Less than a year ago, Spanish government decided to eliminate one of the main advantages for sicavs, which was their ability to reduce its capital without having to inform the IRS.
The decision led many experts to predict that the future for this investment vehicle, linked primarily but not only to wealthy investors, was to disappear.
However, the political change inside the Spanish Government has dispelled uncertainty about sicavs taxation. Few people believe sicavs will no longer be taxed at 1 percent in income tax, their main tax advantage to date.
That explains their current boom. New sicavs registrations grew by 73 percent, the highest level since the second half of 2008.
