It is aimed at those who have more than 30% of their assets in land or in liquid funds. According to Spanish Real Estate, the measure will attract the interest in this type of society by promoters as tax benefits as it offers transparency to possible investors.
After the clear success of the socimis in energising Spanish real estate, a new way is being opened up which will ease the way to a second wave of enterprises because of the transparency offered to the investor.
The ‘socimis in development’ began in a circular from MAB in December valid from this year onward. According to this explanation, the rapid exit of the socimis “is leading to there being societies with a significant proportion of the value of the asset”, either because resources are not allocated or because they are tied up in the construction of a property, “which it is best to show the public investor in a clear way”.
In this new scheme will be included all the companies who use their urban land for building offices, and for rental. It is hoped therefore that developers will come forward, who until now have been not been interested in this model and have preferred to work with pre existing buildings.
Development is more profitable, but also has more risk because it can fail, or be delayed. Plus one of the requisites of the new regulation is that the project must be developed within a term of three years.