Polish REITs are back
The Ministry of Finance has recommenced the works on the draft law on Polish REITs (new Polish acronym: FINN, which stands for “Firmy Inwestujące w Najem Nieruchomości”). Interestingly, it coincides with the current lively discussion about investments in the rental residential market, which was also the topic of last week's REMeeting conference.
The official draft law has not yet been presented, but some information regarding FINN has been published in the official journal.
FINN are to operate in the form of joint-stock companies, and their main business will concern renting residential real estate.
According to the official info issued by the Ministry of Finance, FINN will be subject be preferential taxation rules, which assume:
- introduction of a 8.5% CIT rate on FINN's income from the rental of residential real estate;
- deferral of the obligation to pay CIT by FINN on income from the rental of residential real estate and from the sale of such real estate – until its equivalent is paid out to investors (shareholders) in the form of a dividend;
- tax exemption for FINN subsidiaries in respect of income from rental of residential real estate and from the sale of residential real estate, provided that the dividend is paid to FINN on a given date;
- CIT and PIT exemption for FINN investors on income from capital investments in FINN.
FINN will be a public company – that is, FINN stock will have to be admitted to trade on the regulated market.
Please note that in the course of legislative process, presented assumptions may be subject to significant modifications. We will inform you about further works on the act and its modifications.
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