In May 2017, the Polish Government published the second,
improved draft bill introducing Real Estate Investment Trusts
("REITs") in Poland, following the first one which was
announced in October 2016.
The new draft REIT law is intended to come into force on 1
January 2018. It covers a very interesting solution in terms of
taxation of REITs' profits, namely the taxation rate on profits
distributed from the REIT to its investors would be 8.5%
irrespective of whether the investor is an individual or
institutional, Polish or foreign entity.
Under the envisaged bill, REITs would have various unique
features. They will have to be registered by the Polish Financial
Supervision Authority specifically as a REIT company and at the
same time shares in REITs will need to be listed in Poland. At
least 70% of their assets must consist of real properties or shares
in subsidiaries, as defined in the bill on REITs.
