SIGI scheme approved. Portugal may already attract real estate investment companies

The passage of the Real Estate Investment Companies (SIGI) regime proved by Parliament yesterday.

The amendments approved by the MEPs preserve the essence of the original diploma, introducing minor adjustments to the SIGI's corporate purpose and the extension of tax benefits.

SIGI is a new financial instrument for investing in real estate. These are public limited companies that will be quoted on the stock exchange (in the main or secondary markets) and, like the other listed companies, will have shares admitted to trading - at least 20% of the shares corresponding to a minimum of 2% be scattered capital.

The activity of these companies is mainly real estate and, in particular, rental properties.

After a first false start, Real Estate Investment Companies (SIGI) already have legs to walk. The definitive legal framework was approved this Tuesday in Parliament, and, essentially, the regime originally approved by the Government is preserved.

The original wording was quite broad and misleading, with those who understood that it opened the door for these societies to invest not only in the lease (their main purpose) but also in real estate development, construction or real estate rehabilitation activities, for example .

In order to eliminate this ambiguity, the deputies approved an amendment to the corporate purpose, which presumes that the main function of SIGI is - the acquisition of property rights, surface rights or other rights with equivalent content on real estate, lease , covering atypical contractual forms that include services necessary for the use of the property.

It also clarifies that SIGIs, although having the same tax regime as investment funds, only benefit from the same tax exemptions (eg capital gains) - when the property has been held for lease or other atypical contractual forms which include the provision of services necessary for the use of the property for at least three years. In one and the other amendment, the objective is to focus SIGI on leasing (not necessarily housing) activities.

The PSD, allied to the government in passing decree-law 19/2019 by Parliament, at the request of the BE and the PCP, also saw two approved proposals. One to compel SIGIs to make an assessment of their assets every 7 years through an independent auditor. Another to predict that after five years of admission to listing, SIGIs must have at least 25% of the stock floated (compared to 20% thereafter).

Source: Expresso jornal