Tax planning forms a natural part of any decision-making process regarding the optimal structure of foreign investments. Strangely enough, until recently, BIT-planning (i.e., planning to protect the i…
The Importance of Bilateral Investment Treaties (BITs) When Investing in Emerging Markets
In Brief
- When contemplating foreign direct investments, BIT due diligence should be undertaken to analyze not only the tax efficiency of a particular investment vehicle, but also the existence and substance of BITs to which the host country is a signatory.
- Practitioners should use a Dutch or Curacao entity and the associated extensive BIT treaty network of the Netherlands and Curacao when investing in countries that are perceived to be politically unstable.
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