Regulated investment vehicles in Portugal

Real estate investment in Portugal includes alternatives to the traditional indirect investment carried out through private limited liability companies (Lda companies) or joint stock companies (SA companies), which may be relevant depending on the investors and type of investment to be made.

Real Estate Investment Funds, Real Estate Investment Companies and even the most recent Portuguese Real Estate Investment Trusts are alternatives to consider.

How can we help?

We advise our clients on tax issues that may arise when deciding which investment vehicle is appropriate the existing business structure or the structure to be incorporated, aiming to manage the level of the tax risk.

The incorporation or transformation of an existing real estate investment vehicle may be tax expensive. If it is timely discussed and analyzed by PwC tax team, we can help you analyze the existing tax risks and assess the issues involved.

Real Estate Investment Fund (REIF)

Real Estate Investment Funds benefit from an advantageous tax regime, both at the level of the fund and unit holders, which makes this investment vehicle an attractive method of investment in the Portuguese real estate market.

However, there are other elements and obligations that must be taken into account, such as the regulation of the Real Estate Investment Funds and the requirement of establishment and management by a management company.

Real Estate Investment Company (SIIMO)

Real Estate Investment Companies benefit from the same tax regime as the Real Estate Investment Funds.

However, in contrast with the Real Estate Investment Funds, there is the possibility of being self-managed, allowing the investors to fully participate in their activity.

Real Estate Investment Trusts (SIGI)

The introduction of REITs in Portugal provides a specialist investment vehicle for the real estate market, particularly for the letting market. The fact that this regime allows for existing joint-stock companies and certain types of real estate investment companies to convert into SIGIs under certain conditions, significantly broadens the opportunities for their use.

Although SIGIs are subject to the tax regime applicable to real estate investment companies, including contractual and corporate funds, there are points of differentiation when choosing between these investment vehicles which must be taken into consideration.

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Jorge Figueiredo

Jorge Figueiredo

Financial Services Tax Partner, PwC Portugal

Tel: +351 213 599 618

Rodrigo Rabeca Domingues

Rodrigo Rabeca Domingues

Financial Services Tax Partner, PwC Portugal

Tel: +351 213 599 686