Rita Alarcão Júdice interviewed by Diário Económico

In an interview with the newspaper Diário Económico Rita Alarcão Júdice, Senior Associate in PLMJ’s real estate practice area described the justice system in Portugal today as a labyrinth which has led many clients to stop investing in Portugal.  One of the examples she refers to is that of real estate funds. In recent decades, these funds have caused a boom in the purchase of real estate and to obtain tax benefits these investments must be maintained for a period of 20 years. In the middle of all this, the government decided to change the rules of the game. Now owners can’t rent out their properties because the market is stagnant and they are paying more taxes. They can’t lower the rents because the law doesn’t allow it and they have to repay the IVA (value added tax) to the state.