The tax status governing Real Estate Investment Companies is provided for in article 31 of Law 2778/1999, as amended from 01/06/2016 from article 45 of Law 4389/2016.

Main Points:

Real Estate Investment Companies are required to pay tax at a coefficient set at ten per cent (10%) of the main refinancing operations rate (MRO) of the European Central Bank with a spread added of one percent (1%). The tax is calculated on the half-yearly average of the Real estate investment company assets, at current prices, as presented in the half-yearly investment tables provided by paragraph 1 of article 25 of Law 2778/1999.

In case of a change to the MRO the new tax level is applicable as of the first day of the month following the change. The half-yearly tax due may not be less than 0.375% of the half-yearly average of the Real Estate Company’s assets, at current prices, as presented in the half-yearly investment tables provided by paragraph 1 of article 25 of Law 2778/1999.

The tax is paid to the appropriate tax authorities within the first fortnight of July and January of the semester following the calculation.

In case of withholding tax on dividends acquired, the tax is offset with the tax resulting from the statement made by the Real Estate Investment Company in July. Any credit balance transferred for offsetting subsequent statements. This tax payment constitutes the sole tax obligation of the REIC and of its shareholders.

The provisions of Law 4174/2013 are applied accordingly to the tax due under the provisions of this paragraph. For the dividends distributed to shareholders, provisions of Articles 62 and 64 of Law 4172/2013 do not apply. In calculating the above tax,  are not taken into account the properties held directly or indirectly by subsidiaries of the REIT, companies of Article 22 paragraph 3 cases d’ and e’ of Law 2778/1999, provided they are listed separately in their investment statements.