As of 2024 changes to the German interest deduction rules (“interest barrier”) were brought in with the Secondary Credit Market Promotion Act, which may be relevant for Private Equity / Venture Capital structures at portfolio level in Germany. Against this background, existing structures should be put to the test to determine whether and to what extent there is a need for action. Also, the interest barrier will play an important part in future transaction processes. In this update, we shed light on both, the key aspects of the ‘new’ interest barrier and also distinctive possible solutions.
01.02.2024
