The document attempts to reflect on the peculiarities of the property market as an alternative to institutional investment and its relationship with the legal and tax structures it is regulated by. In this sector, unlike others, individuals and legal entities compete for the same assets. The tax inequality of both groups puts the corporate institutional investment at a disadvantage in the face of other foreign investment groups, which are open from a tax point of view. This inequality has two main consequences: the loss of competitiveness in the face of countries with open vehicles, and the investment disincentive in the face of intensive rental products in management such as housing rental. The Spanish case has been analyzed, and a proposal to modify the existing legal system has been put forward. This would allow for the possibility of adopting an open tax system, having first complied with the minimum requirements, which must not entail excessive restriction of the company's management. This system should not involve the disappearance or the modification of similar products that already exist in Spain (property investment funds and property investment societies), since these can play an important role in the segment not listed on the Stock Market.

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Mendiluce Fradera, Eduard

El mercado inmobiliario español: propuesta de implantación de un régimen REIT

04/2005
The document attempts to reflect on the peculiarities of the property market as an alternative to institutional investment and its relationship with the legal and tax structures it is regulated by. In this sector, unlike others, individuals and legal entities compete for the same assets. The tax inequality of both groups puts the corporate institutional investment at a disadvantage in the face of other foreign investment groups, which are open from a tax point of view. This inequality has two main consequences: the loss of competitiveness in the face of countries with open vehicles, and the investment disincentive in the face of intensive rental products in management such as housing rental. The Spanish case has been analyzed, and a proposal to modify the existing legal system has been put forward. This would allow for the possibility of adopting an open tax system, having first complied with the minimum requirements, which must not entail excessive restriction of the company's management. This system should not involve the disappearance or the modification of similar products that already exist in Spain (property investment funds and property investment societies), since these can play an important role in the segment not listed on the Stock Market.
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El mercado inmobiliario español: propuesta de implantación de un régimen REIT
Mendiluce Fradera, Eduard
Barcelona (Spain) 04/2005

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