REIT
A listed real estate company that must pay out most of its profits.
In short
As of 8 October 2026A REIT (real estate investment trust) is a listed company that owns and rents out property such as offices, homes or warehouses. In exchange for tax advantages at company level, it must pay out most of its profits as dividends. REITs let you invest in real estate with small amounts, but they are sensitive to rising interest rates.
REIT stands for real estate investment trust. A REIT owns and rents out property such as offices, homes, warehouses or data centres, and is listed on the stock exchange. In return for tax advantages at company level, it must pay out most of its profits as a dividend. In Germany the REIT Act sets the rules.
REITs let you invest in property with small amounts, which can help diversification. They are sensitive to interest rates, though: when rates rise, REIT prices often fall.
Example: a US REIT pays a 5 % dividend. First 15 % US withholding tax is deducted; then German capital gains tax applies, with up to 15 % of the withholding tax credited.
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Sources
As of 8 October 2026 · Educational content, not investment or tax advice.