Comparative advantages of REITS

• Public companies

REITs are registered and licensed under the requirements of the Special Investment Purpose Vehicles Act. The Financial Supervision Commission of Bulgaria controls their activities. The REITs are required to have their shares listed on the Bulgarian Stock Exchange – Sofia, which provides for transparency and liquidity.                           

• Current yield for the shareholders

At least 90% of the Fund’s net profit should be distributed as dividend.              

• Tax breaks:                            

REITs are exempt from corporate tax.                           
No capital gains tax for trading with shares of REITs.                           
Dividend tax is 5%, which is 5% lower than the corporate tax for legal entities (i.e. 10%).                           

• Liquidity

the shares of REITs are among the most liquid on the Bulgarian Stock Exchange – Sofia.                           

• Uniqueness

REITs provide the opportunity to everybody to invest small amount of money in a diversified real estate portfolio.                           

• For more information about the legal framework in which the Bulgarian REITs operate, please take a look at the Special Investment Purpose Companies Vehicles Act.