This site uses cookies. and this alert will appear once and then not again.

Proposed corporate interest restrictions in Sweden

On 21 March 2018, the Swedish government put forward proposals for new corporate tax regulations. The key proposal is to limit the deduction for corporate interest expenses. The right of deduction will be based on a so-called EBITDA-rule and will be accompanied by a decrease in the corporate tax rate.

President Trump signs Omnibus Spending Bill with Favourable Real Estate Tax Provisions

On 23 March 2018, President Trump signed the Consolidated Appropriations Act of 2018 (the Omnibus Act), an omnibus government spending bill which includes several technical corrections of previously enacted tax provisions related to FIRPTA, REIT spin-off transactions, REIT income tests and the partnership audit rules. The Omnibus Act also includes new low-income housing tax credit provisions.

New Double Tax Treaty between France and Luxembourg: impact on real estate structures

The new DTT seeks to modernise the rules applying. The current treaty between Luxembourg and France was signed as long ago as 1 April 1958. The new DTT is fully “post-BEPS”. It implements the new approaches developed at international level during the OECD/G20 BEPS Project, now reflected in the 2017 version of the OECD Model Tax Convention, and in the Multilateral Convention to Implement Tax Treaty Related Measures (“the MLI”), signed by both Luxembourg and France in June 2017.

EPRA Global REIT Survey 2018

The REIT structure varies country-by-country, and it is constantly evolving. PwC have contributed the UK chapter of this European Public Real Estate Association analysis of global REITs.

Newsalert - Finnish Government proposes restrictions on interest relief

The Finnish Government have published their proposals to implement the EU Anti-Tax Avoidance Directive I (restricting interest relief), which is expected to come into force 1 January 2019. This represents a major development for the real estate industry as most real estate investors have until now been outside the scope of the Finnish interest capping rules.

Netherlands 2018 Budget Real Estate focus - update

On 18 September 2018, the Dutch Ministry of Finance announced a number of important changes and amendments to the Dutch tax legislation for 2019 and onwards, including the abolition of the current Dutch Dividend Withholding Tax Act and the introduction of a new conditional withholding tax on dividends. On Budget day, the Dutch government also issued a legislative proposal regarding the Dutch implementation of the ATAD. On 15 October 2018, the Dutch Government announced that the proposed changes have been reconsidered which has resulted in the withdrawal of the proposal to abolish the dividend withholding tax. In order to stimulate the Dutch investment climate, alternative measures have been proposed.

Changes to Hong Kong’s funds profits tax exemption

Changes are proposed to Hong Kong’s profits tax exemption for privately offered funds which will:

- unify the profits tax exemptions for privately offered funds (onshore or offshore, regardless of their structure, location of central management and control, their size, or the purpose they serve) into one comprehensive regime; and

- significantly widen the application scope of the profits tax exemption. 

See here for more information. 

German RETT exemption held not to be State Aid in case of upstream merger

In December 2009, Germany introduced an exemption from Real Estate Transfer Tax (RETT) for group restructurings.The exemption was challenged in the case of an upstream merger as infringing the State aid rules. 

The CJEU found that although there was technically state aid, it could be justified "by the nature or general scheme of the German tax system and the intention of the German provision to prevent double taxation" (it being assumed that RETT had already been paid by the group). 

Real Estate Newsalert - Expansion of RETT on shares

The discussions on the expansion of German Real Estate Transfer Tax (RETT) continue and the current proposal is that RETT will apply where 90% of the shares in a property rich company are transferred over a 10 year period (down from 95% and 5 years respectively).  In addition, the tax will be borne by the company itself. This change in particular is predicted to have a substantial impact on the real estate industry.

German Federal Ministry of Finance issues draft bill on changes to the RETT regime for share deals

The German Federal Ministry of Finance has circulated a draft bill to real estate industry associations addressing several tax changes including the upcoming changes to the German Real Estate Transfer Tax (RETT) Act. The draft legislation primarily incorporates the changes announced in December 2018, and will apply to transactions closing after 31 December 2019.

Choosing an investment vehicle - European Real Estate Fund Regimes

The AIFM Directive entered into force on 22 July 2013, and has been implemented by EU Member States, which had to consider both regulatory matters and changes to fund and investor taxation. This has resulted in significant changes in the European real estate fund landscape. 

This booklet aims to provide an overview of the most common European collective investment vehicles (CIVs) suitable for investment in real estate, including their legal form as well as their regulatory and tax position. It seeks to illustrate more than 30 different types of fund vehicles in 19 European countries in a summary form, by looking at a consistent set of key topics.