Real estate investment trusts (SIIQs)

The Societa di investimento immobiliare quotata (SIIQ) is an Italian listed real estate investment company similar to a real estate investment trust, subject to regulations introduced in Italy by the Law no. 296 of 27 December 2006, with subsequent amendments. The SIIQ’s main activity is the rental of real estate properties. The mandatory form of joint-stock company of the SIIQ ensures clear segregation of the assets of the SIIQ from any other assets of third parties, including shareholders. In addition to traditional financial ratios and margins, the financial statement analysis of SIIQs makes use of a measure known as funds from operations. The SIIQ tax regime is unique in the system of Italian taxation and, therefore, it requires an in-depth examination. Focusing on the taxation of investors in SIIQs, it is necessary to subdivide dividends on the basis of their sources: arising from the tax exempt business profits and arising from the taxable business profits.