Colonial joins Merlin and threatens to rethink its investments if PSOE and Sumar approve their tax reform

Colonialone of the two large socimis of the Ibex 35 together with Merlin, has joined the criticism of the agreement agreed between the two Government parties, PSOE and Sumar, to eliminate the socimi regime in Spain and has called it “very serious”. In addition, they have stated that if approved, their strategy and the location of their activities will be rethought. Specifically, in statements to Europa Press, its president, Juan José Brugera, has lamented that if this measure materializes, it will turn Spain into “forbidden territory” for investment international.

“The changes that some propose are very serious. The socimis regime It is nothing more than the adaptation to the Spanish case of the established norm in international markets. These types of modifications turn the Spanish market into a prohibited territory for international investment.” In his opinionthe legal framework should protect companies who have opted to attract international investment, and make it compatible with the best social purposes.

In any case, Brugera has defended that Colonial’s current business model is diversified in different geographies, with a relevant presence in the Paris market, which allows the group “a great strength in scenarios of fragility of the regulatory framework.” Although he believes that there is still no certainty regarding the change and has considered that we must wait for it to materialize, the manager has stated that the company will rethink its strategy so that these measures do not have a negative impact, including reassessing the location of your activities.

“If the reform of the legal regime of SOCIMIs is approved, Colonial will reevaluate its investment strategy and the location of its activities and its legal structure, and will adopt, where appropriate, the measures that best suit the interest of its shareholdersinvestors, all with the aim that these potential measures do not have a negative impact on society”, he concluded.

PSOE tax agreement – Sumar

PSOE and Sumar closed a tax agreement on Monday to tax banks, tourist apartments and yachts, which also includes abolition of the special tax regime of the so-called Listed Joint Stock Companies for Investment in the Real Estate Market (socimi). According to the agreement, this decision is due to the fact that These companies “only pay 1% corporate tax” and, despite the tax benefit, it has not served to improve the housing supply.

These companies are dedicated to buy real estate assets, such as apartments, offices or shopping centers to rent their spaces to tenants, companies or stores in exchange for rent, without having to pay taxes on the profits they distribute to their shareholders.

The socimis regime is subject to These companies distribute at least 80% of the profits to their shareholders.have all your acquisitions in your portfolio for a minimum of three years, be listed on the Stock Exchange, have a floating capital of 25% and distribute a minimum of 50% of the profits generated by the transfer of properties or shares. The regulation of SOCIMIs in Spain was established in a 2009 lawin the context created by the bursting of the real estate bubble, in order to provide liquidity to investments in the real estate sector, ensuring a continuous flow of investments through investors’ savings.