Effective from 25 July 2018, the Hungarian Parliament has adopted further favourable changes to foster the establishment of Real Estate Investment Trusts (REITs). Rather than taxation related measures, the amendment to Act CII of 2011 on Real Estate Investment Trusts (REIT Act) aims to encourage REIT investment through the extension of allowable activities as well as introducing less burdensome profit distribution requirements.
Since the introduction of REITs into Hungarian legislation in 2011, only a few investors have made use of the investment vehicle. However, with the constant investment friendly legislation changes, REITs now represent an attractive investment platform and as such, an increase in their uptake is expected.
