How the Perrodo Family Used Luxembourg Convertible Preferred Equity Certificates to Avoid Taxes

On December 8, 2022, Investigate Europe published an investigative article titled Explainer: How Tax Engineering Works in Luxembourg. The report exposed how the wealthy Perrodo family utilized Luxembourg’s Convertible Preferred Equity Certificates (CPECs) to avoid taxes on profits from their real estate investments in Spain.

Before diving into how the Perrodo family achieved tax avoidance, let’s first explain what CPECs are and why they are effective for tax planning.