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Tuesday, 12 July 2011 09:17

REICS (Real Estate Investment Companies) are governed by the provisions of Articles 21-31 of Law 2778/1999 "Real Estate Mutual Funds - Real Estate Investment Companies and other provisions" (amended by Laws 2892/2001, 2992/2002 and 3581/2007, and Law 2190/1920), and others, which provide favourable tax treatment: no property Transfer Tax when purchasing property (otherwise 9-11%); exempt from Large Property Tax;  reduced rate Unified Real Estate Tax (only 0.1% of the Objective Value of their properties, as opposed to 0,6% normally); reduced Notary Fees; reduced rate Income Tax (based on the value of assets and calculated as 10% of the interest rate of the European Central Bank + 1%); exemption from Supplementary Tax (3% of rental income); exempt from Withholding Tax on dividends. To be eligible, REICS must not pay more than 5% higher nor 5% lower than the appraised amount ; must be held for a period of at least 1 year; must distribute at least 35% of their profits (they are usually much higher); the minimum a REIT can trade via the stock market is 25% of its holdings.

Last Updated on Wednesday, 28 September 2011 10:53