20 April 2020

Cayman funds moving to Luxembourg


Cayman on Blacklist - limitations on the deduction of payments made to blacklisted countries


Following the recent change to the European Union blacklist which saw the addition of  Cayman Islands to the list of countries to which payments of interest and royalties paid or due to associated enterprises will be refused.


This decision further strengthens the need for fund manager and companies to redomicile Cayman structures to other onshore jurisdictions like Luxembourg.


This can be made through a simple process which can be enacted within a matter of days.


For instance, the Cayman company or investment fund will transfer their seat of incorporation in Luxembourg in order to become an entity duly incorporated under Luxembourg law. This would then avoid any limitation of payment of these interest and royalties.


The redomiciliation may give the fund or the SPV new advantages like the benefits of the double tax treaties; at least being established in a fully tax compliant onshore environment.


 Discover how to use our redomiciliation services to Luxembourg please contact us



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