Based on the observation that our clients are more and more fond of the REITs (real estate investment company), this article could also interest you!

The concept in a few words: the REIT is an organization whose vocation is to acquire and manage a real estate portfolio on behalf of its investors. Investors are qualified as partners and as such benefit from the right to receive a portion of the rental income, in proportion to their participation in the capital.

The interest is therefore the collection of rental income without suffering specific constraints related to traditional real estate investment. Indeed, all of the rental management is centralized within the REIT, it is the management team which is fully responsible for finding, acquiring and negotiating the price of assets, looking for tenants, to carry out the necessary works, collect the rent and possibly resell certain assets.

If you want to go further, we invite you to subscribe to our Youtube channel and watch our video (in french) which has been published on this subject.

The REIT is therefore an excellent way to build up additional immediate or long-term income (with a loan). Why focus on international and more particularly European REITs?

• Of course, taxation! Indeed, the heaviness of French taxation no longer need to be demonstrated, in particular that affecting property income. For example, if your maximal tax bracket is 30%, the net income from the REITs will be taxed at 47.2% (30% income tax and 17.2% social contributions). Not very encouraging, isn’t it?
The good news is that most other European countries apply an advantageous tax system and have negotiated tax treaties with France. Then, this foreign source income isn’t subject to double taxation thanks to a mechanism of tax credit or effective rate.

• The European market is full of opportunities that it would be a shame to miss out. European REITs give you access to real estate located in the most dynamic metropolises, managed by European market specialists. The possibility of geographic diversification is also much more important than for a 100% French REIT: it is possible to select a SCPI investing in several countries or even several REITs each investing in a particular area.

Wealth A7 opinion: the winning solution consists in combining European REITs and themes such as education, health, ageing of population ... The implementation of a socially responsible approach by the management team is also a guarantee of quality over the long term. If you wish to be accompanied in the choice of your investment to see more clearly and obtain personalized simulations, use our consultation request form.