UCITS
The Undertakings for Collective Investment in Transferable Securities (UCITS) framework is one of the most respected and established regulatory standards for investment funds in Europe. As an investor, UCITS provides you with a well-regulated, transparent, and tax-efficient investment structure. At Arcelium, we offer UCITS-compliant funds that not only provide access to a wide range of asset classes but also offer significant tax advantages.
Tax-Transparent Structure: UCITS funds are typically structured in a tax-efficient manner. In most jurisdictions, UCITS funds are tax-transparent, meaning that the tax treatment is passed on directly to the investors. This allows investors to avoid paying tax at the fund level, and instead, only pay tax on their individual income or capital gains when they receive a distribution or realise a gain.
Diversified Investment Options: UCITS funds are highly regulated and offer a range of asset classes, from fixed income to equities to digital assets. This wide range of options gives you the flexibility to diversify your portfolio in a tax-efficient way, ensuring that you are not overly concentrated in any one asset type or tax jurisdiction.
Cross-Border Tax Efficiency: UCITS funds are designed to be marketed across all EU member states, meaning they benefit from passporting rights within the EU. This facilitates the management of cross-border tax implications, as UCITS funds are subject to uniform tax treatments across EU jurisdictions. Additionally, these funds can be structured in such a way as to minimise withholding taxes on distributions.
Capital Gains Tax Deferral: UCITS funds typically allow for the deferral of capital gains tax until a sale or redemption of the fund units. By investing in a UCITS fund, you can benefit from compounding returns without paying tax on gains each year. This feature is particularly advantageous for long-term investors looking to grow their wealth.
Tax-Advantaged Dividends: UCITS funds may also offer opportunities for tax-advantaged dividend income. Many UCITS funds are structured to minimise the tax burden on dividend distributions by utilising various withholding tax treaties between the fund’s jurisdiction and the investor’s country of tax residence. This can lead to more favourable tax treatment on dividend income.
Regulated and Safe: The UCITS framework offers one of the highest standards of investor protection in Europe. This high level of regulation ensures transparency, risk management, and compliance, providing additional peace of mind that your tax-efficient investments are also secure.
