Reental completes the third real estate cycle

Andrés Glennen

February 19, 2024

DeFi Reental

From Reental, we are pleased to announce that we have sold the Sevilla-1 property, and with this transaction, the real estate cycle of the first 100% crypto tokenized property in all of Spain was completed.

Two years ago, SEVILLA1 inaugurated the panel of tokenized properties that were for sale on our website!! There have already been 24 months of month-to-month profitability and, within the proposed deadline, SEVILLA1 has been sold, thus closing the real estate cycle of the first property tokenized in Spain by Reental.

Surely you have a lot of questions about this, here we are going to leave some of the most typical
What does it mean to complete a real estate cycle at Reental?

It's very simple, as indicated by the phrase it ends the path towards an objective set as “final”, in the case of Reental, it is the investment model compared to real estate tokenization. Here's a short summary of it:

Search for a property with the ideal characteristics to obtain a good return.
Availability of the property on our website so that any investor can invest in the property.
Once the property is tokenized, it is renovated.
Once finished, we proceed to search for tenants.
Completed real estate cycle, occurs when Reental sells the property of a property to a third party meeting at least the conditions initially proposed in the whitepaper.

With the sale of the tokenized property Sevilla-1, it will appear on the web under the category “Sold and closed”. This implies that investors in this property will receive the initial investment made, plus their proportional share of the capital gain.

When this happens, what happens to the investment?

When a property is sold, a “smart contract” called a terminator is executed, which returns to investors the initial capital contributed plus the capital gain generated

Therefore, the tokens of that property and any return associated with its exploitation disappear. In this Help link the process is explained in more detail.

What commissions do we have at this stage? Are there taxes for this sale?

In any real estate purchase transaction, there are a series of taxes or commissions that must be paid, but the token holder must not worry about them, since the amount he receives in his wallet corresponding to the capital gain has already deducted all those taxes.

The only tax that the investor will have to face is that corresponding to the taxation of profits based on Equity Variation. If you want more information in this regard, you can review our Reental Meet of 16/09/2022 in which our tax advisor clarified these tax issues

Here is the distinction between Resident and Non-Residents, as the first item to consider, and then to know the tax range in which we are based on our personal situation.

But listen! What happens if I reinvest the dividends and capital gains generated in Reental so that I can benefit from powerful compound interest.

At Reental you will have the possibility of Claiming /reinvesting the profits received and no withholding will be applied, so you can reinvest the entire amount in new properties. Don't you think it's fabulous?

This way you can proceed to reinvest all the capital and in exchange you will obtain new tokens until the properties represented by those tokens are sold. So you will only declare for capital gain without Reental making any withholding throughout the process for capital income and thus optimize your investment.

Below is a very useful and practical table for understanding this complex topic. In addition, we recommend the full reading of the following Help link ours, where we go even deeper and give details about this important topic such as taxation