[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
183
i)
Acquire property rights or other equivalent rights on real estate, to subsequently rent them, including atypical forms of contract which include the supply of services necessary for the use of the real estate property;
(“SICAVI” or “SICAFI”) m ay be converted into a “S IG I” , subject to compliance with certain requirements stipulated by law. In both cases a resolution of the general meeting is required, with the majorities provided for by law. Finally, the following relevant aspects of the regime applicable to SIGI should be noted: i) The indebtedness of SIGI may not correspond, at any time, to more than 60% of the value of the total assets of the SIGI; ii) The shares representing the entire share capital of SIGI must, within one year from the registration of the company's incorporation, be admitted to trading on a regulated market or selected for trading on a multilateral trading facility located or operating in Portugal or in another Member State of the EU or European Economic Area; iii) Within nine months of the end of each financial year, SIGI companies must distribute, in the form of dividends, at least: (i) 90% of the profits of the financial year resulting from the payment of dividends and income from shares or units distributed by certain entities; and (ii) 75% of the remaining profits of the financial year distributable under the terms of the Portuguese Companies Code.
ii) Acquire and maintain shares of others SIGI or companies with their head office in Portuguese territory or in another Member State of the European Union or the European Economic Area which is bound to administrative cooperation in the area of taxation equivalent to that established within the European Union and which meet certain requirements; iii) Acquire and maintain participation units or shares in (i) real estate investment undertakings funds or (ii) residential rental real estate investment funds and residential rental real estate investment companies. However, the property rights should constitute the major assets of these companies. The “ SIGI ” are public limited companies ( “ PLC ” ) and must have a minimum share capital of €5.000.000 (five million euros) , represented by ordinary shares. The shares are admitted to trading on a regulated market. The “ SIGI ” must bear the business name " Sociedade de Investimento e Gestão Imobiliária, S. A. " or " SIGI, S. A. ", and may be formed with or without a call for public subscription. However, the deferment of any capital contributions is not permitted. Debt limitations are also applicable. Furthermore, both public limited companies (“PLC”) and real estate investment undertakings ( “ OII ” ) in corporate form
ILN Real Estate Group – Buying and Selling Real Estate Series
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