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Ireland is a leading jurisdiction for the establishment of special purpose vehicles (SPVs) for structured finance transactions and the unrivalled strength of the firm’s Capital Markets, Tax, Financial Regulation, Listings and Corporate Services capabilities make Arthur Cox a market leader in this area.
The predominant reasons for Ireland’s popularity as an SPV location include its developed corporate legal system, the fact that it is an ‘on-shore’ jurisdiction, the professional and administrative services that are available locally and its favourable tax regime.
Irish corporate law is effective in removing SPV counterparty risk, so enabling noteholders to be exposed only to liabilities and assets that are intended to be secured.
A minimum share capital requirement of €1 in most cases makes incorporating an Irish SPV a straightforward process. In addition, Euronext Dublin is a market leader in the listing of debt securities.
SUMMARY OF BENEFITS OF ESTABLISHING SPVs IN IRELAND
- EU jurisdiction with a broad double tax treaty network
- Common law legal system, similar in many respects to US and UK
- Favourable tax status for debt issuers which should result in: – Minimal corporate tax leakage in most cases – No withholding tax and limited VAT leakage
- Leading jurisdiction for listing SPVs
- Cost efficient jurisdiction involving: – Minimal retained profit – Competitive service provider and audit costs – Competitive and sophisticated legal market
- AIFMD certainty for debt issuance
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
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