Somewhat late to the market, Portugal’s government has announced that it is to present a proposal for a law that will allow Real Estate Investment Trusts (REITs) to operate in the country.
These widely used property investment companies sell tradable shares and buy property for the long-term, a high percentage of the income then is distributed to shareholders. In the UK, 90% of a REITs’ net income is distributed and the company is exempt from corporation tax.
Portugal has launched a determined bid, taking full advantage of the UK’s exit from the European Union, to lure asset management companies from London.
One bold claim is that Portugal’s regulators will simplify the process for asset management companies to register here.
Changes to the Alojamento Local laws, designed to enable Councils to control short-term tourist accommodation, will have come too late for many of Lisbon’s neighbourhoods with popular areas now having more tourist accommodation than local homes.
Lisbon Council is due to limit the number of AL properties by issuing quotas and refusing any more AL applications.
Political parties are still involved in negotiations but Finance Minister, Mario Centeno, is determined that his last budget will be an historic one, the lowest deficit for Portugal since the 1974 Revolution.
"The value of the deficit in the State Budget will be 0.2% of GDP - which is technically a zero deficit - but over the course of 2019 it is very likely to reach zero or to end the year with a slight budgetary surplus," said Marques Mendes in his weekly commentary on SIC.
Environmental group, ZERO and Transparency & Integrity, the Portuguese representative for Transparency International, have condemned the proposed sale of Herdade da Comporta, saying that the current spatial planning regulations are not at all compatible with speculative real estate projects that do not comply with European legislation.
The two organisations say that the possibility should be considered of using the area for projects that favour a more sustainable use for the land, a use that is in tune with the preservation of the nature, scenic and cultural legacy of the Comporta area.
The folly of moving thousands of teachers around the country at the start of every school year, again has helped cause the postponement of the start of many classes - with some schools failing to open at all.
Hundreds of teachers and other school employees were not in place today as term started. Heads already have complained about being short-staffed and many schools have been unable to open until the situation is resolved.
Lagoa’s mayor, Francisco Martins, has called on the government to radically improve the Algarve’s transport system.
"In the Algarve we are obliged to have our own transport, we have no real alternative to owning a car."
Parish Councils in the Faro area and the Algarve University, have signed up for a scheme to give local prisoners more opportunities to work.
The Directorate General for Reintegration and Prison Services signed a deal with the University and the Union of Parishes to allow selected inmates to get some work experience, for example in street cleaning, garden and park maintenance, mechanics and building techniques depending on their aptitudes.
