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INVESTMENT RESIDENCE PERMIT PROGRAMME

- Urban Regeneration Investment Application -

Summary

Subsequent to the creation in 2012 of the Investment Residence Permit Programme

(usually referred to as Golden Visa) for investors willing to purchase real estate
properties with a value equal to or above EUR 500.000,00 (five hundred thousand
euros), the Portuguese Government has since created an alternative route for investors
willing to participate in the urban regeneration and investing a lower amount of just
EUR 350.000,00 (three hundred fifty thousand thousand euros), while still taking full
advantage of all the Residence Permit Programme benefits.

Investors to whom Visa is granted are entitled to:

Enter Portugal with a Residence Visa waiver;

Live and work in Portugal, on the condition that they comply with a minimum stay of
7 (seven) days in the first year, and 14 (fourteen) days in the subsequent years;
Full exemption of Visa for travelling within the Schengen Space;
Family reunification (extending to family members the same privileges);
Apply for permanent residence;
Apply for Portuguese citizenship, by naturalization, provided all other requirements
set out by the Nationality Act are fulfilled;

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Conditions:

The purchase of a real estate property is mandatory. The property must be located in
urban regeneration area, unless the original construction dates back more than 30
years (pre-1987), in which case the property is eligible for the programme wherever it
may be located. The purchase and the subsequent refurbishment works must total a
minimum of EUR 350.000,00 (three hundred fifty thousand thousand euros).

General requirements and further conditions

The applicant investor must demonstrate ownership of the property for the purpose of
submitting it to refurbishment, and may do so by:
- purchasing the real estate property in co-ownership (provided each co-owner invests
an minimum amount of EUR 350.000,00 (three hundred fifty thousand thousand euros);
- purchasing it through a single-partner company with shares belonging to applicant;

The applicant investor may also:

- encumber or mortgage the property in the excess of the minimum investment amount
of EUR 350.000,00 (three hundred fifty thousand thousand euros);
- lease the property for habitation, commercial, agricultural or touristic purposes.

The requirements are considered to be fulfilled provided the applicant demonstrated

having invested a minimum amount of EUR 350.000,00
(three hundred fifty thousand thousand euros)
either through an

Individual investment

or an

Investment through a company

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NOTE The minimum amount of EUR 350.000,00 (three hundred fifty thousand
thousand euros) can be reduced by 20% (EUR 280.000,00), in case the investment is
made in any area considered to have low density of population (so defined by the rules
set out in NUTS III). An area is currently considered to have low density of population
if under 100 habitants per square km, or generates a GDP (Gross Domestic Product) per
capita under 75% of the national average.

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1 . INITIAL APPLICATION

Relevant documents to attest initial application requirements

A. Statement issued by a Portuguese bank attesting the international transfer of the

minimum investment amount of EUR 350.000,00 (three hundred fifty thousand
thousand euros) to an account free of any burdens or charges, held by applicant
investor;

B. Property purchase deed (note that the provisional registration of promissory

purchase is not applicable);

C. Property register certification issued with all registration in force, that attests
ownership free of burdens or charges;

D. Property legal description in the Tax Administration;

E. Proof of having filed the due application for PIP (prior information procedure)
or the due application for the refurbishment works licensing;
F. when applicable, also the property location certification issued by the authority
responsible for urban regeneration development, unless the property is not
located in such area;

or, in alternative to E. and F.:

G. Copy of the contract signed with the contractor responsible for the refurbishment
works on the property, which must be an entity duly certified by INCI to pursue
construction works;

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H. The applicant must also either exhibit the receipt of payment of the full price of
refurbishment works or attest the deposit of the difference between the property
purchase price and the minimum investment required price of the
refurbishment works in a Portuguese bank account held by applicant.

I. In case the investment is pursued through a single-partner company with shares

belonging to applicant, a company register certification is also mandatory.
J. Tax Administration and Social Security statements attesting either no record
situation on the applicant investor or record showing no pending debt;

K. Written sworn statement of fact (affidavit) signed by the applicant investor

stating the commitment to comply with the requirements of the programme.

These requirements must be fulfilled by means of a personal submission of all

documents upon application for the programme, along with the submission of the signed
initial application form by applicant investor; prior booking of an appointment for said
submission is available in the Regional Directorate of SEF; an attorney from our team
will assist applicant investor in the submission procedure.

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2 . RENEWAL APPLICATION

Relevant documents to attest renewal application requirements

A. Property purchase deed;

B. Property register certification issued with all registration in force, that attests
ownership free of burdens or charges;
C. When the extension of the refurbishment works project requires it, a
refurbishment works license under the urban regeneration planning, known as
Alvar;
D. Statement issued by the authority responsible for urban regeneration
development attesting that the works are either in progress or have been
concluded (when applicable),
E. Copy of the contract signed with the contractor responsible for the refurbishment
works on the property, which must be an entity duly certified by INCI to pursue
construction works;
F. The applicant must also either exhibit the receipt of payment of the full price of
works or attest that the difference between the property purchase price and the
minimum investment required price of the rehabilitation works is deposited
in a Portuguese bank account held by applicant.

G. In case the investment is pursued through a single-partner company with shares

belonging to applicant, an updated company register certification;

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Urban Regeneration Legal System

(RJRU)
Relevant definitions set out in applicable law, to distinguish major city
intervention and specific building or unit intervention:

Urban Regeneration: the implemented intervention on the existing urban

network, maintaining the urban and real estate heritage, in its whole or in its most
substantial part, and renewing it through major regeneration works or redevelopment of
the main urban infrastructures, equipments and urban and green spaces and specifically
works of constructions, reconstruction, amplification, conservation, demolition of
buildings (article 2., j) of RJRU).

Building Refurbishment: the non implemented intervention destined to confer

adequate functional, structural and safety performance to one or more buildings, and to
the confining structures within buildings land, or to incorporate new functional skills,
determined by the implemented urban regeneration planning (article 2., i) of RJRU).

Owners of buildings or its units have the legal obligation to take on the
refurbishment, engaging the works that are necessary for the up keeping or the
restoration of safety or esthetical appearance of the building (article 6. of RJRU).

Special Urban Regeneration Legal System

(article 77.-A of RJRU)
Special Urban Regeneration Legal System is applicable to all refurbishment
works that comply with the requirements of article. 77.-A, num 2, of RJRU and
furthermore are done in buildings that originally date back more than 30 years and in
which a refurbishment intervention is justified to confer necessary adequate functional,

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structural and safety performance to the building, due to insufficient condition, ruin or
obsolescence.

Cumulative requirements:

a) To preserve the building front with all respective conformant elements, with the
possibility of new bays and modification of existing bays on ground floor;

b) To preserve the buildings architectural and structural elements, namely

cornerstone, metallic and wooden structures;

c) To preserve the number of floors above and under the ground level, as well as the
roof configuration, with the possibility to affect the roof area as living area, and open
roof bays to the exterior;

d) Not to reduce buildings structural performance, namely in regard to earthquake

risk.

Administrative Controls of Refurbishment Works

Simplified Procedure

All refurbishment works must also comply with the prior control rules set out in another
legal system, the Urban Development and Construction Legal System (RJUE).
Articles. 10. and 35., num. 4 of RJUE make it mandatory to submit a Responsability
Affidavid by the technical authors of the project, stating that the legal technical
requirements have been complied with. Subsequently to conclusion of the works, an
authorization license is issued to allow building or building unit to be used, which also
states that the works were made in accordance with the project.

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Application for Building or Building Unit Use Authorization (article 63. of

RJUE) must be submitted along with the set of record drawings and the Responsibility
Affidavit by the technical authors of the project;

Granting of the Use Authorization (article 64. RJUE) it is issued within the
10 day time limit after submission of application.

Technical Survey (article 65. of RJUE) a survey takes place within 15 days
from the City Hall decision.

Horizontal Property (article 66. of RJUE) in case of buildings in horizontal

property status (separate ownership of units), the authorization may be granted the
building as a whole or each unit.

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Urban Regeneration Legal System

within Urban Regeneration Areas
(Administrative Procedures)

Own Initiative (Municipal Council

is competent to decide by proposal
of the Municipal Executive)
It is engaged by Municipalities via

Development Plan

The Municipalities may opt to engage an Urban Regeneration Procedure

(known as ORU), and this procedure may be a One-Off or Systematic.

One-Off ORU implemented intervention on a specific urban area

(refurbishment of buildings);

Systematic ORU implemented intervention on the existing urban area, to

refurbish building and redevelop infrastructure, equipments and green spaces.

ORU procedures are coordinated and supervised by a MANAGING BODY, an

authority that is responsible for overlooking the procedures and issues the statements
necessary for applicant investors.

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by private initiative
EXECUTION OF ORUS MAY BE
by public initiative

Urban Development and Construction Legal System

(RJUE)
In the event that the applicant investor wishes to submit a refurbishment project,
he may do so by either opting for a (i) prior information procedure application, a (ii)
simplified prior notification or a (iii) full licensing application for the
refurbishment works. Applicant investor must also obtain a property location
certification issued by the authority responsible for urban regeneration development.

PRIOR INFORMATION PROCEDURE (PIP) (article 14. of RJUE)

The prior information procedure may precede the licensing of works of

construction, amplification, conservation or demolition of buildings, and it consists of a
formal request for the Municipality to issue a technical and legal viability opinion,
which is both detailed and binding.

If the opinion is favorable, the City Hall will set out the necessary subsequent
procedure to undergo the project authorization.

The time limit for the decision is of only 20 days or 30 days, according to the
cases set out in article 16., num 1, of RJUE.

The Municipality always sets out the legal necessary control procedure for
the specific refurbishment project.

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The effects of a favorable PRIOR INFORMATION PROCEDURE (PIP) are:

- Binding the authorities in subsequent licensing applications within 1 year;

- Exempting applicant from repeating notifications to all external authorities that were
already consulted within the PIP procedure;
- Allowing for an execution of licensing procedures without the risk of suspension
because of public discussion of major development plans.

SIMPLIFIED PRIOR NOTIFICATION (article 34. of RJUE)

The simplified prior notification is the procedure that is only applicable to the
works set out in article 34 of RJUE, namely reconstruction that does not involve
increased height of the buildings front, or number of floors.

The simplified prior notification allows the applicant investor, by means of a

simple statement of compliance, to begin the works immediately after payment of the
levy, and without express authorization.

The simplified prior notification is addressed to the City Hall Mayor, and
submitted online.

It is mandatory to include architectural and technical drawings, as well as all

advisory reports by external entities.

The documents attesting the submission of the prior notification and payment of
the due levy are the legal title necessary for undergoing the works.

It is necessary to state the estimate time for conclusion of the works.

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LICENSING (article 18. of RJUE)

The full licensing application for the refurbishment works the type of
administrative control procedure applicable to the works of construction, reconstruction,
amplification, conservation and demolition of buildings (as per article 4., num 2 of
RJUE)

On the procedure, the City Hall administration will first and foremost check the
architectural project. However, the technical specialty projects may be submitted
simultaneously.

Subsequent to the assessment and validation of the projects, the authorization is

made for the licensing application.

The applicant has 1 year to proceed with the payment of the necessary levy, and
request the issuing of the license (known as Alvar). This time limit may be extended,
just once, for a further year.

The works may start after collection of the license.

The licensing application is addressed to the City Hall, in person.

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For further information, please contact our Lisbon branch:

Luis Rodrigues
lrodrigues@pratica-legal.com

Eloy Rodrigues
erodrigues@pratica-legal.com

Campo Grande, 28 6 A 1700 - 093 Lisboa

Tel: (+351) 217 969 712 Fax: (+351) 217 938 973
lsr-lisboa@pratica-legal.com www.lsrassociados.com

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