Real estate investment trusts in Europe

It is well known that investments in real estate provide relatively stable yields compared with stock market volatility, so it is not surprising that, with globalisation, investors have pursued such opportunities across borders, especially where foreign countries offer beneficial tax regimes. Nor it is surprising that states should fear erosion of their tax base in the presence of such investments. This in-depth comparative analysis of taxation of real estate investment trusts (REITs) in different European Union (EU) Member States - investigates the impact of EU law on direct taxation in the case of REITs, and whether EU policies in this area have led national legislators to adjust their REIT regimes. Presenting detailed case studies of three EU Member States - France (a well-established REIT regime), Bulgaria (a new accession state) and Spain (a recent REIT regime) - this book explores the idea of a harmonised EU REIT, and whether harmonization among national REIT regimes may be possible. Among the issues and topics arising in the course of the presentation are the following: 'goodness of fit' and adaptational soft pressure; relevant case law from the European Court of Justice, including both tax and company law; 'REIT shopping'; noncompliance of REIT regimes with EU law; and criteria for the 'misfit' analysis of REIT regimes and potential infringements of EU law. The analysis ultimately documents conditions and circumstances for the creation of a harmonised 'Euro-REIT' by assessing the level of change on the area of direct taxation within the Member States which would be needed for such a creation to become reality, identifying common themes across different legal systems that could assist the harmonization of laws.