Luxembourg MPs: Law for alternative funds on the way!

Luxembourg MPs: Law for alternative funds on the way!

On November 4, 2025, Luxembourg MPs spoke out in favor of strengthening alternative investment funds. CSV MP Laurent Mosar supports a corresponding bill that aims to create a clear legal framework for these special forms of investment. The aim of the law is to specify the regulations on profit sharing for managers of alternative funds.

Alternative funds cover specific investment areas such as jewelry, paintings or racehorses. These investments involve higher risks and at the same time offer opportunities for above-average returns. André Bauler, MP of the DP, highlights the need to increase the competitiveness of the sector and attract qualified personnel. The draft law aims to further increase the attractiveness of the Luxembourg financial center.

Clarity and tax incentives

The current legislation differs in the interpretation of the regulations on excess return sharing. In order to eliminate these uncertainties, a new text is intended to provide more legal certainty for fund managers. In this context, Mosar is also calling for tax incentives to make investing in alternative funds more attractive.

One of the key innovations of the law is flexibility for fund managers; In the future, they may also be employed by other companies while continuing to work in Luxembourg. This adjustment is intended to help specialists in the alternative funds sector to become better qualified and to remain in the country.

The way forward

MEPs agree that strengthening alternative funds plays a crucial role in further developing the financial landscape in Luxembourg. The planned legal changes are intended not only to address existing problems, but also to create new incentives to sustainably promote competitiveness. Through close cooperation between legislation and the financial sector, Luxembourg could once again be positioned as an attractive location for investments.