Nordic Tax Views: What is carried interest and how is it taxed in the Nordics?

“Carried interest,” also known as “carry,” refers to a portion - disproportionate to the invested capital - of the profits that certain fund management teams receive as compensation for managing the fund’s investments. This form of compensation is a prevalent practice in the private equity, venture capital, and hedge fund industries, and is also used in other types of funds as for example infrastructure funds. The tax treatment of carried interest varies by jurisdiction and the tax treatment can be complex and sometimes uncertain. Together with Nordic law firms Vinge, Thommesen, Logos and Borenius, we have summarised how carried interest is taxed in the Nordic countries.

 

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