The Portuguese government will present a law proposal by the end of the year for the creation of Real Estate Investment Trusts (REITS). The announcement to the market was made by the Deputy Minister, Pedro Siza Vieira at the first day of the Portugal Real Estate Summit, which took place in September 18thand 19th.
It is recalled that the Portuguese real estate sector has been lobbying for over 10 years for the introduction of real estate investment trusts which are commonplace in neighbouring Spain. The objective of the move is to bolster property product supply for the long-term rental market.
«These are trust companies that will be listed and designed to attract savings which can then be invested in properties for long-term rental»said the minister at the summit held at the Palácio Hotel in Estoril.
These trusts will only be able to hold properties which must be held in portfolio long term and must be earmarked for rental. «This doesn’t currently exist in Portugal», explained Pedro Siza Vieira. New to Portugal, these investment vehicles have been used in Spain for some time where they are referred to as SOCIMI.
In order for REITs to be applied in Portugal a tax and regulatory regime must be put in place which the Portuguese government intends to do by the end of 2018.
Original Story: Iberian Property \ Ana Tavares | 19/09/2018
Photo: Iberian Property