Additionally, it is important to point out that the rules behind the incorporation of FII’s (contractual form) are equally applied to the SIIMO’s incorporation, as well as the applicable Portuguese corporate legislation. V.4. INVESTMENT AND PROPERTY MANAGEMENT COMPANIES (SIGI) Finally, on January 2019, a new type of investment and property management companies (SIGI) was legally established, aiming to (a) diversify companies’ funding sources, (b) increase the investment in the economy and competitiveness of the securities market, (c) attract foreign investment, and (d) dynamize the Portuguese real estate market, especially the leasing market. The SIGI corporate purposes are limited to: i) Acquire property rights or other equivalent rights on real estate, to subsequently rent them, for instance; ii) Acquire and maintain shares of others SIGI; iii) Acquire and maintain participation units or shares in real estate investment funds. However, the property rights should constitute the major assets of these companies. The SIGI are limited liability companies by shares (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, but the deferment of any capital contributions is not permitted.

Debt limitations are applicable.

VI. TAX REGIME VI.1. PROPERTY ACQUISITION VI.1.1. REAL ESTATE TRANSFER TAX (“IMPOSTO MUNICIPAL SOBRE AS TRANSMISSÕES ONEROSAS DE IMÓVEIS”) AND STAMP TAX (“IMPOSTO D O SELO”) The acquisition of real estate is subject to two types of taxes, which must be paid by the purchaser to the tax authorities before the signing of the real estate acquisition agreement. IMT – Real Estate Transfer Tax, which is calculated over the price of the real estate or its tax patrimonial value, if higher (which is uncommon). IMT tax rates for housing buildings are progressive between 0% to 8% and fixed for plots for construction or other urban buildings (6.5%) and rural property (5%), or when the purchaser, not as an individual, has office at tax haven (10%). Nevertheless, Portuguese law foresees some exceptions or postponements on IMT payments, some of them applicable when the acquisition is made by using some of the special purpose acquisition vehicles identified above. IS – stamp tax, calculated over the price, or the tax patrimonial value, if higher. IS tax rate is fixed, in most frequent situations, in 0.8%, although this rate can increase to 1% on acquisitions of real estate valued at lease

ILN Real Estate Group – Buying and Selling Real Estate Series

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