A SICAV in Spain refers to a company with variable capital, which is regulated by the Collective Investment Schemes (CIS) Law. A Spanish SICAV is registered as an open-ended securities company, which means that the respective investor is not bound to any limitations in terms of the shares it can issue within the respective company. There is a specific regulation which applies to this type of investment structure and our lawyers in Spain can provide assistance on this matter, including on the taxation system applicable here, which is similar to the one set up under the European Union’s directive.
Taxation regime available for Spanish SICAVs
One of the main aspects when opening a company in Spain refers to the taxation system applicable to that respective legal entity.
In Spain, SICAVs are taxed for their income at a corporate tax rate of 1%. However, the tax can be lowered even more in certain conditions, which can be further explained by our attorneys in Spain.
A SICAV can be registered in this country only if the minimum number of shareholders is established at 100, situation in which the CIS regulations are available.
The shareholders of the company are to be taxed for the income they receive under the form of dividends. Another way in which the investors are taxed in a SICAV company is when they sell the shares they own in the business. In such a case, the tax will be applicable for the capital gains.
The main investors in a Spanish SICAV
Those who want to set up an investment fund in Spain can choose from many legal options, but it is important to know that the Spanish SICAVs are mostly incorporated by persons with a high net worth income or by wealthy families. The SICAV structure is preferred in this case because it can provide a mean through which the investors can re-invest their savings with the purpose of creating more wealth.
Persons who need to receive more details on the registration procedure of a Spanish SICAV may contact our law firm in Spain for legal assistance or representation.