[{"data":1,"prerenderedAt":510},["ShallowReactive",2],{"navbar-cms-data":3,"footer-cms-data":112,"navbar-services-data":148,"$fXQn6ymsAK7-31PrZ98A6IOQ7h5Qzg1c2SJJvI3ZZP3M":372,"$fIGIZ8ON-c4-P3IILxOx9KVKJiOL6iARmB3lUiMeIc_w":411},{"success":4,"data":5},true,{"id":6,"slug":7,"label":8,"show_metadata":9,"content":10,"title":107,"description":107,"keywords":107,"robots_follow":108,"robots_index":109,"og_image_path":107,"created_at":110,"updated_at":111},1,"header_footer","Website: Header and Footer",0,{"section1_logo":11,"section1_btn_text":12,"section1_career_text":13,"section1_guide_text":14,"section2_logo":15,"section2_content":16,"section2_copyright":17,"section2_column_one":18,"section2_column_one_list":19,"section2_column_two":35,"section2_column_two_list":36,"section2_column_three":48,"section2_column_three_list":49,"section2_column_four":58,"section2_column_four_list":59,"section2_footer_nav_list":75,"section3_list":91},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/e63a0316-36b6-4bbe-815c-e4db53ab28cc.png","BGX LOGIN","https://careers.boldergroup.com/","https://resources.boldergroup.com/guides-library","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/7e7196ce-6209-410c-a54c-3cdae92fc035.png","Bolder Group is an independent global service provider of corporate, funds, governance and family wealth solutions to asset managers, corporations, multinationals, as well as ultra-high-net-worth individuals. Bolder is present in 20 countries across the Americas, EMEA and Asia.","© 2026 Bolder. All Rights Reserved","SERVICES",[20,23,26,29,32],{"title":21,"link":22},"Governance","/governance",{"title":24,"link":25},"Corporate","/corporate",{"title":27,"link":28},"Funds","/funds",{"title":30,"link":31},"Family Wealth","/family-wealth",{"title":33,"link":34},"Digital Assets","/digital-assets","ABOUT",[37,40,43,46],{"title":38,"link":39},"Who We Are","/about-us",{"title":41,"link":42},"Our People","/our-people",{"title":44,"link":45},"Our Locations","/locations",{"title":47,"link":13},"Careers","RESOURCES",[50,53,56],{"title":51,"link":52},"Blogs & Insights","/resources",{"title":54,"link":55},"Newsletter","https://resources.boldergroup.com/newsletter-subscription",{"title":57,"link":14},"Guides","GET STARTED",[60,63,66,69,72],{"title":61,"link":62},"Set Up Fund","/set-up-fund",{"title":64,"link":65},"Set Up SPV/Company","/set-up-company",{"title":67,"link":68},"Set Up Trust","https://boldergroup.com/set-up-trust-foundation",{"title":70,"link":71},"Get Governance Solutions","https://boldergroup.com/set-up-governance",{"title":73,"link":74},"Get a Cost Estimate","/get-cost-estimate",[76,79,82,85,88],{"title":77,"link":78},"Privacy Policy","/privacy-policy",{"title":80,"link":81},"Cookie Policy","/cookie-policy",{"title":83,"link":84},"Data Protection","/data-protection",{"title":86,"link":87},"Economic Substance","/economic-substance",{"title":89,"link":90},"Complaints","/complaints",[92,95,98,101,104],{"icon":93,"link":94},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/f7fac195-7b6f-4b23-a489-0bc594ee8542.png","https://www.linkedin.com/company/bolder-group/",{"icon":96,"link":97},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/f9a2d331-6b4f-40f2-b30c-ce5c8726ebfd.png","https://www.facebook.com/officialboldergroup/",{"icon":99,"link":100},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/b0222e84-6764-4ae2-ae3d-5dd563fd516e.png","https://www.instagram.com/officialboldergroup/",{"icon":102,"link":103},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/44b18fd3-d7c7-4390-812d-f3f8a3a96e66.png","https://www.youtube.com/@officialboldergroup",{"icon":105,"link":106},"https://boldergroup.sgp1.cdn.digitaloceanspaces.com/cms_images/d9f96d93-dce4-49f2-a121-7380bdd503fd.png","https://x.com/Bolder_Group",null,"follow","index","2025-09-10T22:32:40.000000Z","2026-02-12T07:34:33.000000Z",{"success":4,"data":113},{"id":6,"slug":7,"label":8,"show_metadata":9,"content":114,"title":107,"description":107,"keywords":107,"robots_follow":108,"robots_index":109,"og_image_path":107,"created_at":110,"updated_at":111},{"section1_logo":11,"section1_btn_text":12,"section1_career_text":13,"section1_guide_text":14,"section2_logo":15,"section2_content":16,"section2_copyright":17,"section2_column_one":18,"section2_column_one_list":115,"section2_column_two":35,"section2_column_two_list":121,"section2_column_three":48,"section2_column_three_list":126,"section2_column_four":58,"section2_column_four_list":130,"section2_footer_nav_list":136,"section3_list":142},[116,117,118,119,120],{"title":21,"link":22},{"title":24,"link":25},{"title":27,"link":28},{"title":30,"link":31},{"title":33,"link":34},[122,123,124,125],{"title":38,"link":39},{"title":41,"link":42},{"title":44,"link":45},{"title":47,"link":13},[127,128,129],{"title":51,"link":52},{"title":54,"link":55},{"title":57,"link":14},[131,132,133,134,135],{"title":61,"link":62},{"title":64,"link":65},{"title":67,"link":68},{"title":70,"link":71},{"title":73,"link":74},[137,138,139,140,141],{"title":77,"link":78},{"title":80,"link":81},{"title":83,"link":84},{"title":86,"link":87},{"title":89,"link":90},[143,144,145,146,147],{"icon":93,"link":94},{"icon":96,"link":97},{"icon":99,"link":100},{"icon":102,"link":103},{"icon":105,"link":106},{"success":4,"data":149},[150,183,210,247,304,332,369],{"id":6,"label":21,"slug":151,"services":152},"governance",[153,159,165,171,177],{"id":154,"title":155,"slug":156,"link":157,"overview":158},6,"AML & KYC Compliance Services","aml-kyc-compliance-services","/governance/aml-kyc-compliance-services","Enhancing compliance efficiency with tailored KYC and AML solutions for your business",{"id":160,"title":161,"slug":162,"link":163,"overview":164},7,"AMLCO / MLRO / DMLRO","amlco-mlro-dmlro","/governance/amlco-mlro-dmlro","Delegate your AML oversight and compliance to trusted registered officers",{"id":166,"title":167,"slug":168,"link":169,"overview":170},8,"Directorship & Officer Services","directorship-officer-services","/governance/directorship-officer-services","Enhancing corporate governance for compliance and effective decision-making",{"id":172,"title":173,"slug":174,"link":175,"overview":176},9,"Regulatory & Legislative Services","regulatory-legislative-services","/governance/regulatory-legislative-services","Navigate compliance with confidence, mimimise risks and achieve sustainable growth",{"id":178,"title":179,"slug":180,"link":181,"overview":182},10,"Automatic Exchange of Information (AEOI)","automatic-exchange-of-information-aeoi","/governance/automatic-exchange-of-information-aeoi","Expert assistance for global tax reporting requirements to keep you compliant",{"id":184,"label":24,"slug":185,"services":186},2,"corporate",[187,192,198,204],{"id":6,"title":188,"slug":189,"link":190,"overview":191},"Company & SPV Structuring","company-spv-structuring","/corporate/company-spv-structuring","Simplifying corporate structuring in a complex regulatory landscape",{"id":193,"title":194,"slug":195,"link":196,"overview":197},3,"Corporate & Secretarial Services","corporate-secretarial-services","/corporate/corporate-secretarial-services","Managing the administrative tasks so you can focus on strategy and innovation",{"id":199,"title":200,"slug":201,"link":202,"overview":203},4,"Business Support & Market Entry","business-support-market-entry","/corporate/business-support-market-entry","Streamlining complex global setup and compliance for fast, successful market entry",{"id":205,"title":206,"slug":207,"link":208,"overview":209},5,"Financial Accounting & Reporting","financial-accounting-reporting","/corporate/financial-accounting-reporting","Delivering financial insights to drive strategic and informed business decisions",{"id":193,"label":27,"slug":211,"services":212},"funds",[213,218,224,230,236,241],{"id":184,"title":214,"slug":215,"link":216,"overview":217},"Hedge Funds","hedge-funds","/funds/hedge-funds","Back-office functions that reduce administrative and compliance burdens",{"id":219,"title":220,"slug":221,"link":222,"overview":223},11,"Real Estate Funds","real-estate-funds","/funds/real-estate-funds","Tech-enabled administration and transacton monitoring of your real estate funds",{"id":225,"title":226,"slug":227,"link":228,"overview":229},12,"PE/VC Funds","pevc-funds","/funds/pevc-funds","Expert administration for closed-end private equity funds, managing the entire lifecycle",{"id":231,"title":232,"slug":233,"link":234,"overview":235},13,"Fund of Funds","fund-of-funds","/funds/fund-of-funds","Layered reporting and streamlined FoF administration",{"id":237,"title":33,"slug":238,"link":239,"overview":240},14,"digital-assets","/funds/digital-assets","Crypto-native fund support with built-in compliance and control",{"id":242,"title":243,"slug":244,"link":245,"overview":246},15,"Managed Accounts","managed-accounts","/funds/managed-accounts","Operational backbone for your investment strategy",{"id":199,"label":30,"slug":248,"services":249},"family-wealth",[250,256,262,268,274,280,286,292,298],{"id":251,"title":252,"slug":253,"link":254,"overview":255},16,"Company Formation & Management Services","company-formation-management-services","/family-wealth/company-formation-management-services","Grow your wealth through expertly managed corporate structures across jurisdictions",{"id":257,"title":258,"slug":259,"link":260,"overview":261},17,"Estate & Multigenerational Planning","estate-multigenerational-planning","/family-wealth/estate-multigenerational-planning","Secure your family's future with strategic planning for lasting stability and peace of mind",{"id":263,"title":264,"slug":265,"link":266,"overview":267},18,"Family Office Platform & Administration","family-office-platform-administration","/family-wealth/family-office-platform-administration","Your central, scalable platform for your family office needs and administrative solutions",{"id":269,"title":270,"slug":271,"link":272,"overview":273},19,"Development of Philanthropic Strategies","development-of-philanthropic-strategies","/family-wealth/development-of-philanthropic-strategies","Creating a strategy that maximises your wealth to leave a meaningful legacy and lasting impact",{"id":275,"title":276,"slug":277,"link":278,"overview":279},20,"Family Wealth Governance Solutions","family-wealth-governance-solutions","/family-wealth/family-wealth-governance-solutions","Clear governance frameworks, family charters and conflict-resolution protocols to sustain unity and transparency",{"id":281,"title":282,"slug":283,"link":284,"overview":285},21,"Financial Reporting & Accounting for Private Wealth","financial-reporting-accounting-for-private-wealth","/family-wealth/financial-reporting-accounting-for-private-wealth","Get a clear picture of your total assets with precise bookkeeping and timely reporting",{"id":287,"title":288,"slug":289,"link":290,"overview":291},23,"The Silver Lining Service","the-silver-lining-service","/family-wealth/the-silver-lining-service","Wealth transfer planning for the Silver Generation",{"id":293,"title":294,"slug":295,"link":296,"overview":297},24,"Sports & Entertainment Desk","sports-entertainment-desk","/family-wealth/sports-entertainment-desk","Lifestyle service for athletes and artists",{"id":299,"title":300,"slug":301,"link":302,"overview":303},25,"Lifestyle Management","lifestyle-management","/family-wealth/lifestyle-management","Highly exclusive concierge services for HNWIs",{"id":205,"label":305,"slug":306,"services":307},"Annual Financial Return","annual-financial-return",[308,314,320,326],{"id":309,"title":310,"slug":311,"link":312,"overview":313},26,"Sign Up with Email","sign-up-with-email","/annual-financial-return/sign-up-with-email","Create your BGX account using your email address as your preferred authentication method.",{"id":315,"title":316,"slug":317,"link":318,"overview":319},30,"Sign Up with SMS","sign-up-with-sms","/annual-financial-return/sign-up-with-sms","Sign up to BGX with SMS as your preferred authentication method.",{"id":321,"title":322,"slug":323,"link":324,"overview":325},31,"Sign Up with Authenticator App","sign-up-with-authenticator-app","/annual-financial-return/sign-up-with-authenticator-app","Sign up to BGX with an authenticator app as your preferred authentication method.",{"id":327,"title":328,"slug":329,"link":330,"overview":331},32,"How to Complete Your AFR","how-to-complete-your-afr","/annual-financial-return/how-to-complete-your-afr","Activities and requirements to complete your annual financial return.",{"id":154,"label":86,"slug":333,"services":334},"economic-substance",[335,339,345,351,357,363],{"id":336,"title":310,"slug":311,"link":337,"overview":338},22,"/economic-substance/sign-up-with-email","Create your BGX account using your email address as your primary sign-in method.",{"id":340,"title":341,"slug":342,"link":343,"overview":344},33,"How to Sign Up to BGX with Email","how-to-sign-up-to-bgx-with-email","/economic-substance/how-to-sign-up-to-bgx-with-email","Sign up to BGX with your email as your preferred authentication method.",{"id":346,"title":347,"slug":348,"link":349,"overview":350},34,"How to Sign Up to BGX with SMS","how-to-sign-up-to-bgx-with-sms","/economic-substance/how-to-sign-up-to-bgx-with-sms","Sign up to BGX with your SMS as your preferred authentication method.",{"id":352,"title":353,"slug":354,"link":355,"overview":356},35,"How to Sign Up to BGX with Authenticator App","how-to-sign-up-to-bgx-with-authenticator-app","/economic-substance/how-to-sign-up-to-bgx-with-authenticator-app","Sign up to BGX with your authenticator app as your preferred authentication method.",{"id":358,"title":359,"slug":360,"link":361,"overview":362},36,"Guide to Relevant Activities","guide-to-relevant-activities","/economic-substance/guide-to-relevant-activities","Assess if your activities are subject to Economic Substance regulations.",{"id":364,"title":365,"slug":366,"link":367,"overview":368},37,"Guide to Reporting Periods and Deadlines","guide-to-reporting-periods-and-deadlines","/economic-substance/guide-to-reporting-periods-and-deadlines","When should you file your ES requirements?",{"id":160,"label":370,"slug":238,"services":371},"Digital Asset Services",[],{"data":373,"navigation":406},{"id":374,"title":375,"slug":376,"type":377,"overview":378,"content":379,"featuredImage":107,"thumbnail":380,"imageAlt":381,"readTime":199,"status":382,"publishedAt":383,"is_featured":4,"metaDescription":107,"contactFullName":107,"contactPosition":107,"contactEmail":107,"contactLinkedin":107,"contactImagePath":107,"contactDetails":107,"author":384,"createdAt":386,"relatedItems":387},3788,"Luxembourg AIFM Law Proposal: Multi-Compartment Structures for SCS and SCSp Funds","luxembourg-aifm-law-proposal-multi-compartment-structures-for-scs-and-scsp-funds","update","Luxembourg's proposed AIFM Law amendments could allow qualifying SCS and SCSp funds to use multi-compartment structures outside dedicated fund regimes.","\u003Ch1>\u003Cspan style=\"color: rgb(0, 0, 0);\">Luxembourg AIFM Law Proposal: Multi-Compartment Structures for SCS and SCSp Funds\u003C/span>\u003C/h1>\u003Cp>\u003Cspan>\u003Cstrong>\u003Cem>Executive Summary:\u003C/em>\u003C/strong>\u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cem>The Luxembourg Government has submitted a bill to amend the Alternative Investment Fund Managers (AIFM) Law, which would permit SCS and SCSp investment funds to operate as umbrella structures with multiple compartments.  \u003C/em>\u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cem>The amendments would create additional structuring options to Luxembourg’s existing dedicated investment funds, such as a RAIF, SIF, SICAR, or Part II UCI.  \u003C/em>\u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cem>Benefits of the new proposal include no risk diversification requirement or professional investor restriction, potentially leading to a reduction in structuring, administration, and maintenance costs.  \u003C/em>\u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>Luxembourg has proposed amendments to the AIFM Law that would expand the structuring options available to alternative investment funds. If adopted, the reforms would allow qualifying SCS and SCSp vehicles to operate as umbrella structures with multiple legally segregated compartments.   \u003C/span>\u003C/p>\u003Cp style=\"text-align: left;\">\u003Cspan>This would give qualifying partnerships access to compartmentalisation without requiring them to adopt a dedicated fund regime such as a RAIF, SIF, SICAR, or Part II UCI.  \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: left;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">What is the new Luxembourg AIFM proposal?\u003C/span>\u003C/h2>\u003Cp style=\"text-align: left;\">\u003Cspan>On 30 July 2026, the Luxembourg Government submitted a bill that would allow common limited partnerships (sociétés en commandite simple, or SCS) and special limited partnerships (sociétés en commandite spéciale, or SCSp) qualifying as alternative investment funds to operate as umbrella structures with multiple compartments. \u003C/span>\u003C/p>\u003Cp style=\"text-align: left;\">\u003Cspan>Umbrella structures are currently associated with Luxembourg's dedicated investment fund regimes. Under the proposal, qualifying partnership vehicles could also establish multiple compartments, with the assets and liabilities of each compartment segregated from those of the others, subject to the bill's conditions. \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: left;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Why is Luxembourg Expanding Access to Multi-Compartment Structures?\u003C/span>\u003C/h2>\u003Cp style=\"text-align: left;\">\u003Cspan>The latest proposal is part of an ongoing effort from Luxembourg to improve its fund structuring offering and maintain its competitiveness as a leading fund domicile. Extending compartment structures to allow SCS and SCSps will provide fund managers with more choice when structuring alternative investment vehicles.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: left;\">\u003Cspan>The reform will make Luxembourg a more attractive alternative to other overseas vehicles that have already implemented multi-compartment segregation.  \u003C/span>\u003C/p>\u003Ch2>\u003Cspan style=\"color: rgb(0, 0, 0);\">What are the Eligibility Requirements for SCS and SCSp Structures?\u003C/span>\u003C/h2>\u003Cp>\u003Cspan>Alternative investment funds, such as an SCS or SCSp, will be allowed to establish multiple compartments, subject to: \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>Appointing an alternative investment fund manager based in Luxembourg or another EU Member State and complying with the AIFM Law. \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>The umbrella structure must be clearly established inside the fund’s constitutional documents. \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>Each compartment must have an investment policy before investor capital is committed.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>Existing investor disclosure requirements under the AIFM Law still apply.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>The bill remains subject to the Luxembourg legislative process. Its final scope, conditions and effective date may therefore change before adoption.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: left;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">What are the Advantages for Fund Managers?\u003C/span>\u003C/h2>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cstrong>Access to multi-compartment structures without a reserved investment fund regime\u003C/strong> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>The proposal would allow SCS and SCSp funds to create segregated compartments without opting for a dedicated regime such as a RAIF, SIF, SICAR or Part II UCI. For suitable strategies, this could offer a more flexible and potentially more cost-efficient structuring route, depending on the fund's regulatory profile and operating model. \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cstrong>No risk diversification requirement\u003C/strong> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>Unlike certain existing Luxembourg fund regimes, the proposed compartment framework would not impose a risk-diversification requirement. This could make it suitable for concentrated investment strategies, subject to the fund's investment policy, investor disclosures and other applicable requirements. \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cstrong>No professional investor limitation\u003C/strong> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>Compartments can be created without the notion of professional investors that applies to the existing Luxembourg funds. This may increase the range of investors able to use these structures.  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: left;\">\u003Cspan>\u003Cstrong>Operational efficiency\u003C/strong> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: left;\">\u003Cspan>Managing multiple investment strategies within a single umbrella structure can streamline fund administration and potentially reduce structuring, administrative, and maintenance costs.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: left;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Ensure Compliance and Optimise Your Luxembourg Fund Structures with Bolder\u003C/span>\u003C/h2>\u003Cp style=\"text-align: left;\">\u003Cspan>Bolder provides governance, compliance and corporate services to help fund managers assess and respond to developments affecting Luxembourg alternative investment funds. Our specialists can support the review of operating models, governance arrangements and service requirements in light of proposed changes to the AIFM Law. \u003C/span>\u003C/p>\u003Cp style=\"text-align: left;\">\u003Cspan>Whether you are assessing AIFMD II requirements or considering how the proposed multi-compartment framework could affect an SCS or SCSp vehicle, our specialists can help you evaluate the governance, compliance and operational implications. Get in touch with \u003C/span>\u003Ca target=\"_blank\" rel=\"noreferrer noopener\" class=\"text-blue-600 underline Hyperlink SCXW173648433 BCX8\" href=\"https://boldergroup.com/contact-us/luxembourg\">\u003Cspan>\u003Cu>our Bolder experts\u003C/u>\u003C/span>\u003C/a>\u003Cspan> to discuss your Luxembourg fund structure.\u003C/span>\u003C/p>","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/BH_Luxembourg-AIFM-Law-Proposal.jpg","Luxembourg AIFM Proposal: SCS and SCSp Compartments","published","2026-10-05T14:01:00+08:00",{"id":166,"name":385},"Gayzell","2026-10-02T13:16:50+08:00",[388,394,400],{"id":389,"title":390,"slug":391,"type":377,"image":392,"date":393},3030,"Bolder Group appoints new Global Head of Funds","bolder-group-appoints-new-global-head-of-funds","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/NXvuXm76qtnN38BUbt2LrodXC53z3Wcm9Y2faTpM.jpg","2022-10-24T08:38:00+08:00",{"id":395,"title":396,"slug":397,"type":377,"image":398,"date":399},3031,"Bolder and StegX: Partners in a digital real estate funds sector","bolder-and-stegx-partners-in-a-digital-real-estate-funds-sector","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/qKHVXPlaXHcrFLdhPrSl3HKpueMtxzYB2YhZGx9R.jpg","2022-11-08T04:36:00+08:00",{"id":401,"title":402,"slug":403,"type":377,"image":404,"date":405},3032,"Bolder Group x Accace: global payroll solutions with local focus","bolder-group-x-accace-global-payroll-solutions-with-local-focus","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/WIcbcZzeaEqwAWLwv7yWeMYrtCm6TwdrYMgMURL4.jpg","2022-12-15T07:27:00+08:00",{"previous":407,"next":107},{"id":408,"title":409,"slug":410},3787,"Cyprus Tax Residency for Individuals: Rules, Benefits and Residency Routes","cyprus-tax-residency-for-individuals-rules-benefits-and-residency-routes",{"data":412,"links":462,"meta":466},[413,419,434,448],{"id":374,"title":375,"slug":376,"type":377,"overview":378,"content":379,"featuredImage":107,"thumbnail":380,"imageAlt":381,"readTime":199,"status":382,"publishedAt":383,"is_featured":4,"metaDescription":107,"contactFullName":107,"contactPosition":107,"contactEmail":107,"contactLinkedin":107,"contactImagePath":107,"contactDetails":107,"author":414,"createdAt":386,"relatedItems":415},{"id":166,"name":385},[416,417,418],{"id":389,"title":390,"slug":391,"type":377,"image":392,"date":393},{"id":395,"title":396,"slug":397,"type":377,"image":398,"date":399},{"id":401,"title":402,"slug":403,"type":377,"image":404,"date":405},{"id":420,"title":421,"slug":422,"type":377,"overview":423,"content":424,"featuredImage":107,"thumbnail":425,"imageAlt":426,"readTime":193,"status":382,"publishedAt":427,"is_featured":4,"metaDescription":107,"contactFullName":107,"contactPosition":107,"contactEmail":107,"contactLinkedin":107,"contactImagePath":107,"contactDetails":107,"author":428,"createdAt":429,"relatedItems":430},3786,"Unlocking the ADGM Advantage: SPVs, Foundations & Strategic Wealth Protection","unlocking-the-adgm-advantage-spvs-foundations-strategic-wealth-protection","Discover how  Abu Dhabi Global Market (ADGM) SPVs or Foundations optimise corporate structuring and safeguard your family wealth.","\u003Ch1>\u003Cspan>Unlocking the ADGM Advantage: SPVs, Foundations & Strategic Wealth Protection\u003C/span>\u003Cspan style=\"color: rgb(0, 0, 0);\"> \u003C/span>\u003C/h1>\u003Cp>\u003Cspan>\u003Cstrong>\u003Cem>Quick Read: The ADGM Advantage\u003C/em>\u003C/strong> \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>A Trusted Legal Foundation:\u003C/em>\u003C/strong>\u003Cem> ADGM operates independently under English Common Law, providing transparency, predictability and robust protections for investors.\u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Innovative Structures:\u003C/em>\u003C/strong>\u003Cem> It offers highly flexible Special Purpose Vehicles (SPVs) and the world’s first bespoke legal framework for Distributed Ledger Technology (DLT) Foundations. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Strategic Asset Holding:\u003C/em>\u003C/strong>\u003Cem> An ADGM SPV can directly hold Dubai real estate or manage stakes in mainland  UAE operating companies. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: justify;\">\u003Cspan>The UAE’s rapid rise as a premier hub for global investors is driven by the Abu Dhabi Global Market (ADGM). Recognised as a top-tier international financial centre, ADGM has transformed the region’s financial landscape, reshaping how businesses and individuals approach wealth management, secure assets and structure modern businesses. Moreover, it provides an unparalleled regulatory environment for entrepreneurial families and institutional investors.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">What Makes ADGM a Global Hub for Wealth Management?\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>As the UAE’s wealth management market undergoes rapid innovation, ADGM offers sophisticated structuring tools built on a common law framework that outpace traditional civil law jurisdictions.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Shifting mainland UAE shareholdings into ADGM places core business relationships inside a more predictable legal umbrella, eliminates administrative red tape, accelerates corporate decision-making and significantly reduces cross-border legal exposure.  \u003C/span>\u003C/p>\u003Ch3 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW10489124 BCX8\">The Strategic Power of ADGM Special Purpose Vehicles (SPVs)\u003C/span>\u003C/span>\u003C/h3>\u003Cp style=\"text-align: justify;\">\u003Cspan>An ADGM Special Purpose Vehicle (SPV) functions as a highly adaptable, exempt holding structure that operates outside the direct supervision of the Financial Services Regulator, giving investors exceptional flexibility for asset consolidation.  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Structural Versatility:\u003C/strong> An ADGM SPV can transition from a lightweight, passive holding vehicle into a fully established holding company as corporate demands scale.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Broad Asset Compatibility:\u003C/strong> They are authorised to own real estate in Dubai as well as shares in mainland or free zone businesses.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Sophisticated Ownership:\u003C/strong> ADGM SPVs accommodate sophisticated ownership setups, supporting trusts, foundations and funds as ultimate beneficial owners. \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Ch3 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Pioneering the Future: DLT Foundations\u003C/span>\u003C/h3>\u003Cp style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">ADGM is actively redefining asset protection for the digital era by introducing the world’s first comprehensive legal framework for DLT Foundations. ADGM establishes a robust, fully regulated environment tailored for digital assets, blockchain enterprises and decentralised autonomous organisations (DAOs). \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW115089430 BCX8\">Frequently Asked Questions\u003C/span>\u003C/span>\u003C/h2>\u003Ch3 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW265030965 BCX8\">What is an ADGM SPV?\u003C/span>\u003C/span>\u003C/h3>\u003Cp style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">An ADGM Special Purpose Vehicle (SPV) is a flexible, streamlined holding structure established within the Abu Dhabi Global Market and operates under English Common Law. It enables ring-fencing, financial risk isolation, efficient property ownership and intergenerational wealth management while minimising burdensome regulatory oversight. \u003C/span>\u003C/p>\u003Ch3 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW160272774 BCX8\">Can an ADGM company hold real estate in Dubai?\u003C/span>\u003C/span>\u003C/h3>\u003Cp style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Yes. Both ADGM SPVs and Foundations are fully authorised to hold Dubai real estate, allowing investors to consolidate property portfolios across the UAE under one robust common law framework.\u003C/span>\u003C/p>\u003Ch3 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Why choose ADGM over other jurisdictions for a Foundation?\u003C/span>\u003C/h3>\u003Cp style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">ADGM delivers one of the world’s most flexible Foundation regimes designed to support both traditional asset protection and digital assets through DLT Foundations, with a globally respected legal framework backed by the ADGM Courts.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Next Steps: Navigate ADGM with Bolder Group\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>At Bolder Group, we tailor bespoke corporate and fund administration solutions for a global client base, with specialised, localised support. Our dedicated Middle East team combines regional expertise with international best practices to establish and service Family Offices, Foundations, SPVs and complex intergenerational wealth management structures in international financial centres like the ADGM.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Ready to future-proof your assets and optimise your corporate structures in the UAE? Speak with our \u003C/span>\u003Ca target=\"_blank\" rel=\"noreferrer noopener\" class=\"text-blue-600 underline Hyperlink SCXW93185121 BCX8\" href=\"https://boldergroup.com/contact-us/\">\u003Cspan>\u003Cu>Bolder representatives\u003C/u>\u003C/span>\u003C/a>\u003Cspan> today.\u003C/span>\u003C/p>","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/BH_Unlocking-the-ADGM-Advantage2.jpg","ADGM SPVs & Foundations: The Future of UAE Wealth Management","2026-09-24T11:37:00+08:00",{"id":166,"name":385},"2026-09-25T11:34:18+08:00",[431,432,433],{"id":389,"title":390,"slug":391,"type":377,"image":392,"date":393},{"id":395,"title":396,"slug":397,"type":377,"image":398,"date":399},{"id":401,"title":402,"slug":403,"type":377,"image":404,"date":405},{"id":435,"title":436,"slug":437,"type":377,"overview":438,"content":439,"featuredImage":107,"thumbnail":440,"imageAlt":436,"readTime":160,"status":382,"publishedAt":441,"is_featured":4,"metaDescription":107,"contactFullName":107,"contactPosition":107,"contactEmail":107,"contactLinkedin":107,"contactImagePath":107,"contactDetails":107,"author":442,"createdAt":443,"relatedItems":444},3779,"How China’s 2026 Offshore Trust Tax Rules Impact U.S.–China Family Wealth","how-chinas-2026-offshore-trust-tax-rules-impact-us-china-family-wealth","China’s 2026 rules impose a 20% Individual Income Tax on offshore trusts.  Discover key implications for U.S./Chinese families and compliance steps before the Oct 22 deadline.","\u003Ch1>\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW54570058 BCX8\">China’s Landmark 2026 Offshore Trust Rules: What U.S.–China Families and Wealth Planners Must Know\u003C/span>\u003C/span>\u003C/h1>\u003Cp>\u003Cspan>\u003Cstrong>\u003Cem>Quick Read\u003C/em>\u003C/strong> \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Policy Overview:\u003C/em>\u003C/strong>\u003Cem> On 24 July 2026, China’s Ministry of Finance and State Taxation Administration enacted landmark rules imposing a \u003C/em>\u003Cstrong>\u003Cem>20% Individual Income Tax (IIT)\u003C/em>\u003C/strong>\u003Cem> on offshore trusts linked to Chinese tax residents.  \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Expanded Tax Residency Scope:\u003C/em>\u003C/strong>\u003Cem> Individuals residing abroad, including U.S. citizens and lawful permanent residents, may be deemed Chinese tax residents if their principal economic interests remain within China. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Primary Tax Trigger Events:\u003C/em>\u003C/strong>\u003Cem> China’s 20% Individual Income Tax (IIT) applies across four distinct operational stages: (1) Transfer to an Offshore Trust, (2) Annual Trust Income Accrual, (3) Trust Termination or Residency Exit and (4) Beneficiary Distributions. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Substantial Double Taxation Risk:\u003C/em>\u003C/strong>\u003Cem> Dual U.S./Chinese tax residents may face a heightened risk of double taxation due to conflicting tax recognition rules. China taxes trust contributions upfront whereas the U.S. taxes realization events upon sale without clear foreign tax credit (FTC) offsets. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Compliance Deadline:\u003C/em>\u003C/strong>\u003Cem> While these regulations operate retroactively, enforcement protects tax years before 2021. Taxpayers must declare and pay tax on any unreported offshore trust income for \u003C/em>\u003Cstrong>\u003Cem>2021–2025 \u003C/em>\u003C/strong>\u003Cem>no later than\u003C/em>\u003Cstrong>\u003Cem> 22 October 2026\u003C/em>\u003C/strong>\u003Cem>,\u003C/em>\u003Cstrong>\u003Cem> \u003C/em>\u003C/strong>\u003Cem>to prevent late-payment fees and regulatory fines.\u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: justify;\">\u003Cspan>China’s Ministry of Finance and the State Taxation Administration recently introduced a landmark regulatory framework targeting offshore trust structures. Effective 24 July 2026, the policy enforces a 20% Individual Income Tax (IIT) on asset contributions, holdings and distributions associated with offshore trusts.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Taxpayers managing U.S.-based trusts with Chinese beneficiaries or holding assets tied to Chinese economic interests are subject to immediate tax liabilities and exposure to heightened double-taxation risks. This article outlines the regulatory mechanics, tax residency criteria, compliance hazards and urgent requirements before the 22 October 2026 reporting deadline.  \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">What Are China’s New Offshore Trust Rules?\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>Under the newly issued guidance, an “offshore trust” refers to any trust or fiduciary structure governed by a jurisdiction outside mainland China. This scope explicitly includes prominent vehicles established in domestic U.S. jurisdictions (e.g., Delaware, Nevada) and traditional offshore havens (e.g., the Cayman Islands, British Virgin Islands).  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>While offshore trusts were historically utilised for asset protection and tax deferral, offshore trusts are now subject to a 20% Individual Income Tax (IIT) for Chinese tax residents across four primary taxable triggers:  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Asset Transfers & Funding:\u003C/strong> Tax on built-in capital gains on property transferred into an offshore trust. \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Current Annual Income:\u003C/strong> Tax on all annual income, including dividends and capital gains, accrued within a trust funded by a Chinese tax resident.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Trust Termination & Exit:\u003C/strong> Tax on built-in gains upon trust termination or settlor exit from Chinese tax residency.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Beneficiary Distributions:\u003C/strong> Tax on income distributions received by Chinese resident beneficiaries and full asset distributions upon trust dissolution.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Retroactive Enforcement and Compliance Deadline\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>While these regulations operate retroactively, enforcement protects tax years prior to 2021. However, to prevent late-payment fees and regulatory fines, taxpayers must declare and pay tax on any previously unreported offshore trust income prior to the 22 October 2026 compliance deadline. \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Who Qualifies as a “Chinese Tax Resident”?\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>The scope of these regulations applies beyond mainland Chinese borders. Chinese tax residency is generally established through permanent domicile or a 183-day physical presence in a given tax year. However, the new guidance broadens the concept of domicile through an economic impact test: A foreign citizen or U.S. Green Card holder permanently resident in the U.S. may be deemed a Chinese tax resident if the individual’s primary economic interests are derived from within China.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>As a result, foreign individuals holding significant business operations, real estate interests or corporate equity within China can be classified as Chinese tax residents irrespective of physical presence, unless dual residency is resolved under the tie-breaker provisions of the U.S.–China Income Tax Treaty to prevent double taxation. \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW98239395 BCX8\">Lifetime Tax Treatment of Resident Settlors\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>For Chinese tax residents (resident settlors) who directly or indirectly fund an offshore trust, the following tax rules apply:  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Gain Recognition Upon Funding:\u003C/strong> The transfer of appreciated assets into any trust structure, whether revocable or irrevocable, incurs an immediate 20% Individual Income Tax (IIT) on unrealised gains.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Current Annual Taxation:\u003C/strong> The resident settlor is subject to current annual taxation on all income earned by the trust. Capital losses cannot be carried forward to subsequent tax years or used to offset dividend, interest or other income.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Look-Through Provisions for Foreign Entities:\u003C/strong> Any earnings derived from underlying foreign holding companies, LLCs or corporations controlled by the trust are attributed directly to the settlor.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Taxation Upon Termination or Residency Relinquishment:\u003C/strong> Upon the termination of the trust during the settlor’s lifetime, or upon the settlor’s relinquishment of Chinese tax residency, a final IIT assessment is levied on all remaining built-in gains, which resets the asset basis to fair market value.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>The U.S.–China Double Taxation Exposure\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>This tax framework introduces a severe risk of double taxation for dual U.S./Chinese taxpayers due to conflicting jurisdictional tax rules. For example, a U.S. citizen who is deemed a Chinese tax resident transfers appreciated, zero‑basis stock into a Delaware irrevocable trust; China taxes the transfer immediately and levies IIT of 20% on the unrealised gain. The U.S. generally does not tax the transfer at funding, but taxes the full gain when the trust later sells the stock, creating a significant double taxation exposure.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Given the lack of a direct Foreign Tax Credit (FTC) mechanism to reconcile the timing difference, the taxpayer is exposed to unmitigated double taxation on the identical appreciation. \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW100116826 BCX8\">Taxation Upon the Death of a Resident Settlor\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>Upon the death of a resident settlor, tax liabilities are dictated by the tax residency status of the individual who inherits the settlor’s rights and beneficial interests. If a non‑resident inherits, built‑in capital gains are subject to a one‑time individual income tax (IIT) at 20%. If a Chinese resident inherits, the successor steps into the deceased settlor’s role and must continue annual IIT reporting and tax liabilities.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>A significant planning challenge arises in multi-generational family trusts that frequently rely on discretionary distribution provisions among beneficiaries living in both the U.S. and China. Determining the legal successor who “inherits” the trust’s beneficial interests at death remains ambiguous and awaits administrative guidance from tax authorities.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW145248444 BCX8\">Impact on Non-Resident Settlors and Chinese Beneficiaries\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>Even where the settlor is a non-resident of China, the Chinese Individual Income Tax rules can still apply in two principal circumstances:  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Chinese-Sourced Asset Transfers:\u003C/strong> Transfers of assets into an offshore trust by a non-resident settlor can trigger IIT if the underlying assets obtain economic value from China. For example, transferring a Delaware LLC that holds Chinese real estate or other China-based economic interests.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Taxation of Beneficiaries:\u003C/strong> Beneficiaries who are Chinese tax residents who receive trust income distributions from a non-resident’s trust are subject to a 20% IIT. Additionally, upon the trust’s dissolution, distributions of the principal corpus may also face Chinese tax liabilities.\u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Key Takeaways and Compliance Directives\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">China’s 2026 offshore trust regime signals a strict new era of comprehensive global asset monitoring. To manage compliance and minimise exposure to double taxation, affected families should take immediate steps, which include conducting a residency audit, reviewing historical transactions, assessing tax treaty relief and restructuring distribution mechanics.\u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Protect Your Cross-Border Wealth with Bolder\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>Managing the complex interplay between China’s new Individual Income Tax (IIT) regulations for offshore trusts and U.S. tax code provisions necessitates a sophisticated, cross-border strategic framework. Given the 22 October 2026 deadline to disclose historical income without late-payment penalties fast approaching, immediate and proactive compliance measures are critical.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Ready to secure your cross-border trust and tax compliance? Prepare before the statutory deadline by contacting our \u003C/span>\u003Ca target=\"_blank\" rel=\"noreferrer noopener\" class=\"text-blue-600 underline Hyperlink SCXW241085451 BCX8\" href=\"https://boldergroup.com/contact-us\">\u003Cspan>\u003Cu>Bolder experts\u003C/u>\u003C/span>\u003C/a>\u003Cspan> today.\u003C/span>\u003C/p>","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/GFX-Header-China-Offshore-Trust-Tax-Rules-2026-U.S.-China-Family-Impact.png","2026-08-13T16:31:00+08:00",{"id":166,"name":385},"2026-08-14T16:25:07+08:00",[445,446,447],{"id":389,"title":390,"slug":391,"type":377,"image":392,"date":393},{"id":395,"title":396,"slug":397,"type":377,"image":398,"date":399},{"id":401,"title":402,"slug":403,"type":377,"image":404,"date":405},{"id":449,"title":450,"slug":451,"type":377,"overview":452,"content":453,"featuredImage":107,"thumbnail":454,"imageAlt":450,"readTime":205,"status":382,"publishedAt":455,"is_featured":4,"metaDescription":107,"contactFullName":107,"contactPosition":107,"contactEmail":107,"contactLinkedin":107,"contactImagePath":107,"contactDetails":107,"author":456,"createdAt":457,"relatedItems":458},3778,"Luxembourg AIFM Law Updates: AIFMD II & Bill of Law 8814","luxembourg-aifm-law-updates-aifmd-ii-bill-of-law-8814","Explore updates to Luxembourg’s AIFM Law, covering the AIFMD II transposition and the new SCS/SCSp multi-compartment flexibility under Bill of Law 8814.","\u003Ch1>\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW189001938 BCX8\">Luxembourg AIFM Law Updates: AIFMD II Transposition & Bill of Law 8814\u003C/span>\u003C/span>\u003C/h1>\u003Cp>\u003Cspan>\u003Cstrong>\u003Cem>Quick Read: \u003C/em>\u003C/strong> \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Key Development (AIFMD II): \u003C/em>\u003C/strong>\u003Cem>Luxembourg’s Bill of Law 8628 transposed the EU’s AIFMD II directive into national legislation, introducing substantial amendments to the Law of 12 July 2013 on alternative investment fund managers (AIFMs). \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Loan Origination Regime:\u003C/em>\u003C/strong>\u003Cem> Under Bill of Law 8628, loan\u003C/em>‑\u003Cem>originating alternative investment funds are now subject to a stringent legal framework that includes leverage caps of \u003C/em>\u003Cstrong>\u003Cem>175% (open\u003C/em>\u003C/strong>‑\u003Cstrong>\u003Cem>ended)\u003C/em>\u003C/strong>\u003Cem> and \u003C/em>\u003Cstrong>\u003Cem>300% (closed\u003C/em>\u003C/strong>‑\u003Cstrong>\u003Cem>ended)\u003C/em>\u003C/strong>\u003Cem>, a \u003C/em>\u003Cstrong>\u003Cem>5% risk retention\u003C/em>\u003C/strong>\u003Cem> requirement on secondary sales and a strict prohibition on consumer lending in Luxembourg.\u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Mandatory Liquidity Management Tools (LMTs):\u003C/em>\u003C/strong>\u003Cem> Managers of open-ended AIFs must now designate at least two recognised Liquidity Management Tools (LMTs), such as redemption gates, extended notice periods or anti\u003C/em>‑\u003Cem>dilution levies, to enhance fund liquidity risk management. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>Strengthened Governance & Oversight:\u003C/em>\u003C/strong>\u003Cem> The amendments require that an AIFM’s business be directed by \u003C/em>\u003Cstrong>\u003Cem>at least two full\u003C/em>\u003C/strong>‑\u003Cstrong>\u003Cem>time EU\u003C/em>\u003C/strong>‑\u003Cstrong>\u003Cem>domiciled individuals\u003C/em>\u003C/strong>\u003Cem>, tightening delegation reporting standards and retaining the local depositary requirement for Luxembourg AIFs. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>\u003Cem>A Parallel Domestic Upgrade: \u003C/em>\u003C/strong>\u003Cem>Distinct from the European directive transposition, Luxembourg’s newly proposed Bill of Law 8814 introduces umbrella fund flexibility for unregulated common limited partnerships (SCS) and special limited partnerships (SCSp) that qualify as AIFs, subject to the regulatory condition that they are managed by an EU-established AIFM. \u003C/em> \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW208750858 BCX8\">Why Did Luxembourg Amend the 2013 AIFM Law?\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>With the advancing regulatory environment for Alternative Investment Funds (AIFs), Luxembourg has modernised its cornerstone \u003C/span>\u003Ca target=\"_blank\" rel=\"noreferrer noopener\" class=\"text-blue-600 underline Hyperlink SCXW125830745 BCX8\" href=\"https://www.chd.lu/fr/dossier/8814\">\u003Cspan>\u003Cu>AIFM Law of 12 July 2013\u003C/u>\u003C/span>\u003C/a>\u003Cspan>. This pivotal update was achieved by enacting Bill of Law 8628 to transpose Directive (EU) 2024/927 (AIFMD II).  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Although Luxembourg sticks strictly to the core EU directive text without adding extra local restrictions, Directive (EU) 2024/927 AIFMD II introduces major operational shifts for fund managers. This includes tightened lending criteria and enhanced liquidity protections. Understanding these modifications is critical to ensuring compliance and positioning your fund structures ahead of the 2027 reporting deadlines.  \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW201550044 BCX8\">What Are the Key AIFMD II Amendments (Bill of Law 8628)?\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>1. A Comprehensive Framework for Loan-Originating AIFs\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>The reforms establish harmonised rules surrounding loan origination designed to mitigate systemic risk and protect investors. Key structural updates include:  \u003C/span>\u003C/p>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Leverage Caps:\u003C/strong> Regulatory leverage is now strictly capped at 175% for open-ended AIFs and 300% for closed-ended AIFs.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Risk Retention:\u003C/strong> AIFs must retain at least 5% of the notional value of originated loans sold to third parties.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Concentration Limits:\u003C/strong> A strict 20% exposure threshold applies to single institutional borrowers, such as financial undertakings, UCITS or other AIFs.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cul>\u003Cli>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>Consumer Lending Prohibition:\u003C/strong> Luxembourg has strictly prohibited AIFs from originating loans to retail consumers within its territory.  \u003C/span>\u003C/p>\u003C/li>\u003C/ul>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>2. Mandatory Liquidity Management Tools (LMTs)\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>To strengthen liquidity preparedness during periods of market volatility, the updated law requires managers of open‑ended AIFs to select at least two liquidity management tools (LMTs) from the statutory annex into their governance framework. The newly established statutory list includes redemption gates, extended notice periods, redemption fees, swing pricing and dual pricing and anti-dilution levies.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Meanwhile, Money Market Funds (MMFs) are subject to select only one tool; however, a combination of just swing pricing and dual pricing is not permitted.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>3. Heightened Substance Requirements and Expanded Ancillary Services\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>The revised rules require genuine operational substance by mandating that an AIFM’s business be directed by at least two natural persons who are domiciled in the EU and engaged on a full-time basis by the management entity.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Alongside these substance requirements, the regulatory framework broadens the scope of permitted ancillary services. AIFMs may now offer ancillary services such as human resources, IT and anti-money laundering (AML) to third parties, including intermediate and co-investment vehicles. Such arrangements are permissible provided that robust conflict‑of‑interest controls are in place and actively enforced. \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>\u003Cstrong>4. Depositary Continuity and Delegation Oversight\u003C/strong> \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Despite market anticipation regarding the potential introduction of an EU-wide cross-border depositary passport under AIFMD II, Luxembourg has maintained its statutory local presence mandate. As a result, Luxembourg-domiciled AIFs must continue to appoint a depositary physically established within the jurisdiction.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Moreover, the regulatory regime governing delegation has been significantly reinforced by requiring AIFMs to provide more detailed reporting on delegated functions. This is to provide regulatory authorities with transparent oversight of core function execution. \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">\u003Cspan class=\"NormalTextRun SCXW134315822 BCX8\">Beyond AIFMD II: A Parallel Domestic Upgrade (Bill of Law 8814)\u003C/span>\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>While AIFMD II drives harmonisation across the EU, Luxembourg is proactively refining its domestic fund toolkit to maintain its status as a leading fund domicile.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Designed to fill a key regulatory gap, recently introduced Bill of Law 8814 proposes multi‑compartment flexibility for qualifying unregulated Luxembourg limited partnerships SCS and SCSp that qualify as alternative investment funds, provided they are managed by an AIFM established in the EU. This domestic reform significantly enhances the competitiveness of Luxembourg’s unregulated SCS and SCSp vehicles on the global stage and against segregated portfolio structures found in other jurisdictions.  \u003C/span>\u003C/p>\u003Ch2 style=\"text-align: justify;\">\u003Cspan style=\"color: rgb(0, 0, 0);\">Ensure Compliance and Optimise Your Luxembourg Fund Structures with Bolder\u003C/span>\u003C/h2>\u003Cp style=\"text-align: justify;\">\u003Cspan>In response to the shifting regulatory landscape, Bolder provides the tailored governance, compliance and corporate services needed to seamlessly navigate the latest amendments to Luxembourg’s AIFM Law.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: justify;\">\u003Cspan>Whether you need to align your operations with AIFMD II requirements or want to leverage the new multi-compartment flexibilities for your SCS and SCSp vehicles, our team can help ensure your AIFs remain resilient, compliant and structurally competitive. To get started, please get in touch with \u003C/span>\u003Ca target=\"_blank\" rel=\"noreferrer noopener\" class=\"text-blue-600 underline Hyperlink SCXW235237089 BCX8\" href=\"https://boldergroup.com/contact-us/luxembourg\">\u003Cspan>\u003Cu>our Bolder experts\u003C/u>\u003C/span>\u003C/a>\u003Cspan> today.  \u003C/span>\u003C/p>\u003Cp style=\"text-align: left;\">\u003C/p>","https://boldergroup.sgp1.cdn.digitaloceanspaces.com/articles/uploads/SP-Header-AIFMD-II-Bill-of-Law-8814.jpg","2026-08-10T10:13:00+08:00",{"id":166,"name":385},"2026-08-06T17:07:59+08:00",[459,460,461],{"id":389,"title":390,"slug":391,"type":377,"image":392,"date":393},{"id":395,"title":396,"slug":397,"type":377,"image":398,"date":399},{"id":401,"title":402,"slug":403,"type":377,"image":404,"date":405},{"first":463,"last":464,"prev":107,"next":465},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=1","https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=34","https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=2",{"current_page":6,"from":6,"last_page":346,"links":467,"path":508,"per_page":199,"to":199,"total":509},[468,471,473,475,478,481,484,487,490,493,496,499,501,504,506],{"url":107,"label":469,"page":107,"active":470},"« Previous",false,{"url":463,"label":472,"page":6,"active":4},"1",{"url":465,"label":474,"page":184,"active":470},"2",{"url":476,"label":477,"page":193,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=3","3",{"url":479,"label":480,"page":199,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=4","4",{"url":482,"label":483,"page":205,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=5","5",{"url":485,"label":486,"page":154,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=6","6",{"url":488,"label":489,"page":160,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=7","7",{"url":491,"label":492,"page":166,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=8","8",{"url":494,"label":495,"page":172,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=9","9",{"url":497,"label":498,"page":178,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=10","10",{"url":107,"label":500,"active":470},"...",{"url":502,"label":503,"page":340,"active":470},"https://admin.boldergroup.com/api/articles?type=update&per_page=4&page=33","33",{"url":464,"label":505,"page":346,"active":470},"34",{"url":465,"label":507,"page":184,"active":470},"Next »","https://admin.boldergroup.com/api/articles",135,1791180136471]