Industry association Finans Danmark has welcomed the adoption by Denmark's Parliament of changes to tax law on investment funds, which should make it more attractive for local investors to put their money in equity based investments, while increasing opportunities for Danish fund managers to export their products internationally.
In effect, the new law levels the playing field between managers offering Danish funds and those offering foreign funds.
Birgitte Søgaard Holm, director Investments and Savings at Finans Danmark (pictured), said: "This is a big step in the right direction, which will benefit all investors in investment funds. It can contribute to encouraging investments, which would benefit society as a whole."
"The new rules make it more attractive for foreign investors to invest in Danish investment funds, and thereby attract capital to Danish businesses and investment institutions. The rules simultatneously give Danish investors the opportunity for a more suitable taxation of returns when investing in, among others, foreign ETFs - an opportunity that ensures Danish investors get more choice when they are putting together their portfolios."
For a typical investor with a DKK500,000 (€67,000) portfolio, the new tax law means post tax return would be DKK18,350 against DKK16750 under the old rules.