by Dieter W. Heinichen 
Un Real Estate Trust It is a financial instrument used to pool resources from multiple investors for the purpose of investing in real estate. He escrow It is managed by a trust company, which is responsible for investing investors' money in selected real estate projects.
What is the Real Estate Trust?
Investors who participate in a real estate trust acquire a proportional part of the trust's assets. They also receive periodic income in the form of distribution of the income generated by the real estate projects in which they have invested. In addition, it is also possible to obtain benefits in the eventual sale of the real estate in which it has been invested.
Real estate trusts are an interesting option for investors who want to invest in real estate, but do not have enough capital to purchase properties on their own. They also allow you to diversify risk by investing in several real estate projects instead of just one.
It is very important to keep in mind that real estate trusts are regulated by the laws of each country. Therefore, it is common for them to have different characteristics and benefits depending on the jurisdiction in which they are located.
Characteristics of the Real Estate Trust in Spain
In Spain, the real estate trust is also known as «real estate investment fund» and is governed by Law 35/2003 on Collective Investment Institutions and its implementing Regulations.
In this article we are going to cite some of the most important characteristics of the real estate investment funds in Spain. For example, we highlight the following:
- Investment in real estate assets: Real estate investment funds in Spain must invest at least 80% of their assets in real estate assets. Such as buildings, land, commercial premises, among others.
- Administration by management companies: They are managed by management companies authorized by the National Securities Market Commission (CNMV).
- Investor Participation: In addition, investors can participate in the fund by purchasing shares. Each share represents an aliquot part of the fund's assets.
- Risk diversification: Investing in real estate investment funds allows diversifying risk by investing in different types of real estate assets and in different geographical locations.
- management : Real estate investment funds in Spain offer greater liquidity than direct investment in real estate. Since investors can redeem their shares at any time.
- Taxes: The returns obtained by real estate investment funds in Spain are taxed as capital gains through the personal income tax.
Once again, note that the regulation of real estate investment funds may vary depending on the jurisdiction in which they are located. Therefore, consultation with a financial adviser or a inheritance lawyer to know the specific details of each case.
What benefits does it generate?
- Risk diversification: By investing in a Real Estate Trust, investors can diversify their investment in various real estate projects. Fact that thus reduces the risk associated with investing in a single asset.
- Accessibility: The Real Estate Trust allows investors to participate in real estate projects with less capital than would be required to acquire a real estate property directly.
- professional management: Real estate investment funds are managed by professional management companies. Which means that investors can benefit from the experience and knowledge of experts in the real estate market.
- Rental income: They can also offer attractive returns, since the real estate projects in which they are invested can generate income from rentals, capital gains on the sale of properties, among others.
- management : They are financial instruments that allow investors to redeem their shares at any time. This fact means that they can convert their investments into cash with relative ease.
- Transparency: Finally, real estate investment funds are regulated and supervised by the financial authorities. In other words, investors can access relevant and updated information on the performance and management of the fund.
Finally, we must emphasize that it is very important to take into account that the performance of a real estate trust may vary depending on factors such as the performance of the real estate market, management costs and the investment strategy.
