Law on REITs to be delayed

Despite earlier plans, the legislation on real estate investment trusts (REITs) will not come into force on January 1, 2018, as works on the draft bill are still in the analysis phase. Moreover, the law will only cover residential projects, the Finance Ministry said.

Interestingly, the initial version of the proposed bill concerned only commercial projects, which the ministry is now saying might be added at a later date. “In the current economic situation, we want to limit the bill only to residential projects. But we’re not excluding the possibility of adding commercial projects later on,” Marcin Obroniecki from the ministry said.

The planned 8.5 percent basic income tax rate will remain, however, a second income bracket (12.5 percent) will be added for those exceeding PLN 100,000 from rental income.

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