- Company form: SA, SARL, SCA, COOPSA.
Authorized activities
- holding, acquisition, management and realization of financial assets such as shares, bonds, securitization funds, term accounts, SICAV...
- in addition, the SPF is authorized to issue securities and to borrow from its shareholders or third parties.
Prohibited activities
- the exercise of any commercial activity.
- ownership of real estate by the SPF, either directly or indirectly through other companies.
- the granting of interest-bearing loans to third parties or even to companies in which the SPF holds a stake (in the latter case, however, loans on an ancillary basis and free of charge are permitted).
SPF shareholders
- Individuals, whether resident or non-resident.
- SPF shareholders may also be “patrimonial” entities, whether resident or non-resident, acting in the context of private wealth management.
- Control of the SPF by the Registration and Domains Administration
- Tax treatment of SPFs
Taxes related to its incorporation
- Capital duty/ abolished on January 1, 2009
- Subscription tax: the tax base is made up of the paid-up capital, debts and share premium. The tax is payable quarterly. The annual rate is 0.25%, with a minimum of 100 euros and a maximum of 125,000 euros.
- Tax on income and dividends, profits or any other income received by the SPF.
- Taxation on capital gains realized on the sale of SPF shares: this depends on the shareholder’s status:
- If the shareholder is a Luxembourg resident, he or she will be subject to tax.
- If they are not, they will be exempt.
Tax treatment of the SPF
- Wealth tax: the SPF is not subject to wealth tax.
- Value-added tax: the SPF is not subject to VAT.
- The SPF does not benefit from double taxation treaties or EU directives (Directive 90/435/EEC).
Tax treatment of income received from the SPF
- Wealth tax: the SPF is not subject to wealth tax.
- Luxembourg resident shareholders: no withholding tax, but subject to local personal income tax (tax charge 30.38% from € 15,000).
- Non-Luxembourg resident shareholders: no withholding tax.
Taxation of SPF income will be the exclusive responsibility of their state of residence.
- On interest paid on SPF advances and debts to individuals:
- Shareholders resident in Luxembourg: withholding tax of 10%.
- Non-resident shareholders: withholding tax of 15%.