Advantages

Tax regime

The RAIF can be subject to the same tax regime that currently applies to funds like SIFs. The RAIF is then tax exempt on its profits.

If it restricts its investment policy in its constitutive documents to investments in risk capital, it should not be subject to corporate income tax, municipal business tax and net worth tax and would be exempt on withholding taxes on distributions or taxes on speculative capital gains for investors.

No CSSF prior approval

No need of CSSF approval for the creation and launch of a RAIF, and for amendments to the RAIF’s constitutional document, information document or other documents governing the functioning of the RAIF. This gives Fund promoters an important flexibility and speed to market.

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