Higher returns thanks to preferential tax treatment
Benefits of tax optimisation in REITs
Tax optimisation in REITs consists of using the legal and tax framework of these funds in order to minimise the tax burden. REITs usually enjoy preferential tax treatment, e.g. exemption from corporate income tax, provided that at least 90% of the income is paid out to shareholders in the form of dividends. This allows investors to enjoy higher returns and real estate funds to maintain their liquidity and develop real estate portfolios while optimising their tax burdens.