Regulatory Framework Covering SIGIs Approved in Portugal

July 2019 – Richard D. K. Turner

The regulatory framework covering Real Estate Investment Companies (SIGIs), the equivalent to American REITs and Spanish socimis, was approved Tuesday in Parliament.

Members made some changes to the original wording of the law, which some had considered quite vague, and which would have left the door open to a wider range of possible investments than planned. Parliament amended the regulations to state that SIGIs are to be used for “the acquisition of property rights, surface rights or other rights with equivalent content for real estate for lease…” and may include the execution of services rendered necessary for the use of the property, including cleaning, concierge or maintenance services for office leases.

While SIGIs will have the same tax benefits as investment funds, they will only benefit from such “when the property has been held for lease… for at least three years.”

Lastly, SIGIs must float at least 25% of their equity, compared to 20% before.

Original Story: Jornal Expresso – Elisabete Miranda