REAL ESTATE INVESTMENT TRUSTS

WHAT IS A REIT?

These are the most suitable ways to execution of contracts related with asset acquisitions, even for a single real estate asset.   Its corporate purpose is the holding of urban assets for leasing (by means of acquisition or promotion).

Its minimum Social Capital is of 5M€, needing to be listed on regulated markets, including the Alternative Investment Market (AIM), which has a more flexible regulation.

BENEFITS FOR INVESTORS

  • Diversify portfolios with less investment.
  • Opportunity to Access to the best real estate operators in each area.
  • Excellent taxation.
  • REIT´s benefits are not taxable, shareholders only respond for the distributed dividend.
  • Easier liquidity than real estate assets.
  • As these corporations are listed in the Alternative Investment Market, shareholders are allowed to operate with the titles in easy ways and with regular market rates, so stocks can be transferred and immediate liquidity can be obtained.

TAXATION

  • Societies will tribute at zero per cent of the obtained benefits, provided that shareholders are in possession of 5% or more of the Share Capital, and they will tribute when dividends get distributed at a 10% or more. In the other way, the SOCIMI will we taxed to a special 19% rate.
  • Mandatory dividend sharing of the year´s benefit, via the distribution of at least 80% of the dividends of the incomes obtained through the activity.

HOW TO ADHERE

Circular 2/2013 of February the 13th determines the applicable regime for SOCIMIS with shares incorporating to AIM. This Circular includes the existing regulation for companies expanding (Circular 5/2010), although establishing some specific features for this new segment.

CHARACTERISTICS

Main characteristics of the current REIT regime are:

  • It’s allowed the REIT with only one real estate asset
  • Absence of debt limits.
  • Possibility of executing real estate promotion in REIT´s affiliates.