Luxembourg is one of the first countries in Europe to adopt a
legislation on securitization and the
entities that can be established. The
Luxembourg Securitization Act was enabled in the spring of 2004 and allows for the securitization of a great number of assets, types of incomes and risks which would be accessible to both individual and institutional investors. The following types of assets can be securitized by
special purpose vehicles or entities (SPVs/SPEs) in Luxembourg:
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- securities, such as shares, bonds or loans;
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- real estate property which can be movable or immovable;
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- commercial debts;
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- mortgages.
Legal structures used for SPVs in Luxembourg
The
Commercial Law provides for several types of companies one can set up
in Luxembourg. Some of these structures can also be used to
open special purpose vehicles in Luxembourg. Among them are:
Foreign investors may also use securitization funds to set up a SPV or a SPE in Luxembourg, however this type of entity will have no legal personality. No matter the structure used, the Luxembourg SPV may be compartmented.
How to register the Luxembourg special purpose vehicle
The
establishment of the SPV will begin with the
company registration process in Luxembourg. For this, the company must be entered into the
Commercial Register after which it will apply for approval with the Luxembourg Financial Supervisory Authority, the CSSF.
Luxembourg SPVs registered as public companies, will be subject to continuous supervision under the rules of the CSSF because this type of company may trade its assets on the Luxembourg capital markets.
A Luxembourg SPV or SPE may engage in two types of transactions:
Also, Luxembourg does not impose any restrictions on the assets of a SPV.
Our accountants can offer you payroll services in Luxembourg if you have a company registered in this country. With the help of this type of service, salaries can be paid in the company, respecting internal regulations, as well as other accounting legislation. Therefore, we recommend you get in touch with us and discover our services, as well as benefit from a free case evaluation.
For assistance in
opening a SPV in Luxembourg, please feel free to
contact us. Our
Luxembourg company formation consultants can also offer information about the
taxation of SPVs and SPEs.