Luxembourg Specialised Investment Funds (“SIF”) and the application of controlled foreign corporation antiabuse Tax Regime

Previously, it should be recalled that the CFC regime seeks to avoid certain structures which are considered to be abusive since they serve as artificial company relocations, for example, the CFC regime seeks to avoid the establishment of an investment vehicle corporation between the source of income and the ultimate holder of the capital with the intention to ensure that such income is taxed at the level of the investment vehicle corporation instead of being taxed by the country of residence of the ultimate holder of the capital. Indeed, the CFC regime presumes that income which is not derived from the development of business activities (income from passive investment) obtained by corporations resident in low-tax or no-tax jurisdictions, will be attributed to the Spanish residents shareholders as if they would have directly obtained that income without the mediation of the investment vehicle corporation.