Institutional Framework
REICS in Greece are governed by the provisions of article 19 of Law 4141/2013 as this amends articles 21-31 of Law 2778/1999 “Real Estate Mutual Funds – Real Estate Investment Companies and other provisions”, as amended by Laws 2892/2001, 2992/2002, 3581/2007, 4209/2013, and 4389/2016, as well as the provisions of Law 2190/1920.
The objective of the Company is the conduct of investments and more specifically the acquisition and management of real estate, pursuant to article 22 of Law 2778/1999, as in force each time.
The Company is supervised by the Hellenic Capital Market Commission which granted it operating license No. 5/266/14.03.2003.
The institutional framework is supplemented by the stock market legislation, which applies to all listed companies – as all REICs must be listed within a certain time period – and by provisions of the Capital Markets Commission.
Greek REIC requirements
Asset requirements
- At least 80% of the assets must be invested in real estate
- Development cost must not exceed 40% of the REIC’s investment assets
- Single property value cannot exceed 25% of the REIC’s total investments
- Assets for REIC operations cannot exceed 10% of the REIC’s total assets
Profit distribution / Leverage
- At least 50% of the annual net distributable profit
- Capital gains do not need to be distributed
- Overall leverage must not exceed 75% of REIC’s total assets
Legal requirements
- Incorporated as a “Societe Anonyme” with a minimum capital of €25m
- Mandatory listing on a regulated market operating in Greece
- Statutory seat must be in Greece
Greek REIC’s Tax Regime
| Tax efficient structure | |
|---|---|
| Income Tax: | REICs are subject to tax on the average of the fair market value of their investments, (including cash items) at a rate equal to 10 per cent of the interest rate provided by the European Central Bank for main refinancing operations increased by one percentage point. Relevant tax is paid on a six-month basis. |
| Advance Tax: | 0.0% |
| Capital gains Tax: | 0.0% |
| Dividend Tax: | 0.0% |
| Annual Property Tax: | Main tax (variable) & Supplementary tax @0.35% due for all leased buildings, and @0.1% for owned use buildings. Self-used buildings exempt |
| Real Estate transfer Tax: | 0.0% |