[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
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Additionally, it is important to point out that the rules behind the incorporation of FII’s (contractual form) are equally applied to the incorporation of these collective investment companies, as well as the applicable Portuguese corporate legislation. Therefore, the creation of these entities also requires a formal process, which includes authorization and official supervision from the Securities Commission (“ Comissão do Mercado de Valores Mobiliários ” or “CMVM”). 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 main corporate purposes are to: 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; 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 (“SICAVI” or “SICAFI”) m ay be converted into a “S IGI ,” 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.
ILN Real Estate Group – Buying and Selling Real Estate Series
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