New developments affecting fund managers, entrepreneurs and impatriates

Key aspects

> Additional remuneration paid to managers of private equity and venture capital funds in compensation for their successful management (known as “carried interest”) qualifies as employment income for personal income tax purposes and will be included in the taxable base at 50% of its amount (if certain requirements are met) with the aim of promoting investment.

> To foster startups driving innovation, it introduces tax benefits and flexibility by applying certain rules to attract talent and investment in startups (taxation of stock options, investment tax deductions and the reduced taxation of startups).

> It modifies the impatriate tax regime to attract entrepreneurs and workers residing abroad, including so-called “digital nomads.”