Hi everyone,
I’d like to discuss a challenging situation surrounding the Lagos by Marriotproject, which is being developed by MERCAN PROPERTY LAGOS LDA in Portugal. The project was initially scheduled to be completed in the second quarter of 2023, but as of March 2025, construction remains unfinished.
Recently, there have been reports that the construction license for the project may have been revoked by the municipal authorities in Lagos. MERCAN claims that the license remains valid due to ongoing negotiations with the municipality, but there’s no official confirmation yet.
And this is where the real risks for investors and golden visa holders begin:
- Inability to complete the project without a license
If the license is indeed revoked, the project will become legally invalid, making it practically impossible to complete construction without obtaining a new license.
• If the municipality refuses to reissue the license — the project could remain frozen indefinitely.
• Even if a new license is issued, it could come with different terms or additional costs.
- Risks to golden visa status
If the project is never completed, this could jeopardize the ability to:
• Maintain golden visa status.
• Successfully renew the residence permit in the future.
• Secure permanent residency or citizenship under the ARI program.
From what I understand, the fact that the investment was made under the ARI program is only recognized if the project itself remains legally valid. If the property becomes legally compromised due to the revoked license — SEF could potentially initiate a review or even cancellation of the golden visa.
- What happens if the funds are already spent?
If the license is revoked and MERCAN lacks the funds to complete the project — what would be the realistic strategy for investors to recover their money?
• In theory, there’s a right to request a buyback (€280,000), but if MERCAN lacks the liquidity — how would that be enforced?
• If MERCAN declares bankruptcy, the project will be included in the insolvency estate — but will there be enough value in the assets to compensate investors?
• If a new developer takes over — would investors be offered the same terms, or would it be a completely new deal under different (and possibly less favorable) conditions?
- Is it possible to transfer the investment to another project?
The question of transferring the investment to another project under the ARI program remains unclear.
• SEF generally allows transfers only if the loss of the original project is not the investor’s fault.
• If MERCAN officially confirms that the project can no longer be completed due to licensing issues — would SEF allow the funds to be transferred to another project, even if the money has already been spent on construction?
• If SEF denies the transfer request — would there be grounds to challenge that decision in court?
This creates a complex and risky scenario:
• If the license is revoked — construction becomes impossible.
• If MERCAN lacks the funds to honor the buyback — investors could face significant losses.
• If the property is legally compromised — SEF could deny future renewals or revoke existing golden visas.
Has anyone faced a similar situation in Portugal?
Are there any successful cases of transferring investment to another project after a project was canceled or a developer went bankrupt?
How does SEF usually respond to these cases? Does the developer’s fault play any role in SEF’s evaluation of the visa status?
If the investment was legally made but the project was annulled — could SEF be forced to recognize the investment through legal action?
Any thoughts, insights, or personal experiences would be highly appreciated!