SIGI<\/strong> are of particular interest to foreign investors, as they benefit from lower taxation.<\/p>\n\n\n\nPortugal is certainly not short of ideas for attracting foreign investors. While almost 20% of property transactions were carried out by foreign buyers in 2018<\/strong>The Portuguese government has just introduced a new property investment tool. <\/p>\n\n\n\nAt the end of January, it adopted a decree-law laying the foundations for a new investment company regime. Lreal estate investment and management companies<\/strong>\u00a0(SIGI), a Portuguese version of the\u00a0listed property investment companies<\/strong>\u00a0(SIIC). The aim of the SIGI is to further increase foreign subscriptions. By offering a favourable legal and tax structure that did not yet exist in Portugal. At the same time, the new scheme aims to boost the Portuguese rental market, which is still saturated due to demand far outstripping supply.<\/p>\n\n\n\nHalf the member countries of the European Union already have similar investment company schemes. SIGIs are based on the structure of the Spanish Socimi, launched in 2009, with more benefits, particularly tax benefits. In practical terms, the aim of SIGIs is to invest, directly or indirectly, in property assets. They also aim to acquire shares and property rights in other companies, bodies and property investment funds in Portugal and Europe, or to develop construction or refurbishment projects, mainly for rental purposes.<\/p>\n\n\n\n
Predictable income and boosted profitability for the property market in Portugal<\/h2>\n\n\n\n
Shareholders are assured of a certain predictability of income, since the company has an obligation. Within 9 months of the end of the financial year, the company must distribute its profits in a specific way. The company must pay its shareholders dividends. <\/p>\n\n\n\n
90% of profits from its own dividends or shares in the profits of companies in which it holds shares. In the same way, it pays out 75% of the rest of its profits. Rental income or capital gains on property. Finally, a mechanism for limiting its debt provides investors with a degree of security. SIGIs cannot have a debt ratio of more than 60%, which means they must have their own funds and remain independent of bank financing.<\/p>\n\n\n\n