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Local Spain
2 days ago
- Business
- Local Spain
What are Socimis and why are they at the heart of Spain's housing debate?
In recent years the Spanish government has been trying to solve the housing crisis in the country by passing various laws and reforms, including the Housing Law in 2023, which in turn created many more problems, according to some experts. In January 2025, Prime Minister Pedro Sánchez announced 12 measures aimed at increasing the number of affordable homes, achieve better regulation and give more aid to those who need it. The most eye-catching measure is the proposed 100 percent tax on property buyers who don't reside in the EU, a levy which will double the price they pay for homes n Spain. In addition to building new social housing and cracking down on seasonal rents, among many other measures, the government is also now turning its attention to Socimis (known as Sociedades Anónimas Cotizadas de Inversión Inmobiliarias) to try and further help access to housing. As announced by Sánchez, the government wants to change the tax benefits regime for Socimis, which are essentially property investment vehicles, so that they only apply to companies that manage affordable rentals. Note that this measure will only be implanted on residential Socimis, so those that invest in offices, shopping centres or any other kind of property will not be affected. What are Socimis? According to Delanto Chambers, Anglo-Spanish legal and tax experts: "A Socimi (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria) translates as Listed Corporations for Investing in the Real Estate Market and is similar to a Real Estate Investment Trust in the UK (abbreviated to REIT). Socimis are public limited investment companies, created to encourage long-term investment in the Spanish property market through investment in Spanish urban real estate for rent such as homes, hotels or commercial premises." This essentially means that Socimis are like limited companies listed on stock markets whose only trade in properties. Delanto Chambers, presumably before this latest government announcement, previously described Socimis as "attractive investment vehicles" due to the "substantial tax breaks on transaction costs and profits allowing shareholders to maximise their investment." Crucially, they added, "provided that the investment and dividend distribution requirements are met Socimis are Corporate Income Tax taxpayers, although subject to a tax rate of 0 percent." The government plan for Socimis Socimis' tax benefits could be set to change if the Socialists' draft bill receives parliamentary approval. When announcing the proposal in January, Sánchez said: 'We must finally put an end to the injustice of some investors using this instrument to pay less tax than ordinary citizens when buying the same property.' Back in November, the government green lighted the abolition of the existing Socimi tax regime, which, as noted above, essentially made them exempt if they distributed at least 80 percent of dividends to shareholders. Now, the government is instead proposing they be taxed at the general corporate tax rate of 25 percent. However, they have suggested tax breaks for Socimis that help with Spain's housing crisis: 50 percent if more than 60 percent of the asset portfolio is allocated to affordable rentals, and 100 percent if the profit is additionally reinvested in this type of housing over the following three years. Sánchez's administration will consider properties affordable if their rent does not exceed the index established by the Housing Ministry, if the property is classified as protected, if the rent does not exceed 30 percent of the tenant's income, or if the cost is below €26,400 per year. All the above measures have been suggested because the Spanish government feels Socimis have so far failed to improve the supply of affordable housing in Spain. Experts seem to think the fiscal clampdown will disproportionately affect foreigners, rather than Spaniards. According to market estimates, the measure could in theory impact more than half of total property investment in Spain. Specifically, foreign investment accounts for an average of 61 percent of the total volume in the Spanish real estate sector since 2014, according to data from the consultancy firm Savills. In 2023, 70 percent of Socimis' capital was held by international investors, unsurprising given their generous shareholder remuneration.
Yahoo
20-03-2025
- Automotive
- Yahoo
Republicans' $3.1B road funding plan clears the Michigan House
Sponsor on Michigan House Republicans' road funding package and Chair of the House Transportation and Infrastructure Committee Rep Pat Outman (R-Six Lakes) speaks in support of the legislation amid concerns from Democrats on the House floor on March 19, 2025. | Photo: Anna Liz Nichols The Michigan House gave the greenlight to Republicans' $3.1 billion road funding plan Wednesday, voting it through the chamber with the support of several Democrats. But there are potholes in House Republicans' path to getting a longterm solution to road funding into law, an endeavor highly desired and long sought after in Michigan, where infrastructure has long been underfunded as the years bring their wear. Republicans are praising the plan as a means to use existing state dollars towards a roads solution, without levying new taxes, while Democrats are widely bashing the plan as a gamble that will hang vital services out to dry without the means to fund them. The plan would remove the 6% sales tax on gas and instead increase the motor fuel tax by 20 cents which would be wholly dedicated to funding road upkeep. Democratic Governor Gretchen Whitmer proposed her own 45-cent gas tax increase in 2019, which did not gain momentum in the GOP-led legislature at the time, leading her to successfully pursue $3.5 billion in bonds for road repairs 'I'd be embarrassed if I were her': Republicans keep slamming Whitmer's old gas tax plan But Whitmer and the Legislature are eager for a long term solution, not one-time spending, to create the budget infrastructure needed to save Michigan's crumbling infrastructure, Michigan House Speaker Matt Hall (R-Richland Township) told reporters before the vote. 'We can fix our roads without raising taxes…we're going to ensure that all of the money collected at the pump goes to roads,' Hall said. 'We're going to make a difference for the people of Michigan, something they actually see and feel in terms of fixing our roads.' In order to backfill the funding to the state's School Aid Fund that schools would lose with the elimination of the sales tax at the pump, part of the plan would dedicate $755 million from Michigan's General Fund towards schools allowing $945 million from the tax restructure to go to roads. In addition $95 million would be diverted from the General Fund annually for the cities, counties and villages that received funding from the sales tax. The bulk of the proposal, about $2.2 billion, would come from taking Corporate Income Tax revenue and using it for roads. Part of the plan is aimed at eliminating the usage of old Michigan Economic Growth Authority tax credits in order to increase the Corporate Income Tax revenue and increase funding for roads. But with the shifts in general fund dollars called for in this plan, it will be the task of the partisanly split legislature to work out how the deficit, potentially hundreds of millions of dollars, will work in the state budget. Many House Democrats articulated that they are not trusting Republican leadership's promises to keep schools harmless in the process, as well as public services and resources used by Michiganders. The plan would need to clear the Democratic-led Senate and gain Whitmer's approval, likely after rigorous negotiations, to become reality. There would be no telling where budget cuts would come from in order to fund an unsustainable system for road funding, Minority leader Rep. Ranjeev Puri (D-Canton) said after a handful of Democrats voted in favor of the package of bills in the plan Wednesday. The plan is 'robbing Peter to pay Paul' Puri said, stealing money from one part of the state budget to pay for others. 'Without a fully baked plan, this is just a terrible use of our state dollars,' Puri said. 'We are putting so many critical services that are funded and dependent on our state budget at risk.' Sponsor on the bill package and Chair of the House Transportation and Infrastructure Committee Rep Pat Outman (R-Six Lakes) rebutted after the votes, 'we are not cutting any essential services. You have my commitment.' In an overview, those essential services include public safety, public health, infrastructure and education, along with other sectors, Outman said as lawmakers go through the budget 'line by line' to eradicate wasteful spending or expenditures that are not getting taxpayer value. 'I don't know how to make it any clearer how much government spending has exploded here in the state of Michigan,' Outman said. 'If roads and education are our most pressing needs, why don't we fund those things first, then fund everything else after the fact. We don't seem to be able to budget like that and the people are begging us to act and to fix this infrastructure problem without raising their taxes and that's what we're delivering here.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Associated Press
26-02-2025
- Business
- Associated Press
Malaysia Insurance Industry Governance, Risk and Compliance (GRC) Analysis Report 2024: Recent and Upcoming Changes in the Regulatory Framework, Taxation and Legal System
The 'Malaysia Insurance Industry - Governance, Risk and Compliance' report has been added to offering. The report provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together the analyst's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country. The report provides insights into the governance, risk, and compliance framework pertaining to the insurance industry in Malaysia, including: An overview of the insurance regulatory framework in Malaysia. The latest key changes, and changes expected in the country's insurance regulatory framework. Key regulations and market practices related to different types of insurance product in the country. Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the country. Key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations. Details of the tax and legal systems in the country. Key Highlights BNM, under the Ministry of Finance regulates the Malaysian insurance industry. The provisions of the FSA, which came into force on June 30, 2013, regulate the life and non-life insurance businesses in Malaysia. The Malaysian government permits FDI up to a limit of 70% in the insurance industry. Composite insurance is not permitted in Malaysia. Non-admitted insurers and intermediaries are not permitted in the Malaysian insurance industry. Reasons to Buy Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country. Gain insights into the insurance regulatory framework in Malaysia. Track the latest regulatory changes, and expected changes impacting the Malaysian insurance industry. Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country. Understand key regulations and market practices pertaining to various types of insurance product. Key Topics Covered: 1. Legislation Overview 1.1 Supervision and Control 1.2 Legislation 2. Compulsory Insurance 3. Non-Admitted Insurance Regulations 4. Company Registration and Operation 4.1 License 4.2 Foreign Direct Investment / Ownership 4.3 Minimum Capital Requirements 4.4 Solvency Margins 4.5 Reserve Requirements 4.6 Statutory Return Requirements 4.7 Fee Structure 5. Taxation 5.1 Tax on Insurance Premium 5.2 Corporate Income Tax 5.3 Corporate Capital Gains Tax 5.4 Value Added Tax 6. Legal System 7. Policy Practice For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. View source version on CONTACT: Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 Copyright Business Wire 2025. PUB: 02/26/2025 08:41 AM/DISC: 02/26/2025 08:41 AM
Yahoo
11-02-2025
- Business
- Yahoo
Whitmer's new road fix plan includes $470M pot tax, but few other details
The Brief A $470 million tax on wholesale marijuana was one of the revenue increases in Gov. Whitmer's new road plan. Whitmer did not mention a $1.6 billion corporate income tax hike which has previously been discussed. An undisclosed $500 million in state budget cuts was mentioned by Whitmer, without details. LANSING (FOX 2) - The governor is calling for a $3 billion road fix plan but hasn't said how the money could be raised to do it, with the exception of a $470 million tax on wholesale marijuana. A tax on pot is the only revenue increase that the governor identified in her news release on how to pay for the road fixes. By the numbers Here are the highlights: $1.6 billion from businesses - with no specifics on how to raise that. $500 million in undisclosed state budget cuts. $470 million pot tax. $1 billion for local roads. Governor Gretchen Whitmer said nothing about boosting the corporate income tax by $1.6 billion despite reports she wanted that. But she did talk about raising money from "massive corporations" including Amazon and other entities that haul goods statewide saying it is time for business to "pay it's fair share." What they're saying State chamber of commerce lobbyist Wendy Block warns that business tax hikes like the corporate income tax will trickle down and be paid by you. "There is no magic bags of money in the back room of these companies that pay the Corporate Income Tax. They have to figure out how to pass that tax on to their customers," Block said. "So, that would be through higher prices." The governor also proposes to remove the 6% sales tax at the pump. None of that goes to the roads, and all of it goes to schools. But she does not explain how she would replace the $600 million that schools need to operate. House Republicans have talked about boosting the gas tax by over .20 cents a gallon to replace the lost revenue. The governor made no reference to any gas tax hike in her release. Representative Sarah Lightner, a Republican from Springport, reacted to Whitmer's statement. "We can sustain a road plan without increasing taxes," she said. "There's a lot of holes in the budget in her road plan as to where that money is actually coming from. Like, where are the cuts going to come from, where is this additional money going to be." Meanwhile Lance Binoniemi, the lobbyist for 600 highway construction firms in the state, does not care where the revenue comes from because minus new dollars there may not be enough workers to actually fix the roads. "We are looking at some severe job losses if nothing is done for the next couple of years, so we're open to any and all revenue the state can come up with," he said. The Source Information for this story was taken from Governor Gretchen Whitmer's new road fix plan.
Yahoo
11-02-2025
- Business
- Yahoo
Whitmer rolls out $3B road funding plan, eyeing more cash from marijuana, companies
GRAND RAPIDS, Mich. (WOOD) — Gov. Gretchen Whitmer on Monday released her plan to devote $3 billion for Michigan's roads. The proposal called for ensuring that every dollar from the gas tax goes to roads, but also for taxing marijuana wholesale and drawing in more money from big companies to create new revenue. A release from Whitmer's office touted the Mi Road Ahead Plan as 'fiscally responsible, balanced, and sustainable,' saying that local communities 'still need a long-term solution.' What could a road usage charge look like in Michigan? A total of $1.2 billion of the $3 billion would be collected at the gas pump, the governor's office said. It said that right now, 25% of the taxes paid on gas are sent somewhere else than roads. Under the Mi Road Ahead Plan, 'every penny drivers pay at the pump goes toward Michigan infrastructure,' the release said. Whitmer's plan would also target 'Big Tech industries,' with the release arguing their heavy semi-trucks disproportionately deteriorate roads and bridges. The Mi Road Ahead Plan would 'make sure that corporations pay their fair share to do business in Michigan.' This, Whitmer projects, would raise $1.7 billion in additional revenue, though does not say specifically how. The plan would also aim to 'cut red tape' and implement 'fiscally responsible cuts,' saving $500 million for road and bridge repairs. The release does not describe exactly what those cuts would be. These five small W MI cities have received state dollars for road repair Under the Mi Road Ahead Plan, marijuana sales would be taxed wholesale, the same way cigarettes are. Currently, Michigan's taxes on marijuana are the fourth lowest in the country, according to the release. Whitmer's office says the marijuana industry also uses the roads to move product several times during production. Whitmer expected another $470 million revenue from the wholesale taxes. The Grand Rapids Area Chamber of Commerce criticized the plan, expecting it would raise business taxes. Though Whitmer's plan did not spell out specifics, the Chamber is expecting the Corporate Income Tax would be raised from 6% to 8%. If that is part of the plan, the Chamber says it would put Michigan at a 'competitive disadvantage' compared to other states. 'Michigan's CIT is already higher than half of the country and 16 states have cut their rates since 2018,' the Chamber wrote in a release Monday. 'We support finding a sustainable source of revenue to fund Michigan Roads but are concerned with the burden being placed on Michigan business and the additional inflationary pressure it will have on costs,' wrote Joshua Lunger, vice president of the government affairs for the Chamber. Michigan Rep. Ann Bollin, R-Brighton Township, said she believes Michigan already has enough existing revenue to fix the roads. She said the problem is allocation of funds. Bridges across Michigan in need of critical funding, report says 'Since 2018, state government spending has ballooned by nearly $30 billion — a more than 40% increase. And none of that was put toward additional funding for local roads. The problem isn't revenue, it's priorities. The money is there. We don't need higher taxes to fix our roads. We need leadership that respects taxpayers, spends responsibly, and makes roads a priority,' Bollin wrote in a statement Monday. Right now, Whitmer's plan is just a proposal. At least parts of it would need to go through the Republican-controlled Michigan House and Democratic-controlled Senate before they could actually go into effect. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
