Real Estate Investment

AutorFranco Caiado Guerreiro & Associados
Cargo do AutorSociedade de advogados

Page 47

5. 1 Acquiring or Selling Real Estate
Legal Procedures

The first step in acquiring a real state is to obtain all the necessary legal documents. In Portugal in order to buy a real estate property, for example a flat, several legal documents are needed:

License of Use (a document issued by the Local Town Hall for purposes of approving the use of the same, for example, habitation license); 1. Property Registration Certificate (Document of the Public Land Registry that certifies the ownership); 2. Real Estate Tax Document (issued by the Tax Authorities, this document certifies that the property is registered for tax purposes); 3. Personal Tax Number (if the buyer is a non-resident, he will have to establish a tax representation in order to obtain a Portuguese tax number); The second step is to enter into a contract of real estate transfer. This contract needs to be performed before a Public Notary.

Transfer Tax is also due (see above)

After that you will have to request the inscription of the ownership in the Public Land Registry and in the Real Estate Tax Document.


5. 2 Real Estate Investment Funds
The Concept

Portuguese Real Estate Investment Funds (FII) are special vehicles to take into consideration when considering real estate acquisition, construction, sale, resale and rental. FII are considered to be investment vehicles created with the aim of advancing investors? capital in different real estate values following a principle of division of risk between investors and the FII. This structure benefits from several tax incentives, exemptions and tax reductions pursuant to Portuguese Tax Law.


FII capital should have a minimum real estate portfolio of Euros 5 million, which may be reduced or increased with authorization from the CMVM (Securities Market Commission), if allowed by the management regulation.

FII Tax Regime
Real Estate Taxation

FII Real Estate Acquisition is fully exempt from Real Estate Transfer Tax (IMT). Accruing to this, FIIs are also Real Estate Municipal Tax (IMI) exempt12.

Income Tax Schedules

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