Tax advantages and results recognized to real estate investment funds and partnerships

Real estate and its derivatives, which have an important place in our country's economy, have shown a remarkable development in recent years as an prominent and effective investment tool. It is seen that the orbit of real estate sector has both an economic aspect and a social aspect along with urban planning. As a result of globalization, the real estate sector has grown with new factors and new product diversity, as capital flows have turned towards developing countries. Although the real estate sector, which accelerated its development after the 2001 crisis, was under threat in the 2008 crisis, there was a recovery in 2010 and after. In Turkey, both in pandemic conditions experienced prior to both the pandemic, especially in real estate of individual investors were taking into consideration as an investment vehicle. It is seen that behind this interest is, of course, the ability to protect the assets of both individual investors and institutional investors in the face of the economic conjuncture and to gain additional income. In addition, real estate investment trusts and real estate investment funds contribute to the development of the sector by including small investors in the real estate sector. An important cost item for the parties that will invest in the real estate sector is taxes. Tax regulations and incentives are critical for the real estate sector, which is an important and leading sector in the country's economy. The study deals with the tax advantages provided to real estate investment trusts and real estate investment funds under the current tax acquis and discusses the effects of these advantages on real estate investment trusts and real estate investment funds. The subject of the study discusses the effects of these tax regulations on the establishment of real estate investment trusts and real estate investment funds. The study covers the effect of tax rates in Turkey applied to real estate investment trusts operating since 1997 and real estate investment funds operating since 2016 on the number of these institutions operating in Turkey. In the literature, mainly the performances of REITs and REIFs and the preferences of portfolio managers have been discussed, and the effects of legislative changes and dividend taxes on REIT share prices in the United States, which is the main development center of REITs, have attracted attention as research subjects. In this study, the relationship between corporate tax rates and the number of operating real estate investment trusts and real estate investment funds was investigated. In this context, tax rates were determined as the independent variable and the relationship between the two variables was investigated by applying the Spearman rho test. According to the results of the research, no relationship could be found between tax rates and the number of operating establishments. Keywords: Real Estate Investment Trusts, Real Estate Investment Funds, Real Estate Market, Taxation in Real Estate, Tax Incentives