Depending on the country or sector of the investment, extensive work must be done to assure the correct planning of current and future tax impacts of the investment. This is particularly the case when a future exit from the investment is foreseen (incurring capital gains taxes), or when a piece-by-piece divestment of assets is important.
It is also important to take into account investor preference. For instance, many investors avoid a direct investment in a high-risk or high-bureaucracy country such as Greece or Ukraine, given the barriers to investment they may encounter, and the capital gains requirements in event of an exit. An investment holding or SPV based in Cyprus or The Netherlands might offer a measure of security or transaction convenience that such an arrangement may bring.
Our association with Numenor Corporate Management, an investment management and corporate registration firm based in Cyprus, provides our clients with in-depth operational support in this area.