(Alternative) investments and participations
The taxation and structuring of capital investments of private and institutional investors are our main area of expertise. A professional investment strategy cannot be realised without the tax management of complex forms of investment (e.g. funds, certificates, foreign investments) with cross-border implications. This applies in particular to investments in so-called alternative investments, such as renewable energies, infrastructure, closed-end property funds, private equity, etc. Our experts have the necessary expertise and many years of experience in legal areas such as the Investment Tax Act, the Foreign Tax Act, international tax law and the relevant company law.
We advise private and institutional investors on making such investments and ensure the proper fulfilment of tax obligations (tax compliance). In addition, we support our clients in the run-up to the investment in order to avoid unnecessary additional tax burdens (e.g. definitive withholding taxes) that could reduce returns. TAXGATE's particular strength lies not only in providing structuring advice but also in efficiently carrying out complex tax declaration tasks with an international dimension.
Our team supports German and foreign banks, funds and issuers of certificates in the structuring of investment products, taking particular account of the tax requirement profiles of the target clients as well as German and foreign entrepreneurs. We see ourselves as proactive partners who work with our clients to design tax-efficient forms of investment, taking into account the latest legal developments, and implement them in a legally compliant manner.
In addition, our consultants have many years of experience in auditing add-back tax situations in accordance with the Foreign Tax Act (AStG) and support clients in the categorisation of foreign companies in accordance with these legal standards and assist them with 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
- Documentation of fund structures and financial instruments
- Shareholder agreements, co-investor documentation, management participation programs
- Contracts for the implementation of restructuring (mergers, changes of legal form, spin-offs, spin-offs, holding structures)
- Intercompany agreements, group allocation agreements, joint venture agreements
- 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 acquired our in-depth and long-standing experience in numerous national and international transactions. In the recent past, for example, we have advised our clients on the following, mostly 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)
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