Securitisation
Why Luxembourg
Luxembourg remains one of the most attractive securitisation hubs in Europe. Its competitiveness lies in its offering of a robust but at the same time flexible legal and tax framework, making Luxembourg often more attractive than other European countries. This has been strengthened by the modernisation of the Luxembourg Securitisation Law early 2022 which now also allows for active management of debt portfolios and the refinancing through loans.
Luxembourg’s attractiveness is supported by several structural features:
- Compartment structures: Luxembourg securitisation vehicles can create legally segregated compartments within a single entity. Each compartment has ring-fenced assets and liabilities, allowing structures with numerous compartments, sometimes even exceeding several hundred.
- Broad securitisation scope: The Luxembourg Securitisation Law provides a wide definition of securitisation, allowing virtually any type of asset or risk to be securitised and refinanced through financial instruments.
- Flexibility compared to EU securitisation rules: While the EU framework focuses on credit-risk transfer and tranched structures, Luxembourg law allows a broader range of securitisation structures while still accommodating EU-compliant transactions.
- Open investor base: Luxembourg securitisation vehicles can be accessed by all types of investors without restrictions. A direct supervision by the Luxembourg regulator CSSF is only required when a continuous issue to the public occurs, which is not often the case.
- Efficient structuring tool: Luxembourg securitisation vehicles provide an efficient platform for financing and investment structuring, offering cost efficiency and fast time-to-market.
Evolution of Luxembourg securitisation vehicles
Securitisation Companies and Securitisation Funds
Creation, Liquidation and Total Active of entities by year
Source: ECB Database, CSSF, RCSL, PwC analysis
Who we are?
Our PwC Luxembourg Securitisation Core Group brings together a highly specialised team of partners, directors and professionals dedicated to securitisation. Drawing on deep technical expertise across audit, tax and consulting, we support clients throughout the full lifecycle of their structures. With a strong understanding of the Luxembourg market and the European regulatory landscape, we are committed to helping you navigate complexity and achieve your objectives with confidence.
Our global presence allows us to provide all audit and audit related services for special purpose entities used for securitisations and structured finance transactions, such as:
- Statutory and contractual audits
- Limited Reviews and agreed-upon procedures
- Audit related services, such as accounting advice and support on capital market transactions
In every case, the PwC audit and audit related service is underpinned by our deep industry knowledge, wide international experience, and global network of skilled professionals.
- Review of the existing securitisation structures from a corporate income tax (i.e. impact of the interest limitation rules) and VAT perspective to identify the areas of risk and propose remediation actions.
- Assisting clients to choose the most tax efficient securitisation structure among the different alternatives that are offered by the Luxembourg Securitisation Law of 22 March 2004.
- Provide tax compliance services like preparing and filing corporate tax returns for securitisation companies, FATCA and CRS reporting obligations, VAT registrations, preparing and filing VAT returns.
- Review of the existing securitisation structures from an eligibility perspective under the Securitisation Regulation and UCITS Directive
- Assist Management Companies and AIFMs to implement procedures and processes when the funds they manage invest in securitisation structuresAssist on CSSF filings in relation to the amended Article 4 of the
- Securitisation Regulation
Related content
Contact us
Holger von Keutz
Assurance Partner, Securitisation Leader, PwC Luxembourg
Tel: +352 49 48 48 2383
Xavier Balthazar
Advisory Partner, Asset Management, Regulatory & Compliance, PwC Luxembourg
Tel: +352 49 48 48 3299
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