What is a SICAV?

What is a SICAV?

A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium, Malta, France, and the Czech Republic.

What happened to SICAVs in the Basque Country and Navarre?

In the Basque Country and Navarre, the autonomous regional tax authorities have raised the corporate income tax for SICAVs to that of the rest of corporations (up to 28%). As a result, the Basque and Navarrese SICAVs have changed their sites to the rest of Spain or the European Union.

What is a SICAV under the UCITS Directive?

SICAVs are increasingly being cross-border marketed in the EU under the UCITS directive. According to the Swiss Federal Act on Collective Investment Schemes (Collective Investment Schemes Act – CISA), an open-ended collective investment scheme may be in the form of a contractual fund or an investment company with variable capital (SICAV).

What are the tax advantages of SICAVs?

SICAVs have great tax advantages, paying corporate income tax ( corporation tax) at a rate of just 1%. Nonetheless, they have to fulfill several requirements: Number of stockholders no fewer than 100. Restrictions on investments. Capital may vary between the minimum and maximum established by the articles of association.