Collective Investment Schemes (SICAV): Who Qualifies and What You Get
Learn how SICAV investment structures work in Spain, including the tax benefits for large groups of investors and the specific requirements to qualify.
A Collective Investment Scheme (SICAV) is a type of investment vehicle used to pool money from many different people to invest in various assets.
Who it's for
This structure is designed for investors who can pool significant capital together. To qualify, the scheme must have a minimum of 100 shareholders.
What you get
The primary benefit of this scheme is a reduced tax rate. Profits earned by the scheme are taxed at a rate of 1% for corporate tax purposes.
What it costs you
Setting up this type of investment requires significant upfront costs. You will also face strict requirements to ensure you are following all regulatory rules.
The catch to know
To help meet the requirement of having 100 shareholders, new regulations state that each shareholder must make a minimum investment of €2,500.
How to apply
- Consult with financial advisors to ensure your capital meets the scale required.
- Organize a group of at least 100 qualifying shareholders.
- Ensure each shareholder meets the minimum investment threshold.
- Follow the regulatory compliance steps required by the national financial authority.