The Spanish Association of Real Estate Consulting Companies (ACI) has warned that the tax reform proposed by the Government aimed at Socimis would put at risk up to 15,000 million euros of investment operations since 2014 in the sector in Spain.
The main real estate consultancies in Spain, members of ACI – (BNP Paribas Real Estate, Catella, CBRE, Colliers, Cushman & Wakefield, JLL, Knight Frank and Savills) believe that this would represent “a setback in competitiveness with respect to the rest of European countries and would aggravate the problems that already exist in the market.
ACI emphasizes in a statement that Socimis represent a minimum percentage of the total number of rental properties in Spainwhich is why it believes that this measure would have a “negligible” impact on increasing the supply of housing.
In fact, of the total capitalization of the 123 SOCIMIs that existed in September and which reached 24,000 million euros, only about 3,000 million correspond to residential SOCIMIs.
“We believe that the Government should reconsider this change in the tax system so as not to put in check a path of years and success in the progress of SOCIMIs in our country. This decision could lead these companies to look for other destinations outside of Spain where they can list and promote new assets,” said the president of ACI, Ricardo Martí-Fluxá.
As alternatives to solve the housing problem, The employers propose to implement public guarantees and guarantees for the purchase of housing, Tax incentives such as VAT reduction or personal income tax bonuses for both purchase and rental. In addition, it is necessary to make land uses more flexible to increase developable land and give more public land for public-private collaboration projects and thus increase the supply of housing, especially in large cities.
Merlin Properties and Inmobiliaria Colonial, the two socimis (listed real estate investment company) on the Ibex 35, have already responded to the Government’s plans to eliminate the tax regime for socimis. Both are willing to take their tax headquarters outside of Spain if the pact between PSOE and Sumar is finally consummated.
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