With its new carried interest regime offering a 50% tax rebate, Spain is making a bold play for private equity talent. Clearer rules, competitive rates, and a lifestyle that blends world-class cuisine, culture, and climate are turning heads, and portfolios, toward the Iberian Peninsula.

Could a move to Spain cut your carried interest tax bill in half, without the usual legal grey zones? What if your next bonus came with sunshine, sangria, and a 50% rebate from the Spanish tax authorities? This episode in the Tax Lyrical mini-series breaks down Spain’s new carried interest regime and asks whether a five-year holding period is a gateway to major savings or a hidden pitfall waiting to catch fund executives off guard.

To unpack Spain’s new carried interest regime, Ashurst’s Patricia Allen is joined by Javier Hernández Galante. Together, they explore the key requirements, tax benefits, and common pitfalls of the new framework, as well as how it compares to previous treatment under Spanish law. “The goal is to bring clarity where there was once uncertainty,” explains Javier, highlighting why Spain may now be a serious contender for fund executives looking to optimise both tax and lifestyle.

This is the latest episode in our mini-series on tackling tax issues and investment funds. To listen to this episode and subscribe to future episodes, search for “Ashurst Legal Outlook” on Apple Podcasts, Spotify or wherever you get your podcasts.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.