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Real estate investment vehicles may be set up as regulated or unregulated schemes.

Most REIF established in Luxembourg are regulated undertakings for collective investment (UCI), set up in a corporate form (open-ended SICAV or closed-ended SICAF) or a contractual mutual fund form (FCP). A key determining factor in the selection of one of these structures is the tax regime applicable to investors. Two other popular regulated legal structures are:

• the specialised investment fund, which is reserved to eligible investors and is designed to be operationally flexible and fiscally efficient;
• the SICAR or investment company in risk capital. This structure is only suitable for real estate schemes that are operating in a venture capital environment.

Both UCIs and SIFs may adopt a multiple compartment (umbrella) structure.

Non regulated real estate investment vehicles have a choice of four corporate structures, of which the most common are the public limited company (société anonyme or SA) and the private limited company (société à responsabilité limitée or sàrl). A real estate investment scheme may also be set up as a securitisation vehicle under the law of 22 March 2004.

Our brochure Luxembourg Real Estate Investment Vehicles provides a detailed overview of the different structures available.