Key updates include:

• Broader eligibility for beneficiaries, extending beyond AIFM employees to include advisors, independent directors and other service providers.
• Two distinct tax treatments for carried interest, offering reduced rates for contractual arrangements and tax exemptions for participation-based arrangements under specific conditions.
• Alignment with the 2023-2028 coalition programme, underscoring Luxembourg's commitment to being a leading AIF hub.

The new regime should come into effect in 2026, phasing out its predecessor entirely. For current and prospective stakeholders, this promises a forward-thinking, accommodating environment that encourages both retention and recruitment of high-calibre professionals.

These changes aim to provide clarity, fairness, and a compelling reason to work in Luxembourg's AIF sector.

The official page to follow the progress of the bill through the legislative process, can be found here.