Acquisition tax optimisation: structuring the deal

A few mechanisms shape the taxation of most acquisitions, in forms that vary by country:

• Purchase via an acquisition holding, which carries the debt and receives the target's dividends.
• Deductibility of acquisition-debt interest, capped and framed differently across member states.
• Tax consolidation regimes between holding and acquired company, where they exist.
• Transmission regimes (allowances, deferral) on the seller's side, which influence price negotiation.

The holding structure often lets the acquired company's dividends flow up to the holding to repay the acquisition loan, with favourable tax treatment where a parent-subsidiary regime applies.

But the real benefit depends on the country's tax regime, the interest-deductibility cap and dividend taxation. A structure that works in France can lose all its value in another member state.

There is no harmonised acquisition taxation in the EU. The corporate tax rate, the interest-deduction cap, the treatment of the seller's capital gains and transmission allowances are set by each country.

The tool presents the mechanisms generally and helps you frame the right questions, without imposing a France-centred framework or putting forward figures that could become outdated.

This module is not tax advice: it prepares you to talk effectively with an accountant or tax lawyer in the target's country. You arrive with an understood structure and precise questions, which saves time and money.

The module is available via the Solutions AI page. Pair it with the status and holding choice for overall consistency.