Why you should launch an Investment Fund in the Netherlands (Dutch FGR)

In Europe’s rapidly evolving investment landscape, the Dutch FGR (Fonds voor Gemene Rekening) structure is gaining popularity among professional investors, family offices, and independent managers. It offers a unique combination of transparency, flexibility, and regulatory simplicity — qualities that are increasingly valued in today’s complex global environment.

What is a Dutch FGR?

An FGR is a contractual fund formed through an agreement between a fund manager and one or more investors. It is not a legal entity and does not require registration with the Dutch Chamber of Commerce, making it remarkably easy to set up.

Thanks to this format, investors can pool capital under one management structure while retaining a high degree of control, adaptability, and confidentiality.

Key Advantages of FGR

Structural Flexibility and Management Options

One of the key strengths of the FGR is its flexibility. It can be structured as an umbrella fund, meaning several sub-funds with distinct strategies and asset types — from real estate to cryptocurrencies — can operate under one framework.

An FGR can use either internal or external depositaries and be managed in-house or by an external fund manager, depending on investor needs. This makes it highly adaptable to virtually any investment model.

Minimal Requirements and Reasonable Costs

Unlike many EU jurisdictions, an FGR does not require a minimum capital threshold.

Setup costs are moderate and vary based on the fund’s complexity. In practice, they include:

• One-time regulatory filing fee: ~€4,400
• Legal support: approx. €20,000
• No annual supervisory or licensing fees

Even with external service providers involved, the total cost of launching an FGR in the Netherlands is often lower than in most other European countries.

Simple Regulatory Framework

From a regulatory standpoint, the FGR offers two models — for professional and non-professional (retail) investors.

If fund units are offered only to professional investors, and total assets under management:

• do not exceed €100 million, or
• do not exceed €500 million (if no leverage is used and the fund is closed to investors for the first five years),

then the fund manager is exempt from full AIFMD licensing and only needs to register under a simplified registration regime.

If fund units are offered to retail investors, stricter criteria apply. To qualify for registration, the fund must:

• offer units to fewer than 150 investors, and/or
• set a minimum investment amount of €100,000 per unit (or equivalent total participation).

Under these conditions, the fund can also operate legally under the registration regime — fully compliant with Dutch and EU standards, but without the administrative burden of full licensing.

Streamlined Administration

An FGR does not require a central administrative body. Managers can build a lean structure by outsourcing services such as depository, accounting, audit, and management. This keeps operational costs low and governance agile.

No Investment Restrictions

One of the most compelling benefits of FGR is the absence of mandated investment or diversification rules. The fund manager has complete freedom to define the strategy — whether it’s venture capital, real estate, bonds, private equity, or alternative assets.

This level of autonomy makes FGR ideal for executing innovative investment ideas and high-return strategies.

Who Should Consider a Dutch FGR?

Dutch FGR is ideal for:

• Professional investors seeking fast and efficient fund setup within the EU
• Family offices focused on confidentiality and flexibility
• Independent asset managers in search of cost-effective legal structures
• International funds looking to expand into the European market

Why the Netherlands — and Why Now?

With rising compliance costs and regulatory hurdles in other EU countries, the Netherlands offers a balanced approach: a manageable level of oversight with minimal bureaucracy. No minimum capital, simplified registration, and structural versatility make Dutch FGR one of the most attractive fund vehicles in Europe today.

That’s why more investors and asset managers are choosing the Netherlands — a jurisdiction where the balance between freedom and legal certainty truly works.

Need support with fund setup?

International Fintech Business (IFB) can guide you through the entire process — from structuring and documentation to regulatory registration and ongoing compliance. Get in touch to learn how we can help you launch your Dutch FGR with confidence.