Forms of investment and tax management with a family office

What does a family office do? What is a family office? Where to focus your investments with a family office? At Gentille Law, expert lawyers in tax law, we tell you everything you need to know about the forms of investment and tax management with a family office.

Where to focus investments with a family office?

How can a family office help me invest? There are different forms of investment through a Family Office in Spain, these investments are subject to various tax implications that must be taken into account. From Gentile Law, experts in tax law, we accompany you in complying with the tax obligations arising from these investments.

You still don`t know what a family office is? In our article "What is a family office and how does it work?" we explain the most important aspects of a family office. If you have already read our article where we explain the highlights of a family office, now let`s move on to the forms of investment.

Stock and Equity in companies

One of the forms of investment that a family office manages is through the acquisition of shares and equities of publicly traded companies. These investments allow the family to participate in the ownership of companies and obtain benefits through the appreciation of the value of the shares and the payment of dividends.

Returns earned on investments, such as dividends, interest or capital gains, are generally subject to income tax. The applicable tax rate will depend on the type of income and the tax status of the family.

Real Estate

Another popular form of family office investment is through real estate. This can include buying rental properties, developing real estate projects or investing in real estate investment funds. Real estate investments offer the possibility of generating stable income through rentals and earning profits through appreciation in property values.

When making these investments, it is important to consider tax aspects such as transfer tax and stamp duty, as well as wealth tax.

Private equity and entrepreneurship

What does a family office do? How can a family office help me with tax management and investment forms? In addition to traditional investments, Family Offices can also invest in private equity and entrepreneurship. These investments involve participation in unlisted companies and entrepreneurial projects.

Family Offices can provide capital to these companies and earn significant returns if they are successful. In many cases, these investments can benefit from tax incentives related to entrepreneurship support. Investments in start-up companies may be eligible for entrepreneurship-related tax benefits. These benefits can be leveraged to reduce the tax burden and promote the growth of certain investments.

Alternative Assets

Alternative assets are also considered by family offices in their investment strategies. This includes investments in commodities, precious metals, fine art, fine wines and other tangible assets. These investments can provide diversification and protection against market volatility. It is important to keep in mind the specific tax considerations associated with these assets, such as capital gains taxes.

What else do I need to know about the forms of investment and tax management of a family office?

What else to consider about the forms of investment and tax management of a family office? In case that the family office is structured as a company, it may also be subject to corporate income tax. This consideration is especially relevant when the family office acquires a substantial shareholding in a company and the corresponding tax obligations must be complied with.

Another important consideration is the wealth tax, which may apply in some autonomous communities in Spain. This tax is imposed on the net worth of a person or entity, so it is necessary to assess whether the investments of the Family Office will be subject to this tax and take appropriate measures for its management.

Finally, it is essential to comply with the tax reporting and documentation regulations required by the tax authorities. Keeping proper records and filing the corresponding returns in a timely and accurate manner is essential to comply with tax obligations and avoid legal problems.

Gentile Law, experts lawyers in tax advice

Do you want to know more about a family office? We recommend you read our article "What is a family office and how does it work?” Are you looking for ways of investment and tax management through a family office? At Gentile Law, experts lawyers in tax advice, we are committed to provide you with the necessary support in the planning, establishment and tax management of your Family Office.