As Swedish investors increasingly look beyond their borders for yield, diversification, and asset protection, Luxembourg’s Special Limited Partnership (SCSp) has emerged as a powerful tool for cross-border structuring and market expansion. With its legal flexibility, tax neutrality, and investor-friendly regulatory framework, the SCSp is attracting a new wave of Swedish family offices, private equity firms, and HNW entrepreneurs aiming to scale their investment strategies across Europe and beyond.
Why Swedish Investors Are Expanding Abroad
Sweden is home to a highly sophisticated investor community with a strong track record in private equity, real estate, infrastructure, and tech startups. However, with negative interest rates in the rearview mirror and inflationary pressure on returns, many investors are pivoting toward international diversification. Key motives include:
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Access to larger deal flow in Europe and overseas
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Tax-efficient structures for international joint ventures
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Protection of assets under a favorable legal regime
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Succession planning for family wealth across jurisdictions
This is where Luxembourg’s SCSp provides a competitive edge.
What is an SCSp?
The Special Limited Partnership (Société en Commandite Spéciale) is a Luxembourg vehicle tailored for investment purposes. Inspired by Anglo-Saxon common law partnerships, it has no legal personality and is governed by a partnership agreement. This gives investors enormous freedom to define profit-sharing, governance rights, and capital commitments.
Key features include:
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No minimum capital requirement
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No need to publish financial statements
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No supervision by the CSSF unless qualifying as a regulated fund
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Legal structuring flexibility for bespoke deals
The SCSp in Action: Ideal for Swedish Investment Strategies
The SCSp aligns seamlessly with Swedish investment practices:
1. Private Equity and Venture Capital
Swedish GPs launching new funds or co-investment platforms can structure their vehicles via SCSp, allowing for flexible carry arrangements and waterfall clauses. Since SCSp allows full contractual freedom in the limited partnership agreement, it’s perfect for multi-investor, multi-deal vehicles.
2. Real Estate Structuring
With the SCSp, Swedish investors can pool capital to acquire assets in Germany, France, or Southern Europe. Combined with Luxembourg’s double taxation treaties, the structure ensures efficient repatriation of profits while ring-fencing risk at the asset level.
3. Family Wealth Management
SCSp is increasingly used by Swedish family offices to hold diverse assets – from private company shares to alternative investments – with succession clauses and governance rules embedded in the agreement. This ensures seamless intergenerational transition while benefiting from tax neutrality at the SCSp level.
Tax Transparency = Tax Efficiency
The SCSp is tax transparent by default. This means it is not subject to corporate income tax, municipal business tax, or net wealth tax in Luxembourg. Profits are only taxed at the partner level, typically in Sweden – unless structured through intermediary holding companies.
This setup allows Swedish investors to tailor their global tax exposure in line with treaties, transfer pricing principles, and their risk appetite.
Luxembourg = Global Connectivity
What makes Luxembourg attractive to Swedes is not only its legal framework but its financial ecosystem:
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Over €6.1 trillion in assets under management (ALFI 2024)
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Home to 130+ banks and the EU’s largest investment fund center
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Expertise in cross-border SPV structuring
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Smooth access to global custody and fund administration
For Swedish investors targeting Germany, the Netherlands, Spain, or even North America and Asia, Luxembourg offers unrivaled structuring flexibility combined with credibility in international markets.
Damalion Supports Swedish Investors in Luxembourg
At Damalion, we guide Swedish investors in structuring and launching their Luxembourg SCSp vehicles with precision and speed. Our expertise covers:
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Drafting the limited partnership agreement
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Selection of general partner structures (e.g., SARL or SA)
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Legal and regulatory filings
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Coordination with tax advisors in Sweden and Luxembourg
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Integration with fund administrators and custodians
Whether you’re a Stockholm-based VC fund, a family office targeting pan-European real estate, or an entrepreneur seeking a multi-asset vehicle for growth, the SCSp gives you the legal and operational platform to scale internationally.
Let us help you go from Stockholm to Luxembourg—and beyond.
Contact Damalion today to start your cross-border journey.
| Feature | SCSp (Luxembourg) | AB (Aktiebolag – Sweden) |
|---|---|---|
| Legal Personality | No (contractual entity) | Yes (separate legal entity) |
| Tax Treatment | Tax transparent (partners taxed) | Corporate income tax + dividend tax |
| Minimum Capital | None | SEK 25,000 |
| Governance Flexibility | Very high (custom LPA) | Medium (governed by Swedish law) |
| Accounting Requirements | No public filing unless regulated | Annual financial reporting mandatory |
| Regulatory Supervision | None (unless regulated fund) | Full compliance with Swedish authorities |
| Investor Suitability | PE/VC firms, family offices, real estate | Local businesses, international operating firms |
10 things to do during your 24 hours business trip in Luxembourg
Here are 10 curated things to do during your 24-hour business trip in Luxembourg, focused exclusively on art and restaurants:
🎨 Art & Museums
1. MUDAM – Musée d’Art Moderne Grand‑Duc Jean
Explore top-class contemporary art in a striking I. M. Pei–designed museum on Kirchberg.
🌐 mudam.com
2. Casino Luxembourg – Forum d’art contemporain
A leading space for cutting-edge temporary exhibitions and cultural events in the city centre.
🌐 casino‑luxembourg.lu
3. Am Tunnel Galerie – BCEE Contemporary Art Gallery
Visit this underground gallery—a transformed bank tunnel—showing works by Luxembourgish and international artists.
🌐 bcee.lu (see “Am Tunnel”)
4. Villa Vauban – Luxembourg City Art Museum
A beautiful 19th-century villa in a lush park, hosting 18th–19th-century paintings and modern decorative arts.
🌐 villavauban.lu
5. Luxembourg City History Museum
A dynamic blend of history and design in Ville Haute, offering rich insights into the city’s development.
🌐 citymuseum.lu
🍽️ Restaurants & Cafés
6. Mosconi
Michelin-starred Italian restaurant in the Grund area, famed for its innovative pasta tasting menus.
🌐 mosconi.lu
7. Um Plateau
Stylish, modern Mediterranean‑Asian fusion dishes in a chic space—perfect for a relaxed business lunch or dinner.
🌐 umplateau.lu
8. Le Sud
Contemporary French cuisine overlooking the Alzette River; ideal for an after‑work meal in a historic setting.
🌐 le‑sud.lu
9. La Distillerie (Château de Bourglinster)
A Michelin-starred vegetarian tasting menu in a 12th-century castle—an unforgettable evening experience.
🌐 bourglinster.lu
10. Chocolate House Nathalie Bonn
Delight in luxurious hot chocolate and gourmet chocolates across from the Grand Ducal Palace.
🌐 chocolate‑house‑bonn.lu