PORTUGAL Law and Practice Contributed by: João Gonçalo Galvão, Carolina Cardoso Alves, Miguel Paquete and Mafalda Oliveira Cordeiro, CS’Associados
5.6 Annual Entity Maintenance and Accounting Compliance Maintenance and accounting compliance costs for each entity are as follows. • Lda./S.A. Annual costs include accounting, tax filings, corporate secretarial work, registration fees, fees paid to members of corporate bodies, and (when applicable) chartered accountant fees. • Real estate investment funds/companies • Monthly CMVM fees: 0.0266‰/NAV, which must not be lower than EUR200 or higher than EUR20,000. • Quarterly stamp duty: 0.0125%/NAV. • Management fees: to be agreed with manager, generally ranging between 0.4% and 0.6%/com - mitments. • Depositary fees: to be agreed with depositary, nor - mally ranging between 0.025% and 0.10%/NAV). • Regulatory compliance. SIGIs Same costs as S.A. with auditing board; additional audit costs every seven years; regulatory compliance and Euronext fees. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time According to Portuguese law, a person or entity may occupy and use real estate for a limited period of time without buying it by entering into one of the following arrangements: • agreements with in rem effects – surface right, usu - fruct, right of use and housing, easement or right of periodic habitation; • lease agreement; • free use agreement; • shop use agreement (typical of shopping centres); • agreement for the use of space and provision of services (typical for office centres); or • concession or other licences and authorisations (granted by the State, autonomous regions or local authorities).
6.2 Types of Commercial Leases Lease agreements of urban properties are entered into for either residential or non-residential (commercial) purposes. There are no specific subtypes or distinct regulations within the non-residential lease type (such as offices, retail or hotels), although the parties tailor the terms and conditions thereof to the underlying activity. Commercial properties may also be occupied under atypical lease-type agreements due to the compo - sition and regulation of different interests, property use dynamics and undertakings (specifically from the owner, by committing to more than just passively allowing the use of premises). These agreements are a mix between lease and services agreements, and are quite common in relation to shopping centres (shop use agreements), office spaces and even logistics centres (agreement for the use of space and provi - sion of services). 6.3 Regulation of Rents or Lease Terms The NRAU gives wide flexibility to the parties of com - mercial leases to regulate the respective terms and conditions, limited however by some mandatory rules (as further detailed hereunder). In general, the parties may freely determine the rules applicable to the duration, termination and renewal of leases for commercial purposes. The NRAU general regime applies if the parties do not expressly regulate differently. The parties may also freely establish rent values and the evolution thereof as well as an intended rent update regime (see 6.5 Rent Variation and 6.6 Deter- mination of New Rent ). 6.4 Typical Terms of a Lease Duration Maximum initial term duration of 30 years. In the absence of express stipulation, duration shall be of five years, with no limitations existing regarding mini - mum duration.
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