Investments and participations
The taxation and structuring of capital investments for private and institutional investors is our core expertise. A sound investment strategy requires proper tax management of complex investment forms (e.g., funds, certificates, foreign investments), especially when cross-border implications are involved. This is particularly true for alternative investments such as renewable energy, infrastructure, closed-end property funds, and private equity. Our experts bring years of experience in areas like the Investment Tax Act, Foreign Tax Act, international tax law, and relevant corporate law.
We advise both private and institutional investors on structuring these investments, ensuring full tax compliance. Our goal is to help clients avoid unnecessary tax burdens (e.g., definitive withholding taxes) that could reduce returns. TAXGATE excels not only in structuring advice but also in executing complex tax declarations with an international scope.
Our team works with German and foreign banks, funds, and certificate issuers to structure investment products tailored to the tax profiles of target clients. We act as proactive partners, helping our clients design tax-efficient investment structures in line with the latest legal developments.
Additionally, our consultants have extensive experience in assessing add-back taxation scenarios under the Foreign Tax Act (AStG). We assist clients in classifying foreign entities according to this legislation and provide support during upcoming tax audits.
Selected services:
- Conducting tax due diligence for complex investment structures and strategies
- Optimizing investments through domestic and international investment vehicles, including securitization solutions
- Structuring national and international funds, particularly in real estate and alternative investments
- Structuring profit participation rights, bonds, and other hybrid investment alternatives
- Advising on the implementation of management participation programs and carried interest structures
- Guiding domestic funds to avoid tax disadvantages under new investment tax regulations
- Assisting companies in reviewing add-back criteria per Section 7 AStG and determining relevant amounts
- Advising individuals on relocating abroad, considering exit taxation in accordance with Section 6 AStG
- Providing support during AStG tax audits
- Delivering expert opinions on tax-oriented capital investments and financing structures
- Securing binding rulings from tax authorities
- Obtaining negative confirmations from the Federal Financial Supervisory Authority (BaFin) to avoid unauthorized investment transactions in alternative investments
Track Record
We have extensive experience in handling national and international transactions. Recently, we have provided counsel on the following cross-border projects:
Capital contributions & participations:
- Advised a German credit institution on the restructuring of investments in alternative assets
- Structured a co-investment for a private bank, enabling German private investors to acquire profit participation rights in a €150 million property portfolio
- Assisted a Swiss bank in issuing certificates to German private investors
- Advised an investor on the acquisition of a minority stake in a German financial services corporation
- Guided a German private investor through the liquidation of a Luxembourg Société de Gestion de Patrimoine Familial (SPF)
- Assisted German and Luxembourg fund companies with the implementation of the 2018 Investment Tax Reform
- Reviewed investment structures for numerous German institutional investors in light of the 2018 Investment Tax Reform
- Supported a wind farm operator in raising mezzanine capital
- Advised Deutsche Sparkasse on various alternative investment opportunities
- Provided structuring advice to a German life insurance group on establishing a vehicle for alternative investments
- Assisted a German industrial group in aligning their existing CTA structure with InvStG 2018 for pension provisions
- Conducted due diligence for Deutsche Sachversicherungsgruppe on investment opportunities in alternative assets
- Advised a high-net-worth private investor in selecting an asset manager for a complex derivatives strategy
- Supported a German insurance company in making a venture capital investment
- Audited a Swiss foreign company and its intermediate subsidiaries in accordance with the principles of add-back taxation (AStG)
Your challenge is our priority
In a non-binding consultation, we’ll work together to explore the best options for you and how we can assist.
