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Sunday, 10 July 2011 09:41

SICAFI (established by Royal Decree in early 1995) stands for Fixed Capital Real Estate Investment Trust, and are collective investment undertakings (OPC) that directly or indirectly hold property assets either via a limited liability company or public limited partnership, which can be compared to Dutch FBIs (Fiscale beleggingsinstellingen), French SIICs (Sociétés d’Investissements Immobiliers Cotées), or US REITs. SICAFI are regulated by the Banking, Finance and Insurance Commission’s (CBFA) extremely strict rules that include: -

  • a 20% cap any property value relative to total asset value;
  • a debt cap of 65% to total asset value;
  • a requirement to list at least 30% of their shares on the stock exchange.
  • compliance with the IAS/IFRS Standard 40 on the fair value of properties in annual accounts;
  • no depreciation;
  • distribution of 80% (minimum) of the net revenue after net capital gains on any realisation of investment properties not exempt from the distribution requirement and any net decrease during the financial year.
  • exemption from Corporate Tax (except on non-allowable expenses (DNA) and abnormal or benevolent benefits), provided that at least 80% of net proceeds are distributed in the form of dividends.
  • a Withholding Tax on dividends of upto 15% (0% for a SICAFI with more than 60% of its investments in residential).

Financial Services and Markets Authority (FSMA) :


Last Updated on Monday, 21 November 2011 08:54