The Government extends one more year the decree that avoids the bankruptcy of the real estate companies.

The government of Mariano Rajoy has listened to the requests of the real estate sector and has decided to extend one more year the royal decree-law 12/2008, which allows companies not to reckon the losses based on the deterioration of real estate investments and stock.

This tax exception was approved in 2008 by the government of Rodríguez Zapatero, and has been extended up to the last 4th February.

The main real estate associations, such as the G-14 and the APCE, alerted of the consequences of not extending this norm: a wave of creditor´s meetings of companies and not only real estate ones.

Finally, last Saturday, the government published in the official state gazette the modification of the royal decree law. (…)

The novelty within this extension is the application scope of this measure, as the losses needed to determine if a company enters a creditor´s meeting will not be taken into account.(…)

Source: Expansión