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Luxembourg: Offshore Business Sectors

International Holding Companies

This page was last updated on 17 June 2020.

Since 2007, the replacement for the 1929 holding company has the family wealth management company or SPF (French: société de gestion de patrimoine familial). Prohibited from commercial activity, these vehicles are limited to private wealth management, for example holding financial instruments such as shares, bonds and other debt instruments, cash and other types of bankable asset. If the SPF is used to hold voting rights in other companies, it must ensure that it does not involve itself in the running of those companies, and it is prohibited from providing any kind of service.

The legal structure for an SPF requires it to be founded as a corporate entity such as corporation or limited liability entity’; the company name must be suffixed by 'SPF'. Partners in an SPF can be trusts, private foundations, investor groups, familial groups or individuals.

An SPF is subject to a subscription tax rate of 0.25% up to an annual cap of €125,000.

 

 

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