Closed foreign real estate funds dedicated to the regulation of open real estate funds for decades tried to place open-ended real estate funds as a liquid form of investment. This illusion burst but with the financial crisis and the massive exit of investors. Well one and a half years after the closure of several funds and the freezing of assets amounting to 84 billion euros, still numerous funds take back any shares. As the industry self regulation made no progress, the Ministry of Finance announced far-reaching reform plans now. Therefore a minimum two-year period, as well as notice periods in the range between 6 and 24 months to the realistic figure of this illiquid investment vehicle should apply in future all open real estate fund investors.

Relatively quiet, closed-end real estate funds durchschifften the turbulent financial crisis because of its long-term nature and its strategic orientation. In particular closed foreign real estate funds occupy leading positions among all the closed fund types for years. In 2009 they came on a placed equity amounting to 1.3 billion. Invested is in Office properties, retail properties, nursing homes, hotels, residential real estate and logistics real estate. Investors benefit from abroad through tax treaties often of lower tax rates and domiciled. Please note however, is that the income in Germany are subject to the reservation of the progression and must therefore be added to all other local income for determining the tax rate.

With the annual tax act 2009, however lawmakers adopted an important exception. Reservation of progression is eliminated when income from other EU countries, making closed foreign real estate funds in this region much more attractive. These tax advantages, you can earn an attractive to tax return with closed-end foreign real estate funds. In direct comparison to real estate funds, which serve the domestic market, it is often more lucrative. Another advantage is the international diversification of its own portfolio.