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Tuesday, 28 June 2011 03:36

Spain introduced REIT legislation in 2009 permitting ‘Sociedades de Inversion en el Mercado Inmobiliario’ (SOCIMIs) Joint Stock Companies which must be listed; hold at least 85% of (original) assets in ‘urban’ property (and 80% thereafter); have Euros15m minimum capital; distribute at least 90% of rental income to shareholders and 50% of the proceeds from sales; have no more than 80% leverage; own at least 3+ properties (with none exceeding 40% of the total value); and hold properties for at least 3+ years (7 if developed). Spanish REITs are taxed @18% but ordinary shareholders are then exempt from further tax on the dividends they receive.

 

Amendments to Spain’s REIT legislation in 2013 has reduced the tax burden for Spanish property investors and Lar Espana and Hispania Activos Inmobiliarios, two externally-managed Socimis, were quick to list their shares.

 
“Also, they have to have minimum capitalization of €5 million ($5.3 million) and at least 50 shareholders, so this makes them relatively easy and cheap to establish,” he said.
 
Ranera noted that according to Spanish regulations, 80% of a REIT’s assets need to be under a lease agreement.
 

- See more at: http://www.hotelnewsnow.com/Article/15503/Barcelos-REIT-fills-investment-void-in-Spain#sthash.BFmxArF6.dpuf

Under Spanish law, REITs are required to return 80% of their profits to shareholders and there are no taxes on earnings, according to Sergio Miguez, a member of the executive committee of the Iberian chapter of the Chartered Alternative Investment Association.
 
“Also, they have to have minimum capitalization of €5 million ($5.3 million) and at least 50 shareholders, so this makes them relatively easy and cheap to establish,” he said.
 
Ranera noted that according to Spanish regulations, 80% of a REIT’s assets need to be under a lease agreement.
 

- See more at: http://www.hotelnewsnow.com/Article/15503/Barcelos-REIT-fills-investment-void-in-Spain#sthash.BFmxArF6.dpuf

 

Under Spanish law, REITs are required to return 80% of their profits to shareholders and there are no taxes on earnings. Also, they have to have minimum capitalization of €5 million ($5.3 million) and at least 50 shareholders (so this makes them relatively easy and cheap to establish), and 80% of a REIT’s assets need to be under a lease agreement.

 

For more detail, see - Link.

Last Updated on Tuesday, 18 August 2015 02:12