Those who are interested in setting up an investment fund in Spain
should comply with a specific taxation system
, which is different than the tax regime
applicable to commercial companies incorporated in Spain
. The tax system
can also differ in accordance with the residency of the investors and our team of lawyers in Spain
can offer guidance on the relevant tax regime
applicable to a specific type of investment vehicle
operating on the Spanish market
Taxation of alternative investment funds in Spain
One of the ways in which a local or foreign investor can start an investment in Spain
is through an alternative investment fund (AIF)
, which refers to a broad category of investment vehicles
, such as hedge funds
, private equity funds
or real estate funds
. As a general rule, AIFs
refer to the funds
which are not included in the category of undertakings for collective investment in transferable securities (UCITS)
Further on, the tax treatment depends on the one of the most important characteristics of an investment vehicle: whether it is incorporated as an open-ended or closed-ended fund.
Open-ended funds in Spain
are regulated by the Spanish Corporate Income Tax Law
, which prescribes a 1% rate on the fund’s corporate income
. Open-ended funds
are the ones in which the investors are not imposed with any restrictions referring to the issuance of shares.
are also regulated by the above mentioned legislation, but they are imposed with a 25% corporate income tax (CIT) for the income incurred at a worldwide level and our Spanish lawyers
can provide more details on how the tax is applied in this case.
Spanish investment funds imposed with a 1% CIT
There are several investment vehicles
which are imposed with a smaller corporate income tax (CIT)
, applicable at the rate of 1%. In this sense, we can mention the SICAV form
, but only in the situation in which the total number of shareholders is of minimum 100.
Real estate investment vehicles registered as funds or as a corporate structure can also be imposed with this rate, but it is also necessary to have minimum 100 shareholders.