GV holders/applicants using Investment Funds - raising a possible issue in the current draft law

To whom it may concern,

I have been following the drafting of the “lei de Mais Habitação” and have been happy to see it take shape with protections for existing ARI/Golden Visa Investors. In the most recent draft (link) though, it appears there is an oversight in protections granted to existing investors - some investment types are explicitly protected (Capital Transfer investment, and real estate investments) but others are left out. Specifically, Investment Fund investors are not protected in the same way.

A legal limbo with unclear and arbitrary distinctions between which investment types are explicitly protected and which are not is clearly a bad situation, with risks to the Portuguese Government of many investors unable to renew their visas and forced to sue in order to protect their constitutional rights. I hope to see this fixed in a future draft of Mais Habitação

Thank you for your time

The above is what I’ve got, apologies I got wrapped up in things yesterday. I think we need some specific section/article numbers to sprinkle in, but otherwise that might be a good template to use. We’ll want a translated version too, but my portuguese isn’t good enough to do that. ChatGPT translator maybe?

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Sounds good - some comments

  • where you say “the most recent draft”, it’s really the most recent draft issued by the Socialist Party (PS): we’re into the process where drafts issued by the various parties are reconciled. Obviously PS is the governing party, so their draft is likely to be the one (in large part) that’s ultimately adopted

  • the latest drafts can be accessed via https://www.parlamento.pt/ActividadeParlamentar/Paginas/DetalheIniciativa.aspx?BID=152805 - the PS draft is “C19” at the bottom of the page

  • the relevant sections are amendments to Article 3(1)(d) of existing Law 23/2007, and new Articles 43 to 45 proposed to form part of the new Law

I’ve written to my lawyer to raise the issue.

To whom it may concern,

I have been following the drafting of the “Lei Mais Habitação” and have been happy to see it take shape with protections for existing ARI/Golden Visa Investors. In the most recent PS draft (link) though, it appears there is an oversight in protections granted to existing investors - some investment types are explicitly protected (Capital Transfer investment, and real estate investments but others are left out. Specifically, Investment Fund investors are not protected in the same way. The relevant sections of the proposal are the amendments to Article 3(1)(d) of existing Law 23/2007, and new Articles 43 to 45 proposed to form part of the new Law

A legal limbo with unclear and arbitrary distinctions between which investment types are explicitly protected and which are not is clearly a bad situation, with risks to the Portuguese Government of many investors unable to renew their visas and forced to sue in order to protect their constitutional rights. I hope to see this fixed in a future draft of Mais Habitação

Thank you for your time

Updated, do we need to be specific about which section is missing the protection for existing fund investors? I assume this would be enough, to point them in the right direction.

Assuming this is good, can someone figure out where to email it? I know we’ve had some success with that before but I can’t remember which thread

This page has the contact email address for the Committee (I’ve addressed letters to Sr. Oliveira, Presidente da Comissão)

https://www.parlamento.pt/sites/COM/XVLeg/6CEOPPH/GTCE/paginas/contactos.aspx

I think @tommigun has sent letters on ARI-related issues to each committee member individually, which seems heroic. Composition of the Committee:

https://www.parlamento.pt/sites/COM/XVLeg/6CEOPPH/Paginas/Composicao.aspx

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I’ve emailed the Committee (in english, as I didn’t trust translators) and maybe it will help.

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Sent it as well. At this point I don’t know what to do. Wait and watch, see in court or check out of the whole process.

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I have encouraged my law firm to give the government continuous feedback, but they were already doing that.

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Does this mean that people who have invested in investment funds are not eligible for renewal? Is this the final draft?

Thanks

Is this meant for GV holders/applicants using Investment Funds - raising a possible issue in the current draft law - #13 by garrett ?

If so, it’s not entirely clear. The start of voting on the housing bill has been put back a week to 6th July, so perhaps that gives time for the text to be tweaked. Then there are still more steps: a plenary vote, presidential review, perhaps the constitutional court, perhaps a return to parliament. I think there are therefore moments when the draft can be changed. Even if the bill is passed as per current drafts, I suppose it’s then possible for further amendments to be made with subsequent laws or regulations.

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Thanks all. Sounds like the committee should have three or four letters from us, and I’ve flagged this with my lawyer and some others. At least one Portuguese lawyer has confirmed our interpretation of the issue. I’ll keep an eye on the drafts.

I sent an email as well. Thanks @cj807 and @garrett for the contact info and the template.

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I just sent to one person (that’s all see in the links). Can you guys provide me other email addresses as well.

If you want to directly email an individual member of the Committee, go to https://www.parlamento.pt/sites/COM/XVLeg/6CEOPPH/Paginas/Composicao.aspx

Then if you click on the committee member, it brings up their bio page, and at the top right there’s a link to “Enviar e-mail”

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Thanks. One question. After translating the Article 43-45 with chatgpt, I see below. But I don’t see anywhere where it explicitly mentions VC funds and leaves out investment funds. Could you pls point me to it. TIA

I’m using link https://www.parlamento.pt/ActividadeParlamentar/Paginas/DetalheIniciativa.aspx?BID=152805

Article 43
Repealing provision regarding residence permits for investment
Paragraph d) of number 1 and numbers 2 to 4 of Article 3, Article 90-A, and paragraph r) of number 1 of Article 122 of Law number 23/2007, of July 4th, in its current wording, are repealed.

Article 44
Residence permits for investment activity
1 - New applications for residence permits for investment activity, provided for in Article 90-A of Law number 23/2007, of July 4th, are not accepted from the date of entry into force of this law.
2 - The provisions of the previous number do not affect the possibility of renewing residence permits for investment activity when these permits have been granted under the applicable legal regime until the date of entry into force of this law.
3 - The provisions of the previous number also apply to the granting or renewal of residence permits for family reunification provided for in Article 98 of Law number 23/2007, of July 4th.

4 - The provisions of number 2 also apply to holders of residence permits for investment activity and their family members who meet the requirements provided for in Article 80 of Law number 23/2007, of July 4th, in its current wording, and intend to apply for the granting of a residence permit for permanent investment activity, with the exception of what is provided for in paragraph b) of number 2 and numbers 3 and 4 of Article 85 of the same law.
5 - In the cases provided for in the previous numbers, the renewal determines the conversion of the residence permit into a residence permit for immigrant entrepreneurs, under the terms of number 4 of Article 89 of Law number 23/2007, of July 4th, in its current wording, and its holders must comply with a minimum stay period of seven consecutive or non-consecutive days in the first year, and fourteen consecutive or non-consecutive days in subsequent two-year periods.

Article 45
Pending applications for residence permits for investment activity
1 - The applications for granting and renewal of residence permits for investment activity requested under the provisions of numbers 1 and 2 of Article 90-A of Law number 23/2007, of July 4th, which are awaiting a decision by the competent authorities on the date of entry into force of this law, remain valid.
2 - The provisions of the previous number also apply to applications that are pending prior control procedures at the Municipalities on the date of entry into force of this law.
3 - The provisions of number 5 of Article 44 apply, with the necessary adaptations, to the aforementioned applications.
4 - For the purposes of the provisions of the previous number, the competent authorities must verify the adequacy of the investment to its respective entrepreneurial project.

5 - The following entities are competent to verify the adequacy of the investment to its respective entrepreneurial project, depending on the matter:
a) The Portuguese Trade and Investment Agency (AICEP);
b) The Development Bank;
c) The Agency for Competitiveness and Innovation;
d) The National Innovation Agency (ANI);
e) The Office for Cultural Strategy, Planning, and Evaluation (GEPAC);
f) Others deemed appropriate in accordance with the matter.

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Sure. Take a look at the current PS draft, which is called “C19” towards the bottom of this page:

Parliament site: https://www.parlamento.pt/ActividadeParlamentar/Paginas/DetalheIniciativa.aspx?BID=152805

First go to p22, where you’ll see proposed amendments to Article 3 of Law 23/2007. This is where each investment type is defined, and we are looking at paragraph (vii)

image

In this paragraph PS has deleted “investment funds”, while preserving “venture capital funds”. That’s important, because these are distinct types, as indicated in lists maintained by CMVM, the securities regulator.

Investment Funds: CMVM - Sistema de difusão de informação - Fundos / Gestão de ativos
VC Funds: CMVM - Sistema de difusão de informação - Fundos / Gestão de ativos

You’ll see that PS also revokes capital transfers and real estate by repealing paragraphs (i), (iii) and (iv).

Then we turn to Article 44 and Article 45 on pages 19 and 20. You’ll see that the investment types from paragraphs (i), (iii) and (iv) are brought back into Article 44 and 45, providing protection against retroactivity for existing applicants. Articles 44 and 45 should also bring back the “investment funds” which were deleted from paragraph (vii), but they don’t. There’s our problem.

“Venture capital funds” don’t need Article 44+45 protection, as they still exist as valid ARI investments. But investment funds don’t, so they drop into a limbo which isn’t currently rescued by Articles 44 and 45.

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Thanks! I sent an email to my lawyer with the link and he responded by saying that he spoke to IMGA after that and they are making some “moves” to prevent the law passing by excluding investment funds. I’m working on sending the letters to members

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Sounds great! Thanks

Sent email to all 48 of them. Lets see.

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Does anyone know what happened with the vote today. Are investment funds still in limbo for people who are pre-approved but not granted permit?