Tax cut provides major boost to Greek real estate investment companies

Tax cut provides major boost to Greek real estate investment companies

Greece's real estate investment companies (REICs) will see a substantial benefit from a tax cut affecting the sector announced by the conservative government, analysts and industry officials tell

The tax cut has been included in legislation the Finance Ministry is finalising, making good on a pre-election promise made by conservatives New Democracy in the run up to July's general elections.

As of a next year, a 0.75 percent levy imposed on assets owned by REICs will be dropped, boosting net earnings. The tax had been introduced in 2016 by the previous left wing government in a move that weighed heavily on the sector.

"Especially for the bigger players, this will make a real difference on profits as of 2020," says one official.

Greece's REICs have been snapping up commercial assets in a bid to take advantage of a market upturn, focusing on office buildings and hospitality properties. Prodea Investments, controlled by UK's Invel Real Estate, is the country's largest REIC with a portfolio of more than two billion euros. Other players in the sector include Trastor, Briq and Intercontinental International.


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