On June 18th, the Ministry of Finance organized a conference on the bill regarding companies investing in real property rental which ought to act in the same manner as REITs popular all over the world. A representative of SSW – Paweł Śliwka, Junior Associate in Real Estate practice – attended the conference.
During the discussion on the reported remarks, the representatives of the Ministry of Finance confirmed that according to the schedule, the act should enter in force on January 1st, 2019. According to the adopted schedule, the bill ought to come before the Sejm (the lower chamber of the Polish Parliament) in the early autumn.
The authors of the bill did not accept some of the general reservations such as i.a. decrease of the share capital required from F.I.N.N.s (PLN 50 MM were maintained), the possibility to invest in commercial real properties such as shopping malls or warehouses (only residential properties were left) or extension of the definition of residential properties with apart- and condo-hotels.
At the same time, the representatives of the Ministry of Finance left for a further discussion such issues as increase of the threshold of deductibility for expenditure on real property modernization works (currently the bill assumes PLN 30/m2) or more details on the requirement of adequate experience for F.I.N.N. board members.
