IN PORTUGAL

WHY PORTUGAL
One of the best places to live
Imagine living in a country where you can nd a huge diversity of landscapes and environments in a small area: sandy beaches as far as the eye can see, golden plains and mountains, vibrant and cosmopolitan cities and a millennial heritage. Here you can practice water sports, play golf on the best courses in the world, contemplate nature, experience the most novel well-being treatments, or just get out into the country and discover 1 unbeatable heritage, wines and cuisine. This document will help you to get to know Portugal, and understand the opportunities that it offers to investors.

LIVING AND INVESTING

SUMMARY
One of the best places to live Golden Residence Permit Program Where to invest Investment opportunities (upon request)

Eduardo Fonseca - Property and Investments Advisor

WHY PORTUGAL

Climate
In terms of climate, our winters are mild and summers are hot and dry. Did you know that the number of hours of sunshine per year reaches values as high as 3300 in the south of the country and 1600 in the north, some of the highest in Europe?

According to the World Bank, Portugal is the 43rd largest economy in the world, with one of the highest GDP growth rates over the last 40 years among the OECD countries. Portugal is the 17th most peaceful country in the world out of a sample of 153 countries (Global Peace Index 2011) and holds 32nd place out of 182 countries in Transparency International (Corruption Perception Index 2011).

The Portuguese
The Portuguese are gracious and f r i e n d l y, we l c o m i n g a l l v i s i t o r s regardless of where they come from. And, in fact, visitors do come here from all over the world, as the country is located on the western coast of Europe and, as such, is a point of entrance into the Schengen zone. A large part of the population speaks foreign languages, specically English.

Best Quality of Life

In 2010, the European Consumers Choice Awards rated Lisbon (capital of the country) as the "Best Destination 2010, and in 2012 Porto deserved the same award. In 2011 Lisbon was voted one of the 42 cities in the world with the best quality of life, by the Worldwide Quality of Living Survey 2011.

service, there are freely available private health institutions and professionals. The hospital network is made up of modern and well-equipped units, distributed throughout the country, which have long-standing relationships with the major international insurance companies. In order to make overseas patients feel more comfortable, hospitals are implementing personalised patient care and monitoring services, with English as the language of communication. Portugal also has an Integrated Medical Emergency System, which guarantees the fast and accurate provision of healthcare to accident victims or anyone suffering a sudden illness, and rapid response times by the emergency services (did you know that average emergency call response times currently stand at 7 seconds?). The World Health Report by the World Health Organisation awarded the Portuguese health system number 12 in its ranking.

Geographical
Portugal has an excellent geographical location. At the meeting point between three continents - Europe, Africa and America -, it has always been central to the most important international routes. Here you can nd international airports all over the country - Lisbon, Faro and Porto have regular connections to major cities in the world.

Cost of Living
Most foreigners consider the cost of living to be low. According to UBS (Prices and Earnings 2010), the price indices are attractive: Food: 68.2 (index: New York = 100); Clothing: 53.3 (index: New York = 100); Services: 67.9 (index: New York = 100); Metro ticket: 1,40 (journey of approximately 10 km); B u s t i c k e t : 1 . 8 0 ( j o u r n ey o f approximately 10 km); Restaurant: 40 (3 course meal in a good quality restaurant).

The Country
With almost nine centuries of well dened geog raphical borders, a democratic parliamentary regime with political stability prevails in Portugal. Portugal has been a member of the European Union for 26 years and forms part of the European Monetary System, using the European single currency.

Healthcare
In Portugal, ofcial services for providing healthcare to the population are organised as the National Health Service. In addition to this public

Eduardo Fonseca - Property and Investments Advisor

WHY PORTUGAL

Air transport
Portugal has 11 international airports with high levels of safety, service and comfort. These airports offer regular connections with all European countries and major countries in the Americas and Africa, operated by major ag carriers and low-cost airlines. Daily regular and low-cost ights to major European capitals are available at Porto airport. The main low-cost airlines offer a signicant range of destinations from this airport.

Flights to all European capitals particularly Madrid (1 hour ight), Paris and London (2,5 hours ight) - can be found at Lisbon airport, the main air port in Portugal, along with intercontinental ights to the United States, Africa and Brazil. Other highlight is the recent direct ight to Dubai, providing fast connections to all of Asia. In addition, fast and frequent ights leave from here to all other airports in the Portuguese network, including Madeira and the Azores. Faro airport is known for its lowcost connections to major European

markets, particularly the United Kingdom, Germany and Ireland. This wide range of low-cost destinations makes the Algarve a destination that is easy to access. Funchal airport offers regular direct connections to major European countries. London is the destination with the most departures per week, and there is an emphasis on low-cost operations to this major European capital.

THE GOLDEN RESIDENCE PROGRAM

The Golden Residence Program

On 28th January Order No. 1661-A/ 2013 was published which changed the conditions for the application of the special residence permit for investment activity in Portugal. The most signicant changes contained in this document are: 1.To access the residence permit it is now only necessary to create 10 jobs instead of 30 jobs. 2.The investment of the amount of or above 1 million Euros can be held in unlisted companies on the stock market (shares). 3.Acquiring the property in coownership as long as each of the co-owners invests more than 500.000,00. 3.1.The requirement of acquisition of property may also be d e m o n s t r a t e d by p ro m i s s o r y contract with a deposit of or above 500.000,00. This means that the

After the fth year the permit holder may apply for permanent residence followed by Portuguese citizenship and passport, which will bestow on the holder all the rights of a EU national including free movement of 4.To renew the residence permit peoples in all the EU member states, including the United Kingdom and applicants may stay a minimum of: Only 7 days during the rst year Ireland. and not 30 days. Only 14 days and not 60 days The holders of Golden Residence Permit for Investment Activity have the during the following two years. right to family regrouping.

residence permit for investment can be applied for with a mere signed promissory contract. The promissory contract must be registered at the Land Registry Ofce and before renewing the residence permit for investment, the title deeds of purchase and sale must be presented. 3.2.A declaration issued by a nancial institution is also necessary to prove the transfer of the capital for payment of the deposit in the promissory contract in the amount of or above 500.000,00 (ve hundred thousand Euros). 3.3.The properties purchased can be rented out or leased for commercial, agricultural or tourist exploration.

Th e h o l d e rs o f t h e G o l d e n Residence Permit have all benets of the Schengen Visa, entitling the holder freedom of movement in the 26 member states: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.

Eduardo Fonseca - Property and Investments Advisor

WHERE TO INVEST

Where to invest
Introduction
It is in difcult moments that good and solid opportunities stand out as foundations of an economy and a society. This looks like a clich, but it is a fact that is proven every year. I have been working with my team in a project that trys to identify real estate investment opportunities that provide safety and protability in Portugal. It is undeniable the caution with which national and international investors look to the Portuguese economy, so each investment proposal must be well substantiated and documented. In this context, there are some economic activities that deserve our attention, and have aroused the interest and the surprise of investors: Tourism and Hospitality, Olive Oil, Wine, Cork. These are four sectors that Portugal excels in a Worldwide perspective! climate throughout the year. Lately we have witnessed a growing tourist interest for our major cities, Lisbon and Porto. The fact that the number of low-cost air ro u t e s h ave r a i s e d e l i m i n a t i n g barriers to more distant markets such as Asia or Eastern Europe, is a tremendous contribution to this phenomenon. The fact is that Lisbon and Porto register a very high demand from tourists worldwide, with the hotels and accommodation units to register great occupancy rates. It is no coincidence that Porto was voted as n u m b e r 1 d e s t i n a t i o n by European Travellers Choice 2012!, and Lisbon was in eighth place in the same TOP. To invest in real-estate that can be converted into Boutique Hotels, Hostels and short-term rental Flats, for example, as long as they are well located in the Historical and Central neighbourhoods of the cities, it has proved to be a safe investment with high r e t u r n . I n t h e I N V E S TO R s perspective, it is important to bear in mind that the opportunities exist! Considering the circumstances, many owners do not have the capacity to make the necessary investments that would transform their homes and properties in highly protable units. Actually, there is rather a need for many owners to convert their assets into cash, which leads to opportunities and consequently great protability. Portugal produces olive oil and wine with a remarkable quality and without owing anything to anyone in terms of knowledge and experience. We have inter national recognition certicated by numerous awards earned throughout the world. We have land and fantastic properties, with quality and often unique dimension. We have people, technicians and engineers trained by Portuguese universities that ensure high professionalism and productivity in the management and development of modern agricultural companies. An investor who seeks an ag ricultural society with production of wine and/or olive oil, acquires a production facility that facilitates a highly competitive product around the world and easily exportable for different markets. It is not difcult to nd business opportunities in real-estate that provide 10% or more in return of the amount invested, right from the rst year of the investment. Olive Oil exports from Portugal already grew 40% in 2012, after a growth of 20% in 2011. Wine exports grew 20% this year. Cork is an exceptional and surprising material that is constantly nding new uses, and is conquering industries and designers from all over the world. 50% of all the Cork produced in the world comes from Portugal. A property of Montado (the name for the land with Cork trees) provides very interesting yields to the owners, without the need of any special care for the trees or the land. The work that we have been developing allowed us to represent several exceptional businesses that fall in what it is described here. Businesses that are based on activities that, despite the crisis, have grown considerably, a fact which can be explained by the high quality offered by these products and services, that conquered international markets and are not dependent on the fragile domestic demand. And then theres the Golden Residence Program, with unique benets to any Non-EU citizens who wants to access the Schengen countries in an easy way. The portuguese property sector is very competitive, and buying a house can just be the simplest way to get an interesting and secure yield in Portugal.

Regarding tourism and hospitality, the Portuguese have always been people of great voyages. We know how we like to be received, and of course we also know how to receive, and love to receive. Portugal offers a fantastic landscape diversity in a relatively small area, from the mountains to the beautiful beaches, islands and plains. With hotels to ensure efcient coverage throughout the territory, Portugal is a preferred destination for Golf, Surng and BirdWatching, for example; and this is also explained by the excellent

Eduardo Fonseca - Property and Investments Advisor

WHERE TO INVEST

European countries. There was no excessive construction in Portugal and the gures are not misleading - the Portugal is recognised internationally national housing stock only grew by for the high quality of the work 16% between 2001 and 2011. done by its architects. Proof of this are the two Pritzker Prizes that have In economic terms, over a 7 year period already been awarded to the architects Portugal experienced a nominal variation in prices in the order of 18%, Eduardo Souto Mouta and lvaro Siza which is practically irrelevant when Vieira. Likewise, very attractive compared to other countries and prices have made real estate in corresponds to a percentage much lower Portugal into a competitive and than recorded ination (25%). trustworthy sector.

Competitive property sector

(properties with an area of around 120m2) Portugal comes 26th out of a total of 38 places, showing that the prices charged in Portugal are much lower than those charged in the rest of Western Europe. The potential of the Portuguese market is shown in a study by the World Bank which, in its "Doing Business" report (2012), ranked Portugal in 30th place in a ranking of 185 economies.

Over the course of the last 20 years, Portuguese real estate has experienced major development, both due to the fact that construction quality is becoming increasingly more sustainable, and due to the evolution of spending power. However, even so, the Portuguese real estate market did not suffer the exaggerated growth seen in other

Portugal is also ranked among the best countries in the world for doing business: in 2012, Forbes business magazine ranked Portugal in 24th place, on a list made up of 141 countries. Aspects such as property rights, innovation and technology, individual, commercial and monetary freedom and investor protection were all taken into In a comparison of median property account for this evaluation. prices in major European cities Therefore, Portuguese real estate is a safe haven for domestic and foreign investment, and none of the data available suggest the existence of a property bubble in Portugal. This fact in itself is proof that there are competitive conditions for investment in the sector.

Median property prices in major European cities (properties with an area of around 120m2)

Source: APEMIP Property Guide

Eduardo Fonseca - Property and Investments Advisor

WHERE TO INVEST

Tourism and Hospitality

Judging by latest tourism data published by Instituto Nacional de Estatstica (INE, the national statistics ofce), in 2012 the number of nights in hotels grew, reaching 39.8m, conrming the Tourism and Hospitality Sector as one of the most relevant in the Portuguese economy. This numbers can be explained by foreign tourism in Portugal, that does appear to have beneted from the political instability in northern Africa since 2011 and the consequent substitution effect. Non-residents' number of nights in 2012 was the highest since the beginning of the series, surpassing the peak in 2007.

Tourism is an important sector for Portugal, accounting for roughly 4% of both total employment and gross value added, and generating an annual surplus in tourism trade of over EUR5bn. Given the current domestic environment, tourism exports represent a potential support for overall GDP growth.

as a prime tourism destination in the following articles (please click on the links): Top 10 countries for 2013, by GlobeSpots.com (number 1: Portugal) Lisbon Best Value for money city in the World, by TripAdvisor.com 5 Re m a rk a bl y A f f o rd a bl e Travel Destinations for 2013, by Forbes (number 1: Lisbon, Portugal) A L G A RV E B e s t G o l f destination in Europe, by Todays Golfer LISBON, The 4th Most Beautiful City in the World, by UCityGuides.com The TOP 4 Best HOSTELS in the World are in Lisbon , by HostelWorld.com 8 Reasons to Go to Portugal Now, by Fodors Travel Intelligence White lights, big city, by FT.com

Tourism is booming specially in the main cities, Lisbon and Porto. The signicant increase of low cost ights to this cities and the multiple great reviews from world renowned guides and publications, are bringing tourists from markets that had no relevance until a few years ago. Asian and North American tourists are common to nd everyday in the tourist hotspots of this cities, amongst other traditional tourists, such as Europeans, The performance by country of origin Brazilians and Africans (specially from varied considerably. Portugal's two most Angola). important markets, the UK (24% of the total overnight stays by non-residents) Portugal is also a TOP destination for and Germany (14%) both recorded activities such as Surf, Golf, Bird positive growth, of 2.3% and 9.6%, watching and Whale watching (in respectively. The most rapid increases the Azores). were recorded by visitors from France (15%), Ireland (14.1%) and Brazil You can nd some of the recognition towards the excellence of Portugal (12.7%).

Eduardo Fonseca - Property and Investments Advisor

WHERE TO INVEST

Olive Oil
Portugal is one of the TOP 10 Olive Oil producers in the World. An Olive Grove in Portugal is a Great Investment because you can nd a mix of incredible market and production contributions to get good yields from the properties. The motives for this are: 1.World Olive oil consumption has increased signicantly , and is expected to maintain a strong growing t re n d . T h e re c o g n i t i o n o f t h e Mediterranean cuisine as the healthiest in the world, and of the Olive oil as a key element in this diet, boosted the consumption to a 37% growth in the last 15 years. USA, China, Canada and Brasil are incredibly dynamic markets that are still far away from maturity, and that are adding value and volume to the traditional European markets. 2.Olive trees demand a special combination of Land, Weather and Water that you cant nd in many places around the World. The Mediterranean is the perfect location to produce Olive Oil, and is doing it for more than 6000 years. 3.The Alentejo region in Portugal has a special key advantage towards all the other countries in Southern Europe: the Alqueva dam. This dam has the biggest articial lake in Europe, and feeds a magnicent irrigation system which spreads for tens of thousands of ha in the Alentejo region. This means that in Alentejo you can have 3 or 4 very dry years, without any rain, and you can still provide water to the Olive Groves, and dont have any production lost because of it. When it doesnt rain enough in Spain, Italy or Greece, the

production in this countries is severely affected, and because these are the biggest world producers of Olive Oil, low production will mean higher prices. When this happens, Portuguese producers can sell even more Olive Oil (because they dont have any drop in production) at higher prices, without any increase in production costs. 4.The pressure from a growing demand, combined with some dry years in Spain (where production dropped), are key factors to the rising of the Olive Oil price (bulk and bottled). This trend is expected to continue for some years. 5.Perfect combination of Land, Weather and Water leads to the Best Olive Oil quality in the world, conrmed by several world awards won by portuguese producers.

7.You can invest only in Land, and/or in some of the nest Olive Oil Plants you can nd in the world. 8.You can buy properties from 50ha to over 1000ha, according to your available capital and objectives. 9.You can develop and market your own brand, for worldwide distribution, and get the best ROI, or you can sell bulk Olive oil to great Portuguese, Spanish and Italian brands. You can make money according to what you are most experienced at. 10.You have great professionals available, and great Universities and Schools training new people.

11.You can get your money back in a short period of time. Depending on your market strategy, you can have your 6.You dont have to wait for the trees to investment back in 5 years. grow (for about 6 or 7 years). You can purchase mature Olive groves that will 12.T h e n a n c i a l a n d e c o n o m i c last for hundreds of years, with full e n v i r o n m e n t p r o v i d e s g o o d production right from year 1 of the opportunities to buy properties at investment. interesting prices, sometimes less 50% than the actual cost of land in Spain (and with better quality). Portugal - Olive Oil production and exports Exports (Tons) Production (Tons) 80000 60000 40000 20000 2008 2009 2010 0 2011

Source: INE - Instituto Nacional de Estatstica

Eduardo Fonseca - Property and Investments Advisor

WHERE TO INVEST

Wine

The Portuguese wine has managed to assert itself internationally for being a unique and differentiating proposition, based on the diversity and uniqueness of their grapes and their terroirs, which is associated with a very consistent quality and excellent value for money. Today t h e i n t e r n at i o n a l re p u t at i o n o f Portuguese wines is unquestionable. Po r t u g u e s e w i n e e x p o r t s a l s o demonstrate this dynamic industry. In 2011 exports of wines grew 10% in value... Exports 2011: 675M; % of production exported: 42%; Portugals winemakers have been Nr 10 worldwide wine exporter; conservative in one respect keeping Nr 12 worldwide producer. faith with their grapes. And no wonder!

In Portugal you can produce: White Wine, Red Wine, Ros Wine, Sparkling Wine, Moscatel, Port Wine, Madeira, and you can do it in 14 different Wine Regions, each with special characteristics, contributing for the famous uniqueness of each Portuguese Wine. Port and Madeira are two exclusively portuguese wine types, both renowned worldwide.

Portugals varieties are unique, with thrillingly different avours. Yet qualitywise there has been no resting on traditional laurels. A quarter-century of investment, education, openmindedness and air has meant explosive change. Choice has multiplied too. Alongside coops and large companies, myriad estates now make their own distinctive wines. Terroir is so diverse. From north to south, from east to west, from mountain to maritime vineyards, hot and dry or cool and green. In every style, from zz to port, from crisp dry whites to elegant reds, in so many diverse ways, Portuguese wines are unique.

Cork
Portugal is the number one worldwide producer of Cork . Actually, over 50% of all the cork produced in the world comes from Portugal. Cork comes from the Corktree, and it takes at least 25 years for one Corktree to produce Cork. After that, Cork can be extracted every 9 years. Cork trees Cork's Popping are protected in Portugal, it cant be cut, and there are more than 750.000ha of Potential, From Stools to land in Portugal lled with Cork trees Surfboards, Designers Are (this land is often called the montado). Finding New Uses for the Long-Neglected Wood (WSJ) To own a montado, means to own an incredible piece of land that without demanding any kind of special care will provide an interesting yield every 9 years cycle. Wall Street Journal recently posted an article about the multiple uses for Cork, and the incredible versatility and excellence of this material. I invite you to clink on the link and read about...

Eduardo Fonseca - Property and Investments Advisor

ABOUT ME...

About me...
Im Eduardo Fonseca, Director of a Decises e Solues agency in Portug al. Decises e Solues is the biggest portuguese network of professionals specialised in F i n a n c i a l A d v i s o r y, Insurance, Construction and Real-Estate. I lead a team of Consultants, and I have a strong network throughout the country that can provide specic solutions to every client. Im actively searching for Outstanding Investment Properties that can provide Secure and Signicant income to anyone interested to invest in Portugal, taking advantage of the current economic and nancial environment that provides unique investment opportunities. In my Blog you will nd Ideas, Projects and Properties that will for sure be taken in serious consideration when you make your investment decisions. You will get to know Portugal a little bitbetter too. Ill be honoured to assist you with your investments, looking forward to build a strong and protable relationship.

To watch...
Click on the text above the pictures and check out the videos! CHOOSE PORTUGAL

PORTUGAL THE BEAUTY OF SIMPLICITY

Services
Property and Investments advisor Business advisor Real estate procurement Real estate agent Financial advisor Insurance advisor

LISBON STARTUP CITY

E-mail
eduardo.fonseca@mac.com Please send me an email telling me about the kind of investment or acquisition that you are looking for in Portugal. Ill send you a detailed Investment Opportunities Portfolio.

Sources
http://www.livinginportugal.com http://www.portugalglobal.pt http://blog.newscred.com http://oiproperties.wordpress.com http://www.winesofportugal.info http://www.casadoazeite.pt http://www.ine.pt

Eduardo Fonseca - Property and Investments Advisor