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The Real Estate Investment Trust (FII, in the Portuguese acronym) have been seen as a very attractive investment opportunity and achieving a growing piece of the market for local and international investors.
Besides exemption on capital gains tax, on January 31st the Brazilian Government announced the withdraw of the 6% of IOF (financial transactions tax) that the FII were subject to.
FIIs are traded at BM&FBOVESPA counting on full transparency, price discovery and technological infrastructure as all other BVMF listed and traded products.
How to Trade FII: use your 2689 account to trade it as any other BVMF security
Tax: capital gains tax exemption and no IOF
Required dividend distribution: 95% of the net income must be distributed among shareholders, who have the possibility to increase their gains by the growth of the Real Estate segment in Brazil
FIIs as a Structured Product Fund: FIIs can be composed not only of actual physical Real Estate ventures (such as malls or universities), but also by other types of assets related to this market, such as corporate bonds and shares of other funds
FII listed at BVMF (in Portuguese)
Record in 2012
In 2012, Real Estate Funds (FIIs) turned over BRL 3.59 billion in 316,023 transactions. In the previous year financial volume was BRL 912.46 million in 77,075 transactions. At the end of 2012 there were 93 real estate funds registered and authorized for trading on BM&FBOVESPA’s exchange and OTC markets.
