Changes include restrictions on tax-free REIT spinoffs and other reforms generally favorable to REITs and non-US investors in US real estate.

On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (Act), also known as the PATH Act. The Act, which extends various tax benefits for individuals and businesses that were set to expire, contains several provisions affecting real estate investment trusts (REITs) and non-US investors in US real estate. Among other things, these provisions (1) limit tax-free REIT spinoffs; (2) make it easier for REITs to comply with certain REIT qualification requirements; and (3) limit the application of the Foreign Investment in Real Property Tax Act (FIRPTA) to non-US investors, providing non-US investors with more opportunities to invest in US real estate without being subject to US tax and withholding.