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Clifford Chance
Briefings

Briefings

Luxembourg implements key tax updates impacting investment fund sector

14 October 2025

Luxembourg has recently reinforced its status as a premier hub for alternative investment funds ("AIFs") through two significant tax developments. The first is a reform of the carried interest tax regime, introducing greater clarity and competitiveness for fund managers and sponsors. The second is a welcome clarification of the reverse hybrid rule, providing essential guidance for fund structuring and compliance.

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