Exit taxation operates in the tension between European mobility freedom and Member States’ fiscal interests. The taxation of mere book gains, which are not accompanied by a corresponding cash inflow, inherently creates hardship and naturally raises the question of the form of tax collection. With the abolition of permanent tax deferral for EU/EEA cases as of January 1, 2022, the German legislator opted for a tightening of the rules. In the pending preliminary ruling procedure “Gena” (Case C-430/25), the Court of Justice of the European Union (CJEU) now has another opportunity to address exit taxation and its method of collection. more…
Infrastructure Funds in Transition – New Opportunities for Institutional Investors
The expansion of transport networks, energy infrastructure, digitization, and municipal facilities requires significant investment. In addition to public funds, private capital is increasingly gaining importance. In this article, POELLATH fund experts Dr. Jens Steinmüller, Dr. Tobias Lochen, and Dr. Philipp Ahlers examine current regulatory developments that are making infrastructure investments via fund structures more attractive. more…
Continuation Investments – Market Trends, Governance and Deal Terms
In this episode of our Private Equity Talk, Petr Poldauf (Schroders Capital) and Dr. Robert Eberius (POELLATH) discuss the role of continuation funds in today’s private equity market. more…
New EU Anti-Money Laundering Package and its implications for foundations and trusts as well as their subsidiaries
The prevention of money laundering and terrorist financing has long been governed by extensive due diligence and reporting obligations already in place under existing national and EU law. In Germany, these obligations are laid down in the German Money Laundering Act (Geldwäschegesetz, GwG) and largely stem from European directives. As of 10 July 2027, the existing national legislation on anti-money laundering will be largely replaced by a harmonized EU-wide regulatory framework. Its core element is the EU Anti-Money Laundering Regulation (Regulation (EU) 2024/1624 – AMLR). This unification of national regimes will be accompanied by a significant expansion of both due diligence and reporting obligations. more…
Positive ruling by the Federal Court of Justice on call options in management participation programs (MPPs)
The Federal Court of Justice (BGH) has issued a statement on the validity of free termination clauses and thus on call options in the context of PE management participations. The ruling deals with the practically significant question of which aspects must be considered when assessing the validity of call option clauses. In particular, the BGH examines the economic purpose of management participation programs. more…
Another positive ruling by the Federal Fiscal Court on the taxation of management participation programs
The German Federal Fiscal Court (BFH) has amended its case law on the distinction between types of income regarding employee and management participations. According to this amendment, it is no longer necessary to weigh up all factors when distinguishing between income from capital assets and income from employment, provided that the participation is effectively established and carried out in accordance with the contract. Income from such participation is generally classified as income from capital assets. more…
Planned Revision of the Attribution Taxation of Foreign Family Foundations and Trusts
The German Federal Government plans to revise the so-called attribution taxation applicable to German-resident founders/settlor and beneficiaries of foreign family foundations and trusts under Section 15 German Foreign Tax Act (Außensteuergesetz – AStG). By circular dated 18 November 2025, the German Federal Ministry of Finance (Bundesministerium der Finanzen – BMF) published a draft legislative proposal to that effect and opened a public consultation, inviting associations and professional stakeholders to submit comments by mid-January 2026. more…
Private Clients – Legal framework and use cases
The Lexology Private Client Germany 2026 Guide provides a comprehensive overview of German private client law. It addresses key issues relating to taxation, wealth structuring, succession planning, foundations and trusts, as well as current legal and tax developments, with a particular focus on high-net-worth individuals and cross-border matters. more…
Update on the Fund Risk Limitation Act – Government draft introduces important changes
On 29 October 2025, the German government adopted the draft law on limiting the risks posed by investment funds and implementing further EU directives (Fund Risk Limitation Act – FRiG) and formally introduced the draft law into the legislative process by forwarding it to the Bundesrat on 7 November 2025. Compared to the draft bill, the ministerial draft of the FRiG contains significantly less national gold-plating and some welcome clarifications. more…
Government draft of a Location Promotion Act passed
On the 10th In September 2025, the Federal Cabinet adopted the draft for a “Location Promotion Act”. The aim is to promote investments in infrastructure, renewable energies and venture capital as well as to strengthen Germany’s financial centre. Provided are e.g. Changes for investment funds that bring more legal certainty, but also additional tax burden. more…
Fund Risk Limitation Act – German Legislator launches new attempt
On 8 August 2025, the draft bill of the “Fund Risk Limitation Act” (Fondsrisikobegrenzungsgesetz – FRiG) was published. With the draft bill, the legislator launches a new attempt to implement the European requirements of the AIFM Directive II (so-called AIFMD II) into German law. Implementation in Germany is primarily being carried out through amendments to the German Capital Investment Act (Kapitalanlagegesetzbuch – KAGB). Alternative investment fund managers (AIFMs) authorized or registered under the KAGB must now promptly adapt their business models and processes to the upcoming changes. more…
Good news for German Founders and Beneficiaries of foreign Foundations and Trusts
In its ruling of 3 December 2024, the Federal Fiscal Court clarified that the so-called escape clause to avoid attribution taxation is also applicable to foundations and trusts domiciled in third countries, such as Switzerland. The judgement strengthens the free movement of capital and creates more legal certainty for international succession and asset structures. more…
Q&A on the German Venture Capital market
Learn more about the German practice of venture capital law, including equity structure, typical investment periods, incentives as well as insights and opinions on the most common legal issues. . more…
Decree of German Ministry of Finance on crypto assets – Investors must act
The German Federal Ministry of Finance (BMF) has revised the 2022 letter on the taxation of crypto assets and published it in a new version on 6 March 2025. The substantive legal assessment of most issues has not changed – but the tax authorities are significantly increasing the procedural pressure, particularly on private investors. Some expected issues have still not been addressed. more…
US Tax Withholding Considerations for LP Secondary Transactions
When a non-US person sells an interest in an entity that is treated as a partnership for US tax purposes, such as a private investment fund, the buyer may be required to withhold and remit to the US Internal Revenue Service a portion of the purchase price, unless the buyer receives from either the seller or the partnership a certification that no withholding is required by reason of an exemption. A buyer that fails to withhold may be liable for the underlying tax, and in some cases the partnership may be required to withhold from future distributions to the buyer or be liable for the underlying tax. This article provides an overview of the two applicable withholding regimes in the context of LP secondary transactions. more…