Slovak “investment company” vs foreign structures? These are topics that have been addressed much more frequently recently than would be appropriate from the perspective of Slovakia’s future

Slovak “investment company” vs foreign structures? These are topics that have been addressed much more often recently than would be appropriate from the perspective of Slovakia’s future:

➡️ Moving (part of) the business for legal, practical and tax reasons;

➡️ Formation of foreign holdings;

➡️ Creating foreign investment structures;

The move abroad also for tax reasons can be legally legitimate if, for example:

➡️ Another country has a more flexible legal system;

➡️ Slovakia does not know exactly how to tax this or that (unclear legislation);

➡️ Judges in another country can more predictably read various shareholder/shareholder agreements;

➡️ Social shrinking in Slovakia;

It’s probably already a trend. Therefore, as a person who loves this country, it is always a pleasure when a client invests in Slovakia.

After about 2 years, Tomas Spuchliak and Roman Baranec and I managed to complete the (dare I say big) licensing process of establishing a management company for the management of alternative investment funds (real estate fund, securities fund, crypto fund, hedge fund, “you name it”).

This is a licence for the creation and processing of AIF funds, which follows the harmonised regulation of the operation of AIF fund managers across the EU. Something that in practice costs hundreds of thousands of euros just to set up and is subject to relatively extensive regulation. To enter such an environment requires, above all, courage and, of course, capital. ✅ And the fact that this is only the 4th such company that does not have a bank in the group or is not established by the state is clear evidence of this.

Although it is a “Slovak” license, you can also use it to set up tax and regulatory/practical more attractive foreign funds (see the unfair taxation of Slovak mutual funds I wrote about here: https://lnkd.in/ejJBk7XB).

So a hearty congratulations and thanks for trusting Tomas. And thanks also to the National Bank of Slovakia for the professional conduct of the proceedings, which were admittedly intertwined with our different legal views (for example, on the interpretation of the so-called initial capital). But this is natural and, in those terms, it is healthy.

Certainly better than arguing whether the Earth is round.

Highgate Law & Tax – financial and tax law