[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
176
KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER PORTUGUESE LAW I. INTRODUCTION
Portugal is an Iberian Peninsula country, bordered by the Atlantic to the west and south and Spain to the north and east. In addition to its continental landmass, it also comprises the archipelagos of the Azores and Madeira. Portugal has around 10.4 million inhabitants. Portuguese territory is split up into three administrative divisions: the first division includes 18 administrative country districts, while the others include the autonomous regions of the Azores and Madeira. All country districts are sub-divided into 308 municipal districts and approximately 3,100 parishes. Lisbon is the capital of Portugal and its largest city with approximately 547,000 inhabitants. Portugal’s second and third largest cities are Sintra and Vila Nova de Gaia, with approximately 385,000 and 303,000 inhabitants, respectively. Portugal is a democracy. Its sovereign bodies are the President of the Republic, Assembly of the Republic, Government and the Courts. The current President of the Republic (and head of state), re-elected in 2021 for a five-year term, is Marcelo Rebelo de Sousa. Elections for the 230 deputies of the Assembly of the Republic are held every four years and are followed by the appointment of the Prime Minister (the head of government, currently António Costa), who then forms the government (currently a PS government with an absolute majority, elected in January of 2022). Portugal has been a member of the European Union since January 1 st , 1986, and a founding member of NATO on April 4 th , 1949. It has been a member of the United Nations since the 14 th of December 1955.
II. REASONS TO INVEST IN PORTUGAL Portugal has a pleasant weather, an extensive Atlantic coast, a wide system of motorways, excellent infrastructures for living and for leisure time, competitive operating costs, proactive pensions, an advantageous tax system for investors and flexibility in human resource management systems. These singularities have made Portugal a privileged place to invest, to do business and to live.
III. OVERVIEW OF THE NATIONAL REAL ESTATE MARKET The real estate market in Portugal is highly developed. It has a relatively high quality of supply in all sectors, on par with the main European markets, dynamic demand and a considerable presence of foreign occupiers. The market is highly transparent, with various international consultants regulated by the most demanding professional organizations of the commercial real estate sector. There is also a strong international contingent of developers and investors looking for new opportunities in the Portuguese market. III.1. REAL ESTATE INVESTMENT MARKET In 1985, the road for real estate investment funds in Portugal was opened. Since their launch and up until the 1990s, these funds had typically been used as SPVs rather than as an actively managed, pooled, closed-end-fund. The market in Portugal, up to 1998, was
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter