The different types of REIG

There are different types of REIGs (Real Estate Investment Group) in the tax system, specific real estate investment vehicles that are created to share certain real estate risks with their investors. The capital of these REIGs is exclusively made up of cash or in-kind contributions, the value of which is equal to twenty times the value of the shares.

The different types of REIG can be grouped into three main categories:

– yield REIGs, which generate regular rental income
– tax REIGs which generate a reduction in income tax according to the corresponding tax law
– capital gains REIGs whose objective is not to distribute regular income

In order to finance their investments, REIGs sell shares or equity units to investors. In exchange for his investment, the investor receives a security representing the share or participation unit he has subscribed to.

ALSO  What are the risks of REIGs?