Are there any tax incentives available for foreign lenders lending into your jurisdiction?

Lending & Secured Finance

Croatia Small Flag Croatia

At this moment, there are no tax incentives available or provided for foreign lenders in Croatia.

Czech Republic Small Flag Czech Republic

Also, there are no such tax incentives.

Finland Small Flag Finland

There are no special tax incentives available in addition to the fact that interest payments to non-Finnish tax residents are generally not subject to any withholding tax.

Germany Small Flag Germany

No (but in most cases, the interest payments received by foreign lenders are not subject to German tax, as set out above).

Spain Small Flag Spain

There is not any tax incentive available for foreign lenders lending into Spain, except the exemption stated in the Spanish non-resident income tax act or in the relevant double taxation treaty.

Philippines Small Flag Philippines

There are currently no tax incentives for foreign lenders. Any foreign loan related tax incentives are given to the borrowing company in the case of enterprises registered with the Board of Investments or the relevant economic zone authority, but not to the foreign lender.

Sweden Small Flag Sweden

There are no tax incentives available for foreign lenders lending into Sweden.

Turkey Small Flag Turkey

Foreign investors in particular are encouraged to enter into the market by various incentives provided mainly under the Foreign Direct Investment Law (Law No. 4875) which gives a very broad definition of foreign investment, enabling many investors to benefit from such incentives. Furthermore, foreign investors also benefit from noteworthy tax incentives (i.e. VAT exemption, customs tax exemption, VAT return, income tax discount, depending on the place and volume of investment) alongside the tax exemptions in place for health public private partnership projects.

United States Small Flag United States

No, the United States does not currently have a tax incentive program for foreign lenders. The U.S. financing market does include certain tax-advantaged bonds where qualifying state and local bonds pay interest that is not subject to United States federal tax (and sometimes state and local tax as well) or feature U.S. tax credits and/or federal subsidies.

Switzerland Small Flag Switzerland

There is no such tax incentive available in Switzerland.

United Kingdom Small Flag United Kingdom

There are no preferential UK tax incentives specifically available for foreign lenders.

Jersey Small Flag Jersey

No. As an offshore international finance centre, Jersey does not offer tax incentives to foreign lenders lending into Jersey.

Hong Kong Small Flag Hong Kong

No.

Austria Small Flag Austria

Foreign direct investment that involves a substantial transfer of important technology and leads to job creation may be eligible for investment incentives and R&D subsidies, although these must conform to EU policies on regional investment and state aid. Austria largely relies on its low corporate tax rate to attract foreign investors but also offers a tax incentive for R&D. Taxpayers may claim a subsidy in the form of a cash tax premium equal to 12% of qualifying R&D expenses. Social security costs may be reduced or training funds may be available for certain categories of workers who find it difficult to obtain employment or need to improve their skills.

Mexico Small Flag Mexico

A Presidential Decree granting a new set of income tax incentives to capital gains and interest derived from corporate bonds became effective on Jan. 9, 2019.

With the aim of incentivizing the corporate bond and private equity markets in Mexico, interest paid to investors abroad and profits realized from the disposition of certain shares by Mexican individuals and non-Mexican tax residents are subject to certain tax incentives.

Bosnia & Herzegovina Small Flag Bosnia & Herzegovina

No, there have not been any known cases of government tax incentives for foreign lenders.

Updated: June 5, 2019