SOPARFI
The société de participations financières (SOPARFI) is a company structure designed to optimise the management of a group of companies. Its potential field of activity reaches well beyond the mere holding of assets. A SOPARFI, which can take advantage of the network of double taxation treaties, may engage in any activity relating to the ownership and control of shares. It can also engage in connected activities relating to the management of its holdings (such as the provision of financial advice or financing activity) and any other commercial activity that is directly or indirectly linked to the management of its holdings.
In keeping with the regime of the Parent-Subsidiary Directive a SOPARFI can, under certain conditions, profit from tax-free dividends paid by companies in which the SOPARFI owns a holding. Likewise, capital gains realised on the sale of holdings is tax-free under clearly defined conditions. If the SOPARFI engages in commercial activity, this is subject to income tax and VAT.
Aside from its role as a group parent company, the SOPARFIs can also be used in the structuring of real estate portfolios.
Practical guide:
How to set up a SOPARFI