Thursday, June 8, 2006
Category:
Property
Experts have said that US real estate investment trusts (REITs) will boost the global property sector if more countries adopt them.
As investors become increasingly eager to put money into property abroad, they will be keeping a close eye on the tax implications.
Several countries, including the UK, have already applied tax codes similar to those in the US, which release trusts from the majority of income taxes as long as they dole out 90 percent of taxable income to shareholders.
But others, are not yet ready to come on-stream with REITs and REIT-friendly legislation, and experts say that the prospect of losing favourable tax treatment when a US REIT goes overseas is holding many foreign investments back.
