When it comes to cross-border real estate investments, it may be advantageous to invest in the respective jurisdiction via a local investment fund instead of a traditional real estate company. Tax advantages abroad are often associated therewith. The Federal Financial Supervisory Authority has now issued a statement on whether the characteristic as an investment fund speaks against a simultaneous classification as a real estate company. Its unequivocal answer: there is no specialty of classification. Both classifications are possible at the same time. This is the most important statement of the draft letter and it is phrased briefly and to the point. The Federal Financial Supervisory Authority then deals extensively with the requirements for the classification as a real estate company.