The Netherlands REITs or Fiscale Beleggingsinstelling or FBI
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In 1969, The Netherlands became the first European country to pass its own REIT law.
One European expert on Real Estate Investment Trusts, Piet Eichholtz, Professor of Real Estate and chair of finance department of Maastricht University in The Netherlands, has studied REITs a lot.
According to him, Real Estate Investment Trusts that specialize by property type do better than those that specialize by geography. This is easier for REITs in the United States to do, because this country has many separate regions.
However, European REITs are largely based on their own countries, so Eichholtz advocates laws allowing pan-European Real Estate Investment Trusts.
Rodamco Europe Netherlands-REIT is one of the largest in Europe.
Netherlands Real Estate Investment Trusts are Called Fiscale Beleggingsinstelling or FBI
The Dutch Corporate Income Tax Act of 1969 introduced the Fiscale Beleggingsinstelling (FBI) for closed end Fiscal Investment Institution. They must pay out 100% of their taxable profits, to avoid taxation. They are not allowed to engage in land and property development. Foreign ownership is limited to under 25% by a single non-Dutch national.
A domestic FBI must be a limited company (BV), a public company (NV), or a joint account (FJA). A foreign FBI must be a comparable entity incorporated or formed under the laws of an EU member country. They can be either listed or unlisted.
The Dutch REIT FBI has Restrictions
Some FBIs or Netherlands Real Estate Investment Trusts are unregulated, but all those publicly listed are regulated.
No owner of more than 45% of an FBI's shares can be an entity other than another Fiscale Beleggingsinstelling. No individual person can own more than 25% of a Fiscal Investment Institution.
15% taxes are withheld from dividend distributions to stockholders, including foreign shareholders.
A company can begin as a Dutch REIT effective only as the first day of a year.
- Corio N.V. -- largest REIT in Europe
- Eurocommercial Properties -- shopping centers in four countries
- Nieuwe Steen Investments -- shops and office buildings
- Vastned Offices and Industrial -- offices and industrial properties
- Wereldhave -- shopping centers and offices in seven countries
- Vastned Retail -- many retail properties
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