Location Promotion Act (StoFöG)
Does the StoFöG deliver on its promise?
In a recent article published in VentureCapital Magazine, Lutz Boxberger, General Counsel and Managing Director at Golding, provides an assessment of the implications of the StoFöG from the perspective of institutional investors and fund managers. The focus lies on the expanded investment opportunities for special funds, the reduction of administrative burdens, and the resulting increased flexibility for allocations to alternative asset classes.
At the same time, key challenges remain. In particular, the lack of tax transparency for investment funds and the resulting implications for international investors underline that investor-ready structures continue to be critical. Questions around access routes, tax classification, and international compatibility will remain central to fund structuring going forward.
The article therefore highlights not only the progress brought about by the StoFöG but also the limits of the reform and outlines which structural solutions will remain necessary to sustainably strengthen Germany as a fund domicile in an international competitive environment.
Read the full article here.
