The Rise of Socimis as an Investment Vehicle | Oct 2022

Elsa Ochoa Acereda

eo@blaw.es

B Law & Tax

www.en.blaw.es

SOCIMIs arise in Spain with Law 11/2009 2009 following the example of REITs and are companies designed to channel investment in real estate assets for rental, since taxation shifts from the company to the partner, by establishing a tax rate of 0 % in Corporate Tax for this type of company.

SOCIMIs must meet the following requirements, established in the statute:

  • Specific corporate purpose
  • Minimum 5M € capitalization
  • Admitted to trading on a regulated
  • Obligation to distribute a minimum percentage of profits
  • Investment of, at least 80%, in real estate

They are also obliged to distribute a minimum percentage of profits, depending on their origin. However, full distribution of profits is now incentivized by the new special taxation of 15% established on undistributed profits for periods beginning on or after January 1st, 2021.

In the current economic context of rising inflation, SOCIMIs are proliferating as one of the safest and most profitable investment vehicles, especially for private investors, both due to the boom in the rental market and the interesting tax regime.

 

XLNC TFG Newsflash| October 2022

 

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