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Luxembourgs securitisering: en god struktur til at tiltrække investorer

af | aug 27, 2024 | Securitisation

The Luxembourg securitization a good structure to attract investors

Luxembourg has long been recognized as a leading financial center in Europe, thanks to its stable political environment, favorable regulatory framework, and strategic location within the European Union. One of the cornerstones of its financial services industry is its securitization market, which provides robust and flexible options for investors. At the heart of this market lies the Luxembourg Securitization Vehicle (SV), an entity designed to facilitate securitization transactions, attract investment, and offer innovative financing solutions. Damalion sums up the principles, regulatory framework, and tax considerations of the Luxembourg securitization vehicle, highlighting why it is an attractive structure for investors.

Principper for luxembourgsk securitisering

Securitisering er en proces, der involverer pooling af forskellige typer finansielle aktiver, som f.eks. lån, realkreditlån eller tilgodehavender, og omdannelse af dem til værdipapirer, der kan sælges til investorer. Det primære mål er at forbedre likviditeten og overføre risikoen fra udstederen til investorerne. Den luxembourgske securitiseringslov fra 2004 udgør det juridiske grundlag for securitisering i Luxembourg og giver en høj grad af fleksibilitet og retssikkerhed.

The basic principle of Luxembourg securitization is to create a vehicle that is separate from the originator of the assets. This separation ensures that the securitized assets are bankruptcy-remote, meaning that the insolvency of the originator does not affect the SV or the securities issued by it. This feature is crucial for protecting investors’ interests and maintaining the integrity of the securitization structure.

Luxembourg SVs can take various forms, including companies (SARL, SA…), partnerships, and funds. This flexibility allows the structure to be tailored to the specific needs of the transaction and the preferences of the investors. The SV can issue different types of securities, including bonds, notes, and shares, depending on the underlying assets and the desired risk-return profile. This adaptability makes Luxembourg SVs suitable for a wide range of securitization transactions, from simple to highly complex.

Reguleringsordning for luxembourgsk securitisering

Den luxembourgske securitiseringsordning er reguleret af den luxembourgske securitiseringslov fra 2004, som giver en omfattende ramme for oprettelse, forvaltning og drift af securitiseringsenheder. Denne lov er designet til at give retssikkerhed og investorbeskyttelse, som begge er afgørende for at tiltrække investeringer og sikre, at securitiseringsmarkedet fungerer gnidningsløst.

I henhold til securitiseringsloven skal en luxembourgsk SV have sit vedtægtsmæssige hjemsted i Luxembourg og ledes af en enhed, der er baseret i Luxembourg. Dette krav styrker SV’ens tilknytning til jurisdiktionen og øger dens troværdighed og stabilitet. Ledelsen og administrationen af SV’en skal overholde Luxembourgs lovgivningsmæssige standarder, som er i overensstemmelse med international bedste praksis. Dette sikrer gennemsigtighed og ansvarlighed, hvilket yderligere øger investorernes tillid.

Et karakteristisk træk ved Luxembourgs securitiseringsordning er muligheden for at oprette afdelinger inden for en SV. Hver afdeling kan indeholde forskellige aktiver og udstede forskellige værdipapirer, og forpligtelserne i hver afdeling er adskilt. Det betyder, at de risici, der er forbundet med en afdeling, ikke påvirker de andre, hvilket giver et ekstra lag af beskyttelse for investorerne. Denne opdeling gør luxembourgske SV’er særligt attraktive til securitiseringstransaktioner med flere aktiver eller flere investorer.

Skatteovervejelser for luxembourgske securitiseringsselskaber

Et af de mest tiltalende aspekter ved luxembourgsk securitisering er dens skattemæssige behandling. Selv om der ikke er nogen særlig skatteordning specifikt for securitiseringskøretøjer, giver Luxembourgs generelle skattelovgivning betydelige fordele, der kan reducere det skattepligtige indkomstgrundlag til nul. Dette opnås gennem fradragsretten for udgifter, herunder rentebetalinger, som kan udligne den indkomst, der genereres af de securitiserede aktiver.

Luxembourgske SV’er er generelt underlagt selskabsskat og kommunal erhvervsskat, men de kan fratrække alle udgifter, der er afholdt i forbindelse med deres securitiseringsaktiviteter. Dette omfatter rentebetalinger til investorer, administrationsgebyrer og andre driftsomkostninger. Ved omhyggeligt at strukturere disse udgifter er det muligt at reducere SV’s skattepligtige indkomst til nul og effektivt opnå skatteneutralitet. Denne skatteneutralitet er en nøglefaktor i de luxembourgske SV’ers tiltrækningskraft, da den gør det muligt for fordelene ved securitisering at strømme igennem til investorerne uden at blive udhulet af skatteforpligtelser.

Begrænsning af rentefradrag

På trods af den skattemæssige behandling skal luxembourgske securitiseringsselskaber navigere i visse begrænsninger på rentefradrag, som er blevet indført som en del af den globale indsats for at bekæmpe skatteunddragelse og sikre retfærdig beskatning. Disse begrænsninger er i overensstemmelse med direktivet om bekæmpelse af skatteunddragelse (ATAD), som er blevet implementeret i hele EU, herunder Luxembourg.

Under ATAD er fradragsretten for nettorenteudgifter begrænset til 30% af virksomhedens indtjening før renter, skat, afskrivninger og amortisering (EBITDA). Dette loft er designet til at forhindre overdrevne rentefradrag, der kan udhule skattegrundlaget. Luxembourgske SV’er nyder dog godt af visse undtagelser og lempelser, der kan afbøde virkningen af disse begrænsninger.

Hvis en SV’s nettorenteudgifter f.eks. ikke overstiger en bestemt tærskel, der i øjeblikket er fastsat til 3 millioner euro, gælder fradragsloftet ikke. Denne undtagelse er især fordelagtig for mindre securitiseringstransaktioner, hvor renteudgifterne er relativt lave. Derudover giver ATAD-reglerne mulighed for at fremføre ikke-fradragsberettigede renteudgifter og uudnyttet rentekapacitet, hvilket giver fleksibilitet til at styre rentefradragsretten over tid.

Fordele ved luxembourgske securitiseringskøretøjer

Luxembourg SV tilbyder flere fordele, der gør det til et overbevisende valg for securitiseringstransaktioner. Disse fordele stammer fra landets gunstige juridiske, lovgivningsmæssige og skattemæssige miljø, som tilsammen skaber en sikker og effektiv platform for securitisering.

  1. Retssikkerhed og investorbeskyttelse: Den luxembourgske securitiseringslov giver en klar og forudsigelig juridisk ramme, der sikrer beskyttelse af investorernes interesser. Konkursafstanden for SV’er kombineret med muligheden for at skabe adskilte afdelinger øger investeringssikkerheden og minimerer risikoen for krydskontaminering mellem forskellige securitiseringstransaktioner.
  2. Flexibility in Structuring: Luxembourg SVs can be structured as companies, partnerships, or funds, allowing for a high degree of customization to meet the specific needs of the transaction and the investors. The ability to issue a wide range of securities, from simple bonds to complex structured products, makes Luxembourg SVs suitable for various types of securitization deals.
  3. Skattemæssig behandling: Selvom der ikke er nogen særlig skatteordning for securitiseringsselskaber, giver Luxembourgs skattelovgivning mulighed for at fratrække udgifter i forbindelse med securitiseringsaktiviteter, hvilket potentielt kan reducere den skattepligtige indkomst til nul. Denne skatteneutralitet er en betydelig fordel, da den sikrer, at fordelene ved securitisering ikke mindskes af skatteforpligtelser.
  4. Overholdelse af lovgivningen og gennemsigtighed: Luxembourgs lovgivningsmiljø er kendetegnet ved høje standarder for overholdelse og gennemsigtighed. Kravet om, at SV’er skal have et registreret kontor og en ledelse i Luxembourg, sikrer, at de er underlagt jurisdiktionens lovgivningsmæssige tilsyn, som er i overensstemmelse med international bedste praksis. Dette øger SV’s troværdighed og giver investorerne sikkerhed.
  5. Strategisk placering og markedsadgang: Som medlem af Den Europæiske Union giver Luxembourg adgang til EU’s indre marked, hvilket giver betydelige muligheder for grænseoverskridende securitiseringstransaktioner. Landets strategiske placering kombineret med dets omdømme som et førende finanscenter gør det til en ideel base for securitiseringsaktiviteter rettet mod europæiske og globale investorer.

Luxembourgs securitiseringsselskaber tilbyder en robust og fleksibel struktur, der er velegnet til at opfylde behovene i moderne securitiseringstransaktioner. Principperne om konkursfjernhed og adskillelse af aktiver kombineret med en omfattende lovgivningsmæssig ramme og skattebehandling skaber et overbevisende miljø for securitisering. Selv om der er begrænsninger på rentefradrag under ATAD, kan luxembourgske SV’er stadig opnå skatteneutralitet gennem omhyggelig strukturering og planlægning.

Fordelene ved retssikkerhed, fleksibilitet, skatteeffektivitet og overholdelse af lovgivningen gør luxembourgske securitiseringsinstrumenter til en attraktiv mulighed for både investorer og udstedere. Da den globale efterspørgsel efter securitisering fortsætter med at vokse, er Luxembourg godt positioneret til at forblive en førende jurisdiktion for securitiseringsaktiviteter, der tilbyder en sikker og effektiv platform for adgang til kapitalmarkeder og styring af finansiel risiko.

Damalion supports you to setup your securitization vehicle in Luxembourg, Please contact your Damalion expert now.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. 

Damalion

The Luxembourg securitization: a good structure to attract investors — stable law, flexible compartments, clear CSSF perimeter, investor-oriented tax mechanics

For originators, asset managers, private credit funds, family offices, private equity, and corporates. This page explains the Luxembourg securitization framework in clear legal language.

Last updated:

Overview

Luxembourg runs a mature securitization regime based on the Securitization Law of 22 March 2004, modernized in 2022. Vehicles can be companies or funds. Compartments allow ring-fenced pools. Funding can be by debt, equity, or other instruments whose return depends on securitized risks.

Tax mechanics

  • Company-type vehicles are fully taxable (CIT and MBT). Payments and commitments to investors that depend on securitized risks are generally deductible if set in the articles or issuance terms. This gives practical neutrality.
  • No Luxembourg withholding tax on arm’s-length interest; qualifying note payments are typically made gross.
  • Minimum net wealth tax applies based on balance sheet and asset mix.
  • Transfer pricing applies to related-party servicing, funding, hedging, and guarantees. Use arm’s-length terms with support files.

ATAD interest limitation (Article 168bis LITL)

  • Exceeding borrowing costs are deductible up to the higher of 30% EBITDA or EUR 3,000,000 per year.
  • Possible reliefs: stand-alone entity, financial undertakings, public infrastructure, and grandfathering for certain pre-17 June 2016 loans (subject to modifications and strict conditions).
  • Carry-forward and carry-back rules apply under Luxembourg law for unused capacity and excess costs.
  • Assess the interest barrier together with investor-linked deductions to determine the residual tax base.

Hybrid mismatch and GAAR

  • ATAD 2 applies to associated-party and structured arrangements. It may deny deductions or require income inclusions where a mismatch arises.
  • Luxembourg’s GAAR applies. Structures must reflect valid commercial reasons and real risk transfer.
  • Substance: ensure effective management in Luxembourg and records that match the activities.

Structures and instruments

Topic Key points
Forms SA, Sàrl, SAS, SCS, SCSp, SENC, or securitization funds.
Financing Debt, equity, or other instruments whose return depends on securitized risks.
Ring-fencing Compartment segregation is statutory; cross-compartment support is possible if disclosed.
Ranking Legal subordination applies; terms can refine priorities within legal limits.
Insolvency Use limited recourse and non-petition wording consistent with Luxembourg law.
Reporting Annual accounts and, where required, audit; compartment information can be organized in the constitutional documents.

Practical cases of Luxembourg securitization

Across Europe and the United States, companies use Luxembourg structures to obtain competitive funding, isolate risk by compartment, and give professional investors clear access to defined cash flows. These concise, real-world style illustrations show how it works in practice.

# Country Country  Industry  Illustration
1 DE Germany Residential Real Estate A Berlin housing developer placed future rents into a Luxembourg company. Investors subscribed to notes by building compartment, refinancing construction while keeping risk ring-fenced.
2 FR France Commercial Real Estate A Paris office owner transferred long-term lease receivables to a Luxembourg vehicle. Legal segregation supported bankruptcy remoteness and tax-neutral mechanics at issuer level.
3 IT Italy Consumer Products An appliance maker securitized EU trade receivables. Medium-term notes replaced short bank lines; sales regions split into separate compartments to manage concentration.
4 ES Spain Renewable Energy A solar platform monetized 15-year PPAs via a Luxembourg fund. ESG-labelled tranches attracted EU institutions under clear disclosure and servicing standards.
5 GB United Kingdom Banking & Capital Markets A fintech lender consolidated performing consumer loans into a CSSF-supervised issuer. True-sale improved capital ratios and opened the door to EU investors.
6 NL Netherlands Transport An aircraft lessor securitized lease payments by fleet. Each series ran in its own compartment, giving clean recourse and simple reporting.
7 CH Switzerland Telecommunications & Media A streaming platform securitized subscription revenues. Monthly inflows became predictable coupon payments while IP remained at the operating company.
8 AT Austria Power & Utilities A grid operator securitized regulated tariff receivables. Compartment terms mirrored regulator updates; investors took compartment-only risk.
9 BE Belgium Technology A SaaS vendor packaged multi-year licenses into a Luxembourg fund. Recurring revenue supported rated notes purchased by pension funds.
10 SE Sweden Renewable Energy A wind operator securitized merchant output under floor-price PPAs. Investors benefited from limited recourse and gross-of-withholding note payments.
11 NO Norway Oil, Gas & Chemicals An offshore service group funded vessel upgrades via profit-participating notes issued by a Luxembourg compartment, ring-fenced from other assets.
12 FI Finland Sustainable Finance Energy-efficiency receivables were pooled under a Luxembourg fund. The set-up combined ATAD-compliant neutrality with ESG reporting.
13 PL Poland Industrial Manufacturing A machinery exporter securitized vendor leases by client tier in separate compartments, reducing concentration and smoothing cash flows.
14 CZ Czech Republic Urban Development A toll-road concessionaire monetized usage fees through a Luxembourg issuer, with transparent covenants and back-up servicing.
15 HU Hungary Engineering & Construction A contractor securitized receivables from EU-funded infrastructure, giving investors defined exposure and milestone-based reporting.
16 GR Greece Tourism & Hospitality A hotel group pooled management fees across island resorts into one compartment. Liquidity reserves bridged seasonality.
17 PT Portugal Restaurants A franchise operator securitized royalties and supply invoices. The structure lowered borrowing costs and created steady coupons.
18 IE Ireland Aviation An aircraft lessor moved a narrow-body portfolio into a Luxembourg vehicle using multi-compartment governance to match aircraft risk.
19 DK Denmark Logistics A shipping group securitized charter receivables, replacing bank debt with investor notes backed by freight contracts and vessel-level security.
20 US United States Life Sciences A medtech company monetized royalty rights on patented devices via a Luxembourg fund, giving European investors exposure to predictable IP revenues.

Frequently asked questions

1) What is a Luxembourg securitization vehicle?
An entity formed under the Securitization Law to acquire or assume risks and to finance itself by issuing instruments whose return depends on those risks.
2) Which legal forms are available?
Companies (SA, Sàrl, SAS), partnerships (SCS, SCSp, SENC), and securitization funds. The choice depends on governance and investor needs.
3) When is CSSF authorization required?
When the vehicle issues to the public on a continuous basis. Offers to professional clients and denominations of at least EUR 100,000 are generally outside the “public” scope.
4) What does “continuous” issuance mean?
As a general rule, more than three issues in a twelve-month period.
5) Can the vehicle hold assets directly?
Yes. Direct and indirect holding are allowed if aligned with the securitization purpose and set in the documentation.
6) Is active management permitted?
Permitted for risks linked to debt instruments where there is no public issuance. Otherwise, management is limited to what is necessary for the securitization.
7) How does ring-fencing work between compartments?
Assets and liabilities are allocated to each compartment. Creditors have recourse only to that compartment unless otherwise disclosed.
8) How are payment priorities set?
Statutory subordination applies between equity/beneficiary interests and debt. Issuance terms may refine priorities within legal limits.
9) Are payments to investors deductible?
Payments and commitments whose amount depends on securitized risks are generally deductible at issuer level if specified in the articles and issuance terms.
10) Is there Luxembourg withholding tax on interest?
No Luxembourg withholding tax applies to arm’s-length interest. Payments on qualifying notes are typically made gross.
11) How does Article 168bis LITL apply?
Exceeding borrowing costs are deductible up to the higher of 30% EBITDA or EUR 3,000,000 per year. Exemptions and carry rules apply under set conditions.
12) Do ATAD 2 hybrid-mismatch rules apply?
Yes. Where a mismatch arises with associated parties or via a structured arrangement, deductions may be denied or income included.
13) What substance is expected in Luxembourg?
Effective management in Luxembourg and records that match the business and risks (board, decisions, files, and contracts).
14) Do transfer pricing rules apply?
Yes. Related-party servicing, funding, hedging, and guarantees must be at arm’s length and supported by analysis.
15) Are listings required?
No. Listing is optional and depends on investor demand or deal terms.
16) Are audits required?
Annual accounts are required. Audits apply in line with Luxembourg law and the legal form. Compartment disclosures can be organized in the articles.
17) May the vehicle grant third-party security?
Yes, when the security supports obligations connected to the securitization and this is disclosed.
18) How are derivatives used?
Hedging is common to align asset and liability risks. Contracts must serve the securitization purpose and meet transfer-pricing standards if related parties are involved.
19) What is the VAT treatment?
The issuance of securities is outside Luxembourg VAT. Certain services may have VAT effects depending on their nature and place-of-supply rules.
20) Can compartments provide cross-support?
Yes, if the cross-support is clearly disclosed. Otherwise, liabilities remain compartment-limited.

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