Use the Luxembourg Private Wealth Management Company to protect your family assets and preserve your wealth

SPF (société de gestion de patrimoine familial), is a Luxembourg private wealth management vehicle that allows individuals to structure their estate in a simple, adaptable, unregulated, and tax-efficient manner and for several purposes, thereby appealing to several types of investors. 

The SPF is solely designed for investors managing their private wealth, thus the shares of the SPF cannot be used for public placement and cannot be quoted on a stock exchange. The SPF is an unregulated entity and does not mandate any business license. 

Legal Framework 

The SPF may be set up as either of the following in Luxembourg: 

• a private limited company (société à responsabilité limitée – SARL), 
• a public limited company (société anonyme – S.A.), 
• a partnership limited by shares (société en commandite par actions – S.C.A.) or, 
• a cooperative company (société cooperative – S.C.) organised as a S.A. 

The requirements respecting incorporation, minimum share capital, representation, annual general meetings, annual accounts, etc., shall apply according to the particularities of the chosen legal form, but with meaningful structuring options in order to offer tailor-made vehicles to investors. 

The SPF Eligible activities and Objectives 

Objective

The corporate goal of an SPF is restricted to the acquisition, holding, management, and disposal of financial instruments, cash, and other types of assets. The Luxembourg SPF cannot execute any type of commercial activity. The Luxembourg SPF may develop, acquire, manage and sell a portfolio of securities granted by public or private organizations in Luxembourg or overseas. An SPF can borrow from a banking institution or a shareholder. 

SPF activities 

Authorized activities 

The Luxembourg SPF is authorized to hold equity stakes given that it does not impede the management of the company in which such stakes are held by the SPF.

Besides the withholding on interest under the Savings Directive, dividends and interests paid to non-residents will not be prone to any Luxembourg tax. Earnings realized by non-residents due to the sale of shareholding in an SPF or due to the liquidation of an SPF will not be subject to tax in Luxembourg. 

Due to its unique tax status, the SPF cannot access benefits permitted under double tax treaties. 

Prohibited activities 

There are several prohibited activities subject to the SPF, these include, but not exclusively: 

• Granting of loans: the SPF is not authorized to render any kind of services, including the granting of interest-bearing loans. But it may make cash advances or guarantee the liabilities of a company in which it holds participation, but only on a secondary basis and without remuneration. 
• Holding real estate: the SPF may not invest directly in real estate, but, it may attain holdings in corporations or other non-transparent entities that hold real estate. 
• Holding intellectual property: the SPF is not authorized to hold any type of intellectual property directly. 

SPF Eligible investors 

• Private individuals managing their private wealth, 
• Patrimonial entities acting for one or several individuals (trusts, family offices), 
• Pure Holdings: this can be a shareholder of an SPF in case the shareholders of this holding are individuals. But such holding must not perform any commercial activity 
• Intermediates: these are entities acting on behalf of private individuals. Fiduciaries can be qualified as intermediaries also. 

The tax regime for the Luxembourg family wealth management company 

Regarded as a specific extension of an individual’s private property and not being involved in commercial activities, an SPF is a tax-neutral company, which is exempt from corporate income tax, municipal business tax, and net wealth tax. 

In addition, the following tax statutes apply to an SPF: 

• Distribution of dividends to investors is not subject to any withholding tax 
• There is no withholding tax on interest payment, unless the EU Savings Directive applies. 
• No tax on capital gains and liquidation revenue earned by non-resident investors. 
• Subscription tax at a rate of 0.25% computed on the value of paid-up share capital plus share premium applies. 
• No access to tax treaties and European directives, and it’s not subject to VAT obligations 

From a taxation level of view, the SPF is a very beneficial structure, nevertheless, it must also comply with various tax requirements, as assigned by the Luxembourg authorities. 

Being one of the important financial centers in the world, the Grand Duchy of Luxembourg offers an attractive legal framework to investors and entrepreneurs wishing to entrust a dedicated corporate structure with the management of all or part of their assets. 

For the formation and management of your Luxembourg corporate structures, let’s go ahead and contact your Damalion expert now, and let us help.  

Use the Luxembourg Private Wealth Management Company (SPF) to protect family assets and preserve wealth — who can use it, allowed activities, legal forms, tax points for 2025, banking expectations, costs, and timing.

For private individuals, families, family offices and holding structures • Damalion helps you prepare documents and coordinate the process with providers. Acceptance by service providers and banks is always their decision.

Last updated:

What is an SPF?

An SPF (société de gestion de patrimoine familial) is a Luxembourg company used to hold and manage private financial assets. It does not run commercial activities and does not provide services to third parties. It suits simple, private asset holding with clear governance.

Legal forms you can choose

• SA (public limited company)
• Sàrl (private limited company)
• SCA (partnership limited by shares)
• Cooperative company organised as an SA

The choice affects share capital, governance, meetings, and accounts. Name must include “société de gestion de patrimoine familial” or “SPF”.

Who may invest

• Private individuals managing their own wealth
• Patrimonial entities acting for individuals (e.g., trusts, foundations)
• Pure holding companies owned by individuals
• Intermediaries acting on behalf of individuals (permitted under the law)

What the SPF can hold (and what it cannot)

Topic	Allowed	Not allowed
Purpose	Holding and managing financial assets for private wealth	No commercial activity; no services to third parties
Assets	Shares, bonds, funds, cash and similar financial instruments	Direct ownership of real estate; direct ownership of intellectual property
Financing	May borrow from banks or shareholders	No interest-bearing lending to third parties (only non-remunerated, ancillary support to participations)
Subsidiaries	May hold equity stakes without managing the subsidiary	No active management of operating companies

Tax points

• No corporate income tax, no municipal business tax, no net wealth tax.
• Subscription tax: 0.25% on paid-up share capital + share premium + the portion of debts exceeding eight times that total; minimum EUR 1,000, maximum EUR 125,000 per year.
• No withholding tax on distributions by the SPF (subject to applicable rules in the investor’s country).
• No access to double tax treaties or EU directives for the SPF itself.
• Electronic filing for annual returns/certificates applies. Administrative fines may apply in case of breaches.

Governance, controls, and filings

• Keep clear ownership records and signatory rules.
• Maintain accounting and annual accounts per chosen legal form.
• Provide the annual certificate confirming investor eligibility and compliance.
• File and pay subscription tax on time (quarterly payments are standard in practice).
• Use a name that includes “société de gestion de patrimoine familial” or “SPF”.

Banking expectations

Banks review ownership, purpose, and expected activity. Be ready with: ID and address documents, tax residency, source of funds, company formation documents, ownership chart, and clear payment patterns (amounts, currencies, countries, counterparties).

Costs and timelines

• Setup and notary costs depend on the legal form and share capital.
• Running costs: accounting, registered office, filings, and subscription tax (minimum EUR 1,000 per year from 2025).
• Typical timing from complete file to company registration and bank account: a few days to a few weeks, depending on documents and reviews.

Related reading

• What is the Luxembourg Private Wealth Management company (SPF)
• Advantages of the Luxembourg SPF
• Understanding the Luxembourg SPF
• More articles on Wealth Management

Frequently asked questions

1) Who may be a shareholder of an SPF?

Only eligible investors: private individuals managing their wealth, patrimonial entities acting for individuals (e.g., trusts), pure holding companies owned by individuals, and intermediaries acting for individuals under the law.

2) Which legal forms are permitted?

SA, Sàrl, SCA, or a cooperative company organised as an SA. Partnerships are excluded.

3) Is the SPF allowed to run commercial activities?

No. Its object is limited to acquiring, holding, managing, and disposing of financial assets. No commercial activity and no services to third parties.

4) Can an SPF own real estate directly?

No. Direct ownership of real estate is not permitted. Indirect holding through certain entities may be possible, subject to rules and advice.

5) May the SPF grant loans?

It may not act as a lender for consideration. Non-remunerated, ancillary support (e.g., guarantees or cash advances) to its participations is possible within limits.

6) What is the subscription tax in 2025?

0.25% on paid-up capital and share premium plus the portion of debts exceeding eight times that amount, with a minimum of EUR 1,000 and a maximum of EUR 125,000 per year.

7) How is the debt portion measured?

Debts exceeding eight times the paid-up capital plus share premium are included in the tax base. Clarifications apply to which debts are considered for the year start.

8) Are there withholding taxes on SPF distributions?

Luxembourg does not levy withholding tax on distributions by the SPF. Investor country rules still apply.

9) Does the SPF access tax treaties or EU directives?

No. The SPF does not benefit from double tax treaties or EU directives.

10) What filings are required?

Annual accounts as per legal form, annual certificate confirming compliance and eligible investors, and the subscription tax return with timely payment.

11) Is electronic filing required?

Yes. Electronic filing for returns/certificates applies from 2025.

12) Are there administrative fines?

Yes. The AED may impose fines for specific breaches (e.g., naming, filings, payments), with higher fines for serious non-compliance.

13) Must the company name include “SPF”?

Yes. The corporate name must include “société de gestion de patrimoine familial” or “SPF”.

14) How are payments scheduled?

Subscription tax is generally settled on a quarterly schedule during the year, following practice and guidance.

15) What about VAT?

The SPF is not subject to VAT for its holding activity.

16) Can the SPF manage a subsidiary’s operations?

No. It may hold participations but must not manage the subsidiary’s commercial activity.

17) Are actively managed ETFs relevant to the SPF?

SPFs may hold a wide range of financial instruments, subject to the SPF scope. Specific exemptions and market rules may affect instruments; seek tailored advice.

18) Are AML/KYC checks required?

Yes. Banks and service providers apply AML/CFT checks. Clear source-of-funds and ownership evidence is needed.

19) How long does setup take?

With a complete file, company formation is fast. Banking timelines depend on review of documents and activity profile.

20) When should families consider an SPF?

When they need a private, non-commercial holding vehicle for financial assets, with simple governance, predictable taxation, and clear separation from operating businesses.