What is a REIT

USA Barcelona Realty, Inc. intends to qualify as a Real Estate Investment Trust (REIT) by end of 2014.

Real Estate Investment Trusts (REITs) were created in the United States when President Eisenhower signed into law the REIT Act in 1960. REITs were created by Congress in order to give all investors the opportunity to invest in large-scale, diversified portfolios of income-producing real estate. Advantages of investing in a REIT include:

  • A REIT must pay out 90% of its taxable income (as dividends), making it attractive to dividend-oriented investors.
  • REITs are taxed as partnerships, eliminating corporate tax/double taxation.
  • REITs are required to operate under stringent rules for business practices not required of other types of entities.
  • A majority of a REIT’s board of directors must be comprised of independent persons.

For more information about REIT’s visit WWW.reit.com.