PORTUGUESE GOVERNMENT APPROVES THE CREATION OF REITS

PORTUGUESE GOVERNMENT APPROVES THE CREATION OF REITS

 

In an official announcement, the Council of Ministers clarifies that the diploma will be sent directly to the President without passing through the Parliament. It can be read that «the Real Estate Investment Trusts’ legal regime is created, where the former are constituted as a vehicle for the promotion of investment and stimulation of the real estate market, in particular the rental segment».

«It will be followed, in this way, a trend which is already consolidated in other important European markets, benefiting from the experience of other member states, which have for some years been regulating this type of societies, usually called Real Estate Investment Trusts», it can also be read.

Much demanded by the real estate sector, REITs have their capital accepted for trade in the Stock Market, receiving long term rental savings. REITs can only hold real estate assets for long term and they must be under a rental regime.

Greater investment transparency, the possibility of achieving large scale in the rental market or the possibility of having small savers participate are some of the main advantages pointed out by the sector for these vehicles.

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