The passing of the resolution will generally constitute a taxable event for investors in most EU jurisdictions. The exchange of your Notes for bonds is treated as a disposal of the Notes and an acquisition of the bonds — even though no cash is received, this is typically considered a realisation event for tax purposes, meaning any gain or loss is crystallised at the point of exchange.
The exchange is structured 1:1 at nominal (face value), so you receive bonds with a face value equal to your Notes; however, for tax purposes, the value of what you receive will be based on the value of the Notes purchased rather than simply their nominal value. Following the exchange, the purchase price (cost basis) of the bonds will correspond to the original purchase price of the Notes.
If a taxable event arises, you will generally need to report it in your annual tax return for the year of the exchange — Mintos will provide transaction documentation to support your filing, but you remain responsible for correctly reporting under the rules of your country of residence.
Unlike the Notes, where withholding tax was deducted at source by Mintos, interest payments on the bonds will be made gross — meaning no withholding tax will be withheld, and investors will be responsible for declaring and paying any applicable tax on bond interest directly in their country of residence.