With the aim of stimulating the rental market in Spain, providing liquidity through investments and with a notable profitability, in mid-2013 the so-called REIT, technically known as Real Estate Investment Trust flourished, listed on the Spanish stock market.
In Spain this type of company is regulated by Law 11/2009, a law that aims to establish the necessary legal framework for these companies.
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Main Function of a Real Estate Investment Trust
The main function of this innovative company is to acquire, develop and rehabilitate urban assets for leasing.
Investment requirements to incorporate a Real Estate Investment Trust
o They must have a Real Estate property.
o Minimum capital of 5 million euros.
o Placement of 80% of its assets in Real Estate or Urban Land, intended for rental, all with a permanence in the company of at least 3 years.
o The Socimi must have at least 50 shareholders.
o They must be listed on a regulated Spanish or European market.
o They must have at least three properties in their assets, each representing no more than 40% of the assets at the time of acquisition.
o They may only grant financing up to 70% of the assets, i.e. they cannot have inadequate debt exceeding 70% of their asset portfolio.
Through our specialist advisors in offshore company incorporation you can obtain more information on this subject or any related question about our services, contact us directly through: info@fosterswiss.com