BUSINESS

Tax reduction, Golden Visa to boost REICs

NIKOS ROUSSANOGLOU

TAGS: Business, Property

The taxation bill’s clause revoking the huge tax hike imposed on real estate investment companies’ assets three years ago is viewed by the market as a move that will bolster the prospects of attracting capital from foreign institutional investors to local REICs.

The clause puts an end to the 2016 regulation that increased the tax on REICs’ properties and deposits to 0.75 percent per year, taking it back to the previous rate of 0.105 percent.

According to the head of Grivalia Management Company, Giorgos Chrysikos, “this is an important move that will boost the attraction of funds from companies in the sector. It would have been even better to abolish the tax altogether, or at least as far as the taxing of cash is concerned, as this generated problems in the everyday operation of REICs.”

Another potentially significant measure that will help the local sector to woo foreign investments is the capacity REICs will have from now on to address investors from countries outside the European Union who are interested in securing a residence permit in Greece, known as the Golden Visa.

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