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Category: Investment

  • Mercan Properties Invests Three Million in the “Last Urban Park” in the Center of Porto

    In August 2024, the development of “the final urban park within Porto’s city center” will encompass 1.7 hectares, representing a substantial investment of three million euros, spearheaded by the Canadian conglomerate Mercan Properties.

    During the commencement ceremony for the Lapa Urban Park, the Mayor of Porto emphasized the significance of this initiative, stating, “This marks the culmination of our efforts in establishing urban parks within the city center. There are no remaining spaces comparable to this expansive 1.7-hectare haven.” This project, facilitated by a three-million-euro investment from Mercan Properties, owners of the Renaissance Porto Lapa Hotel, is anticipated to be unveiled by August 2024, with Mayor Rui Moreira relinquishing one million euros in taxes to materialize this verdant space.

    This endeavor is the outcome of a collaborative venture between the municipal authorities and the Canadian group, intertwined with the licensing procedures for the new hotel. It encompasses the group’s involvement in the redevelopment of streets like Cervantes and Alves Redol, now accessible to traffic since March, without fee exemptions but through a land transfer as part of the Urban Development Plan, as elucidated by Urban Planning Councillor Pedro Baganha.

    Jordi Vilanova, President of Mercan Properties, envisions this as the group’s commitment to sustainable progress and city life enhancement, forging a green legacy for forthcoming generations in Porto.

    Over recent years, Porto’s municipality has seen an increase in green spaces, reaching 76 hectares through enhancements and expansions, with 22 hectares devoted to novel areas, such as Oriental Park, City Park’s western precinct, São Roque Park expansion, Asprela Park construction, and the verdant roof of the Campanhã Intermodal Terminal.

  • Casa das Lérias featured in the travel column of Le Figaro Newspaper

    Casa das Lérias was recently featured in the travel column of Le Figaro Newspaper, where it was highlighted as an excellent choice for a fall getaway in Porto. The article, titled “What to Visit in Porto? Our Top 5 Getaways in the North of Portugal,” recommends extending a weekend in Porto with an exploration of the surrounding areas accessible by train, car, or bus.

    Among the recommended destinations, Amarante stands out for its timeless charm and traditional pastries. Situated halfway between bustling Porto and the scenic Douro, Amarante remains relatively undiscovered by tourists. The city, nestled on both sides of the River Tâmega, invites leisurely exploration. Visitors are encouraged to begin their journey at Confeitaria da Ponte, the city’s oldest confectionery, renowned for its delectable convent sweets like “Brisas do Tâmega” or “Toucinhos do Céu.”

    The next stop on the itinerary is a museum dedicated to the acclaimed artist Amadeo de Souza-Cardoso, a native of Amarante and a trailblazer in modern art during the early 20th century. For those seeking outdoor activities, a hike in the Serra de Marão or a cycling adventure along the converted railway line (Ecopista do Tâmega, 40 km) from Amarante to Cabeceiras de Basto are recommended, offering picturesque views of villages, vineyards, forests, and natural parks.

    When planning a stay in Amarante, Casa das Lérias emerges as an ideal accommodation choice. Situated in the heart of the city, this charming hotel offers rooms with delightful views overlooking the River Tâmega. It captures hearts with its allure and provides exceptional value starting from €58 for a double room. Casa das Lérias, located at R. Cândido dos Reis 1, 4600-758 Amarante, serves as an excellent home base for exploring the wonders of Amarante.

  • Is the Era of the Portuguese NHR Regime Coming to a Close?

    How the taxation for new residents may look in 2024

    The Non-Habitual Resident (NHR) regime is a beneficial tax regime that offers people who were not tax residents in Portugal for the past 5 years a more favorable Personal Income Tax (PIT) for a period of 10 years. The benefits of the regime include:

    • A 20% flat rate taxation on the income obtained in Portugal and coming from employment and self-employment income. . However, the benefit is only applicable to income generated by high-value-added activities of a scientific, artistic, or technical nature performed in Portugal, as listed in a Ministerial Order (examples are Directors and Executives of production, industry, services and business companies, Doctors, Dentists, Engineering, IT, communication, scientific and related subjects’ Specialists and Technicians, University Teachers, Artists, among others);
    • Foreign-sourced pension income is taxed at a 10% flat rate; and
    • Foreign-sourced income may be exempt from tax[i];
    • Other types of domestic income received by NHRs are liable to PIT according to the rules applicable to ordinary tax residents.

    To qualify for the NHR regime the following requirements must be met:

    • Not having been taxed as a Portuguese resident in the 5 years prior to the application;
    • Having a residency in Portugal either by a rental contract or by owning a real state for housing purposes;
    • Becoming a tax resident in Portugal can be achieved by:
    • Staying in Portugal for more than 183 days (continuously or not) during a 12-month period, which begins or ends in that tax year (January 01st to December 31st); or
    • Having a residential accommodation in Portugal used as habitual housing on any day of the 12-month period.

    Recently, the Prime Minister of Portugal revealed that it was this Government’s intention to end the NHR regime, which has been officially included in the 2024 State Budget Proposal presented in Parliament last week (October 10th, 2023).

    According to the 2024 State Budget Proposal, the NHR regime will be revoked as of January 1st, 2024. Nevertheless, the Proposal includes a grandfather clause so that the regime is still applicable to the following individuals:

    • The ones already registered as NHRs at the time that the State Budget Law enters into force (until their 10-year period ends);
    • The ones that meet the conditions of access to the regime until December 31, 2023, as well as the holders of a residence visa valid at that time, provided that the registration process is submitted until March 31, 2024.

    While ending the regime in place since 2009, the 2024 State Budget Proposal does include a new tax incentive that resembles the NHR, targeted to attract scientific research and innovation.

    It proposes the same 20% tax flat rate for a 10-year period for new tax residents in Portugal who earn Employment and Self-Employment Portuguese Income derived from:

    • Higher education teaching careers and scientific research;
    • Qualified positions within the scope of contractual benefits for productive investment, as defined in Chapter II of the Fiscal Investment Code; and
    • Research and development jobs for employees with minimum qualifications equivalent to a doctorate degree, whose costs are eligible for the tax incentives system for research and business development, specifically provided in the Portuguese Tax Law.

    The new taxpayers may also benefit from a tax exemption on foreign-sourced income, including derived from employment or self-employment income, investment income, rental income or capital gains income, except if obtained in tax havens (that will be taxed at a 35% tax rate). Pension income is also excluded from this tax exemption.

    This regime can only be used once by the same taxpayer, and individuals who are benefiting or have already benefited from the NHR regime or have opted for the taxation of the income under the terms of “Programa Regressar” are not eligible for this new regime.

    Finally, and according to the 2024 State Budget Proposal, it is also proposed to extend the “Programa Regressar” (Return Program), nowadays directed to taxpayers who had prior residence in Portugal, to all taxpayers that become tax residents of Portugal until 2026 [and who have not been tax residents of Portugal in the past five years] which would allow for 50% tax exemption on employment and self-employment Portuguese income up to € 250.000,00 during the first 5 years.

    We will monitor closely the Parliament discussions on the 2024 State Budget Proposal, keeping all investors informed of any developments or amendments that may occur. Should it remain unchanged, it will enter into force on January 1st, 2024, meaning that the window to move to Portugal and acquire tax residency ends by December 31, 2023.

    We remain available for any clarifications needed.

    [i] Foreign Source income, such as employment income, certain types of self-employment income, investment income, rental income, and capital gains may be exempt from PIT in Portugal provided that such income is taxed in the origin source country according to the applicable Tax Treaty with Portugal or, if there is no Tax Treaty with Portugal, if the income is effectively taxed in the origin source country (not considered a tax haven) and not considered derived in Portugal, under Portuguese domestic tax law.

  • New Portugal Golden Visa Rules To Take Effect Within Days – Latest Update

    Following the reconfirmed vote by the Parliament, and the delivery of the document to the President’s office, we can say today that the “Mais Habitação” law was already ratified by the President of the Republic. The next step is the publishment of the new law which can take up to 8 days. According to the diploma, it should enter into force one day after the publication.

    From our side, we will now work to conclude all pending cases, by entering the respective submissions.

    We will continue to monitor the situation as closely as possible, keeping investors and partners informed of any developments while remaining available for any clarifications needed.

  • Latest Update on Portugal Golden Visa on September 22, 2023

    As per initially scheduled following the Conferência de Líderes, we would like to inform you, that the Parliament has just reconfirmed the “Mais Habitação” law with the votes in favor of 119 deputies from PS (Government party) and against 87 deputies, which means all opposition – both left and right-wing. Following this approval, the law is expected to be sent to the President within the next 5 to 7 business days. Upon receiving the law, the President has an 8-day deadline to ask for it to be published. However, given that the law is quite controversial, this deadline may not be complied with.

    Our advice to all our clients is to move forward as soon as possible with their investments. The current average time to conclude the investment, with IAS, is currently under a week and will be reduced to 2/3 business days – which provides enough time to invest and be part of the Portuguese investment program under the current regime.

    We will continue to monitor the situation as closely as possible, keeping investors and partners informed of any developments while remaining available for any clarifications needed.

  • Mercan Group Renaissance Hotel Embraces the Coastal City of Porto

    Renaissance Hotels, a prominent member of Marriott Bonvoy’s extensive portfolio of 31 exceptional hotel brands, has made its debut in Portugal with the grand opening of the Renaissance Porto Lapa Hotel.

    Nestled in the enchanting Lapa neighborhood, renowned for its rich history and lively ambiance in Porto, this new hotel presents an enticing urban retreat for spontaneous explorers. It’s a haven of sleek sophistication, just moments away from iconic landmarks like the Lapa Church, Casa da Música, and the Clérigos Tower.

    “Porto is an enchanting destination, known for its flourishing wine and culinary scene, captivating attractions, and a treasure trove of history and culture around every corner. This sets the stage for an exciting debut for Renaissance Hotels,” commented Jennifer Connell, Global Brand Leader of Renaissance Hotels and Vice President of Distinctive Premium Brands at Marriott International. “With the brand’s signature theatrical design, engaging Evening programming, and expert Navigators, Renaissance Porto Lapa Hotel is poised to captivate both guests and locals with unexpected discoveries that will surprise and delight.”

    Perched atop the hills of Lapa, the hotel boasts breathtaking panoramic views of the city skyline. Drawing inspiration from this beloved city, the Renaissance Porto Lapa Hotel was brought to life as an ‘Art House in The Park’ through the collaborative efforts of the local architectural firm, Visioarq Arquitectos, and interior designers from Broadway Malyan. Anchored by the brand’s theatrical design concept, the hotel’s decor harmoniously blends pastel pinks and champagne golds, with a surprising touch of petrol blue paying homage to the iconic Douro River that winds its way through Porto and Gaia. The interiors showcase vintage Portuguese tiles, cherished adornments used in local buildings and pavements for centuries.

    Adorning the walls are original art pieces from Portuguese international artists, including a tile mosaic installation by Pedrita Studio, a painting by Isabel Mello, and a unique creation composed of corrugated iron and neon lights by Berlin-based artist Clemens Behr.

    The champagne color palette extends to the hotel’s 163 stylish guest rooms and suites, featuring neutral walnut wood furnishings, chic design elements, and floor-to-ceiling windows that bathe the space in natural light. All guest rooms are equipped with modern 55″ LCD flat-screen TVs, high-quality sound systems, work desks, and USB outlets. The four suites, most of which are located on higher floors, offer spacious living areas and private balconies, providing guests with a serene retreat and stunning views of the Atlantic Ocean.

    The hotel’s culinary offerings include one restaurant and two bars, all dedicated to delivering a gastronomic experience rooted in Portuguese cuisine with a Mediterranean twist. On the ground floor, guests can savor all-day dining at the signature Restaurant and Bar, where the brand’s Ritual, featuring local flavors, marks the transition from day to night. Four nights a week, the bar concocts a locally infused ‘punch bowl’ featuring gins from Porto, fresh seasonal fruits, and handpicked herbs. After the Ritual, the space transforms into an elevated venue where guests and locals can mingle over cocktails and enjoy live music. For panoramic views and a serene atmosphere, the Sky Bar on the fifth floor offers locally inspired cocktails paired with Portuguese-style light bites.

  • Mercan’s Casa da Companhia is (one of) The Best Hotels and Extended Stays to Visit in 2023!

    Esquire Magazine has curated a list of 21 exceptional global hotels, ranging from luxurious resorts to charming hideaways that you absolutely must consider for your next travel adventure. Among these prestigious recommendations, Casa da Companhia, Vignette Collection in Porto, Portugal, stands out as a top choice.

    Porto, with its picturesque and slightly hilly streets, vibrant bars like Aduela where you can immerse yourself in the local scene, and rich cultural experiences such as the Serralves Foundation, which houses an impressive collection of Calder and Miró artworks, is an irresistible destination. Not to mention the stunning beaches and inviting azure swimming pools that add to its allure.

    When it comes to savoring all that Porto has to offer, Casa da Companhia, Vignette Collection, a luxurious 40-room hotel under the IHG Hotels & Resorts umbrella, provides the ultimate sanctuary. Situated on the charming and pedestrian-friendly Rua das Flores, one of Porto’s most beautiful streets, this hotel has a storied history as it once served as the headquarters of a prominent port company.

    Continuing its legacy, Casa da Companhia boasts a restaurant and bar that hosts bi-weekly port tastings and offers a carefully curated menu that pays homage to the region’s culinary traditions. Aside from the well-appointed rooms, it’s highly recommended to secure one with a balcony for an enhanced experience. However, the true gem of this establishment is the perfectly-sized, heated pool that offers sweeping views of the city’s Sé Cathedral. It’s undoubtedly the ideal spot for a leisurely siesta or an evening glass of wine, perhaps both.

    Should you find your legs weary from exploring the enchanting streets of Porto, you can rejuvenate at the hotel’s well-equipped spa and indulge in the opulent indoor pool. Another advantage of Porto’s location is its proximity to the UNESCO World Heritage-listed Douro Valley, famous for its wine production, and Lisbon, just a three-hour train journey away.

    Exciting news for travelers: The hotel group has recently unveiled a new destination in Portugal’s capital, Lisbon, set within a beautifully converted convent. The possibilities for unforgettable experiences in Portugal are endless.

  • Change of Law – Portugal Golden Visa

    Following the State Council that took place yesterday, with the attendance of the President of the Republic and the Prime Ministry, we were informed that the Government has scheduled, at the Parliament, the return of the discussion for the “Mais Habitação” law. According to the information received, the discussion will take place on September 21st, followed by the confirmation vote on September 22nd, 2023.

    As previously reported, is expected that the Government Party (PS – Partido Socialista), which holds the majority of seats in the parliament, reconfirms the “Mais Habitação” law. If so, and since only the majority of the votes are necessary for this matter, the next step in this process is to send the document to the President of the Republic.

    After the voting, the bill will be sent to the President within the next 5 to 7 business days. Upon receiving the law the President has the usual 20-day deadline to decide if he will publish it or not.

    Our advice to all our clients is to move forward as soon as possible with their investments. The current timelines will allow investors to start and submit their process before the potential end of the Golden Visa program.

    In this sense, it is essential that we make our investors aware that the current average time to conclude the investment, with IAS, is around one week, which – under current timing, provides enough time to invest still and be part of the Portuguese investment program.

    We will continue to monitor the situation as closely as possible, keeping investors and partners informed of any developments while remaining available for any clarifications needed.

  • Hard Rock International and Mercan Properties Announce Plans for New Hard Rock Hotel Algarve in Portugal

    Hard Rock International announced development plans to open a new Hard Rock Hotel Algarve in Portugal. The new development will be located near the gorgeous sands in Praia do Vau, Portimão, further expanding the iconic brand’s global reach. The property, set to begin construction in early 2024 and open in Summer 2026, will have around 275 luxurious rooms and suites and an additional 150 branded serviced apartments.

    Along with direct access to the beach while on the property, guests will enjoy a wide range of amenities including the beloved Hard Rock Roxity Kids Club™, three restaurants, three bars, three exterior pools, a Rock Spa, a Gym, a Rock Shop, a Sports Area and Beach Club.

    “We’re delighted to expand Hard Rock Hotel’s unparalleled offerings to the beautiful country of Portugal in 2026,” said Todd Hricko, Senior Vice President and Head of Global Hotel Development for Hard Rock International. “This new development will further extend the enhanced entertainment experience our guests know and love to yet another part of the world, while incorporating the country’s amazing culture.”

    An ideal vacation area, the town of Portimão hosts historic ports, a lively marina and is globally known for the Algarve International Autodrome, where the Portuguese Grand Prix was held in 2020 and 2021. The town has some of the best beaches in the Algarve region with extensive sandy coastline paired with calm, warm and clear waters. Vau Beach, where the property will be located, borders coppery cliffs, turquoise waters and a large selection of restaurants offering fresh fish.

    “The Hard Rock brand is consistently elevating and expanding its luxury offerings and it’s a pleasure to be a part of this amazing evolution,” said Jordi Vilanova, President of Mercan Properties. “We’re excited to create a unique asset on the shores of Praia do Vau that reflects the Portuguese culture and attracts visitors from around the globe. We believe that this collaboration between Mercan Properties and Hard Rock International will be a great success in Algarve and a very positive contribution to the country. Algarve continues to be of great interest and attention from Mercan, illustrated by our investment in the region in the form of four projects. Portugal is undoubtedly a tourist destination of excellence at the world level.”

    The new development is expected to create over 400 jobs in the area throughout the construction and operations of the property starting in 2024. The hotel is also anticipated to increase the potential of the tourism experience in the country.

    For more information on Hard Rock Hotel Algarve, visit HardRockHotels.com.

  • Discovering Madeira: World 5th best city to invest

    Whether it’s for a vacation, or just to spend some time off, investors may wonder where would be best to buy a future property investment. Questions like: away from the city rush, discovering small towns, or traveling inland, may appear, and what if the answer is just an ocean wave out from a great achievement?

    When it comes to Golden Visa, all needs must be properly addressed, and finding a new home or a place to invest can be a challenge. Looking deep into Portugal, further off the Atlantic shore and surrounded by lush green mountains, lies the island of Funchal: a large city in the middle of the ocean, straight in the heart of the Madeira Archipelago. A recent study, conducted by Compare the Market, found that this cosmopolitan city was ranked 5th place as “the best city in the world to invest in“.

    According to the Compare the Market study by The Burrow, which analysis locations around the globe based on factors such as touristic activities, restaurant availability, average price per sq.m and affordability, local weather, or even crime index score, Funchal City earned a total of 6.41 points out of 10.

    Overall, the island scored highly on climate and safety, average cost of living, –  around €1,966 per month – and, lastly, when it comes to the price of real estate per m², an average value of €1,729.

    Funchal: a Sea of Possibilities

    On the other perspective, other factors also influence this destination as one of the best in the world to invest in. Commonly called the Hawaii of Europe”, this volcanic island offers a beautiful opportunity to witness seaside views, mountainous hiking, and trekking adventures. All these are combined with the enthusiastic city life of Funchal´s historical center, where the majority of the city’s attractions are located.

    There, travelers can experience shopping, fascinating museums, exciting restaurants, and wine-tasting experiences in traditional taverns, while enjoying the best one of the best natural climates in the globe!

    For outdoor enthusiasts, Pico do Areeiro – one of the highest peaks of Madeira, offers an astonishing panoramic view over the island, a definite must-see and do! If you’re feeling adventurous, why not climb up there to get a natural viewpoint of the island? With breathtaking views from the top and several activities to do here, Cabo Girão is the perfect place for all thrill-seekers.

    For more abundant nature escapes in Funchal, you have the Ecological Park of Funchal featuring 10 km2 of mountainous terrain and walking trails for a hiker’s glee!

    A Nature’s Paradise

    Travelers can also experience one of nature’s wonders such as natural ocean pools, scuba diving, or even whale watching in one of the incredible boat trips across the Atlantic. Adventuring through the mountains, they are suddenly impressed by stunning waterfalls and natural fountains.

    Deep on the mainland, the traditional houses of Santana, claimed by Portuguese sailors in the early 1400s, and supposedly uninhabited at the time (though there’s evidence the Vikings may have visited a few centuries earlier), are a must-visit location, not only by their beauty but also by their iconic shapes and colorful scenery. Further west, Santa Catarina Park is another lovely destination, with a 36 000 m² green space, where you can see a variety of flora & fauna species from all over the world; an excellent place to relax and enjoy the lookout points.

    Traveling north, on top of a cliff, the famous calling cards in Monte Sledges, provide visitors with an unforgettable experience that is not only memorable but certainly inimitable. These unique vehicles were created in the 19th century, when they were used as a means of public transport by the population of the parish of Monte, located at an altitude of about 500 meters, to get down to the city of Funchal more quickly.

    The Madeira Islands are also the home of Madeira fortified wine. This wine dates to the late 15th century when Madeira was a regular stop for ships and can range from dry to sweet. Visitors can experience amazing gastronomy experiences with wine tasting and delicious local dishes.