Munich, 22 May 2023 – Germany is known to have a high tax rate. This applies not only to income tax and corporate taxation, but also to financial investments. The federal government is now taking a step forward in this area: the new Future Financing Act is intended to reduce bureaucracy and to expand options for energy infrastructure investments. It also includes tax relief initiatives. “This removes a significant competitive advantage, particularly in comparison to Luxembourg”, argues Daniel Knoblach, General Manager of Super Global GmbH. “Germany will therefore become far more appealing to investors.”
With the Future Financing Act, the VAT exemption is now extended to the administration of all AIFs, irrespective of asset classes, as well as the regulation of AIF management and investor qualification. This brings the tax status in line with that of the other EU member states. “The step means a strengthening of Germany as a financial and investment location”, said Oliver Decker, a member of Super Global’s supervisory board since March. “In the future, there will be no compelling reason to establish funds in Luxembourg rather than Germany.” Tax-motivated migration to neighbouring countries should thus be halted.
The new law’s indirect consequences on the Investment Ordinance, which applies to pension funds and pension schemes, among other things, are also considered positive. There have been adjustments, such as the distribution of investments to the real property quota, which has resulted in expanded investment alternatives.
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The new law’s indirect consequences on the Investment Ordinance, which applies to pension funds and pension schemes, among other things, are also considered positive. There have been adjustments, such as the distribution of investments to the real property quota, which has resulted in expanded investment alternatives.