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%