A REIT – Higher Return for Investors
REIT stands for Real Estate Investment Trust. REITs are well established in many countries worldwide and represent a widely recognised form of indirect property investment. In Germany, they consist of listed companies that largely invest in property as well as in property participations.
REIT shares can be rapidly and easily bought and resold on the stock exchange.
High Payout Ratio
90% Profit Dividends
German REITs have a payout ratio fixed by law of at least 90% of the net income according to German commercial law.
High Profitability after Tax
No Income Tax at Company Level
German REITs are not subject to corporation tax and business tax. Only the dividends are taxable at shareholder level, and even then at a maximum tax rate of 25% plus Solidarity surcharge. Companies and non-resident shareholders can, under certain conditions, limit the tax rate to 15%.
High Level of Security
Security through Equity Strength
German REITs have to show an equity ratio of 45% of their real estate assets on each balance sheet date.