* Germany To Follow UK With Introduction Of Property Trusts
Germany is soon expected to become the latest European country to adopt tax efficient real estate investment trusts (REITS), following hot on the heels of the United Kingdom, which is planning to introduce the vehicles within the next two years. Speaking to Reuters at the recent European Public Real Estate Association's (EPRA) annual conference in Berlin, EPRA chief executive Nick van Ommen predicted that Germany would introduce property investment trusts by the end of 2005 or beginning of 2006.
"I know there are already people working behind the scenes to make it happen here in Germany," Van Ommen noted.
REITS, which are well established in the US and Australia, are considered more attractive than direct investment in property, as no tax is paid on rental income or capital gains, and limited tax is paid at corporate level, provided a set level of income (typically 80% to 100%) is paid to investors as dividends.
European countries that have adopted these property investment structures include Belgium, Holland and France, and the UK has recently consulted the property industry on its proposals for the introduction of ‘Pifs’ (Property Investment Funds) with a view to launching them in 2005 or 2006.
Finland and Sweden are also said to be considering similar structures
