Luis Cuesta on the relevant criteria for family office investment in private equity

Luis Cuesta, an associate in Gómez-Acebo & Pombo’s Tax team, gives his opinion in this column in Expansión on the relevant criteria for investment by family offices in private equity.

The DGT has recently issued a favourable ruling on the application of the exemption of the “family business” from Wealth Tax (IP), which can therefore be extended to the planned temporary Major Fortunes Solidarity Tax (IGF), in the investment in a European Private Equity Fund. This broadens the range of vehicles in which a Spanish investor or family office affected by Wealth Tax and by the planned Major Fortunes Tax will be willing to invest.

“Despite the positive outcome of the DGT’s pronouncement, the application of the family business regime in general and private equity investment in particular, must be analysed on a case-by-case basis, paying attention to the requirements that may be applicable,” Luis points out.

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