The Luxembourg special limited partnership (SLP) is a highly tax efficient investment vehicle that offers a high degree of contractual flexibility and cost efficiency (as the fundraising and investment structuring is in one jurisdiction). The SLP is exempt from income and wealth taxes and is only subject to an annual 0.01% subscription tax (which is calculated on the net asset value).
The SLP is composed of at least one general partner and one or several limited partner(s). While the general partner is jointly and separately liable for any commitments of the company, the liability of the limited partner is limited to the extent of their contributed participation interest. The SLP’s contractual flexibility allows the general partner and limited partner to define all the terms and conditions in the relevant limited partnership agreement (including the operational and organisational detail).