The law of 19 December 2020 introduced this mandatory reporting to prepare for the collection of the real estate levy, which applies to income derived from real estate located in Luxembourg. In this respect, the Luxembourg tax authorities published a circular on 20 January 2022 to clarify certain concepts relevant to this obligation and the real estate levy (Circulaire PRE_IMM n°1 du 20 janvier 2022).
Who is concerned by this reporting obligation?
- All Luxembourg investment funds that are “opaque” (for instance, those in the form of an SA, Sà rl or SCA) and that are covered by the Luxembourg laws on UCI Part II funds, SIFs or RAIFs, irrespective of whether or not they held real estate assets located in Luxembourg during the 2020 and 2021 calendar years (directly or via tax-transparent entities).
- Luxembourg investment funds covered in point 1 that changed their legal form from an “opaque” vehicle to a “transparent” vehicle (for instance, by converting into an SCS, SCSp or FCP) during the 2020 and 2021 calendar years and that held at least one Luxembourg real estate asset at the time of the change of legal form (directly or via a tax-transparent entity).
What needs to be done?
The concerned investment funds must provide information on their holding/non-holding of Luxembourg real estate assets by filing a one-off electronic report (Statement of information on the holding or the absence of holding of real estate located in Luxembourg or on the change of legal form) via the MyGuichet.lu portal. Meeting this information obligation is a preliminary step in determining whether these funds are subject to the real estate levy.
Via the MyGuichet.lu portal, concerned investment funds with real estate assets located in Luxembourg have to declare their Luxembourg-source real estate income for each calendar year (Statement on the levy on real estate) and pay the 20% real estate levy by respectively 31 May and 10 June of the following calendar year. Through the declaration, these investment funds are deemed to have complied with the aforementioned statement of information.
When is the deadline?
The statement of information or statement on the real estate levy must be filed by 31 May 2022.
If a concerned investment fund fails to report on time, the Luxembourg tax administration can impose a lump-sum penalty of EUR 10,000.
How can we help?
The Tax Partners and your usual contacts at Arendt & Medernach are at your disposal to further assess and advise on the above rules and help you file the statement of information or the statement on the real estate levy via the MyGuichet.lu portal.