The First REIT specialized in the Hospitality Sector was recently created in Spain as a result of an alliance between Hispania and Barceló, being the last one the major shareholder of the new SOCIMI. This new Socimi called Bay Hotels & Leisure will have Hotels and Shooping Centres around the Spanish Coast.
As a matter of fact, this new Spanish Reint means a new way to invest in the Real Estate sector. SOCIMI are listed companies whose corporate purpose is either the holding of shares in the capital of their Socimis or the holding of leased urban assets by means of acquisition and developmen. One of the main advantages is that there is a tax profit because they are subject to zero taxation under Corporate Income Tax and those shoreholders owning at least 5% of the SOCIMI and are taxed on the dividends received at a minum rate of 10%, will be taxed at a rate of 19% on the portion of the distributed dividends.
Furtheremore, in order for a company to qualify as a Socimi, there is a compulsory distribution of dividends as a Socimi is a listed company and at least 80% of their assets must be land for development of leasable urban properties, shares of other Real Estate Investment Trusts, SOCIMIS or leasable urban properties. In addition, Socimi are a great way to invest in Spain, given the current environmnet of low yields in the markets and the strong devaluation of properties in Spain.