One of the words that has begun to be heard more loudly in the investment world after the economic crisis that Spain has gone through is that of "investment in the Spanish economy". SOCIMI. At Gesvalt we are specialists and we offer specialised services. We explain what a SOCIMI.
What is a SOCIMI, how does it behave and what are the key issues to be aware of?
Definition of SOCIMI: As described by Expansión in its Diccionario Económico, SOCIMIs, or Sociedades Anónimas Cotizadas de Inversión Inmobiliaria, are “listed public limited companies whose main activity is the acquisition, development and rehabilitation of urban assets for leasing, either directly or indirectly”.
How are SOCIMIs known in the international world?
The term SOCIMI is an adaptation of the so-called SOCIMIs. REIT (Real Estate Investment Trust).
This type of company still raises doubts as to its meaning and requirements. Here are some of them:
What is the legislation affecting SOCIMIs?
SOCIMIs are regulated by Law 11/2009 of 26 October 2009, amended by Law 16/2012 of 27 December 2012. This reform aims to make SOCIMIs' incorporation requirements more flexible, remove regulatory barriers and improve their tax treatment.
What are the requirements to become a SOCIMI?
A SOCIMI can be recognised as a company listed on the Spanish or European market, with investment and equity requirements and a share capital that must be at least five million euros, in cash or real estate.
What is the minimum number of assets you must have?
At least one, within or outside the national territory.
Where must your income come from?
At least 80% of the income must come from rental activity or dividends from other SOCIMIs. The other 20% must be unrestricted.
What do we need to know in terms of taxation?
SOCIMIs are taxed at a rate of 0% in IS, with the exception of ITP and AJD. Capital gains generated in SOCIMIs are not taxed.
Do you have a limit on borrowing?
No, although it has to allow for the distribution of dividends.
What should your quotation look like?
There is an obligation to trade on a regulated market or on the Mercado Alternativo Bursátil (Alternative Stock Market).
And what about dissemination?
Must be held by minority shareholders, i.e. shareholders with less than 5%. The lesser of 25% of the Share Capital or two million Euros in shares. If this is not the case, a Diffusion contract is sufficient.
One of Gesvalt's areas of expertise is the consultancy and real estate advice on SOCIMI IPOs. Do not hesitate to contact us, we will be happy to contribute to the success of your operations.