfalls. In this guide, we’ll explore the key factors to keep in…

Read more 21.03.2024