Management of Investment Funds: Risk Diversification in Real Estate Investments and VAT Exemption

• The inquiry involved management services provided to an alternative investment fund.
• The fund aimed for collective investment through real estate activities in Denmark.
• The fund’s assets were in a wholly-owned subsidiary that invested in a property with residential, commercial, and parking units.
• The property was divided into condominiums.
• The tax council determined the fund’s investments did not meet the risk diversification requirement.
• Consequently, the tax council could not confirm the services were exempt from VAT under the relevant law.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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