Tax treatment of foreign Private Equity for its Spanish tax resident participants. What is the purpose of Article 95 of the Spanish Income Tax Law?

Abstract

The tax problems related to private equity investments made abroad by both individuals and legal entities resident in Spain are  analyzed; a subject on which there is hardly any doctrine (neither administrative nor academic) or case law. In particular, the  possible application of article 95 of the Spanish Income Tax Law, in theory specifically suited for Collective Investment Undertakings  incorporated in tax havens, is examined in depth, but it is concluded that its use turns illogic for such private equity entities. All of  which is accompanied by an example for better understanding.