PORTUGAL Law and Practice Contributed by: Manuel Protásio and Catarina Coimbra, VdA
Although there is no specific tax on the transfer of mining rights, any associated real estate or significant assets involved in the transfer could be subject to Property Transfer Tax (IMT). This obligation can extend to international trans - actions involving foreign corporate structures, depending on double taxation treaties and the economic substance of the transactions. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining In Portugal, attracting investment for mining pri - marily hinges on several general features rather than sector-specific initiatives. The main fea - tures include a favourable regulatory framework, general government support for business and a strategic location with well-developed infra - structure, a skilled workforce. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors Foreign direct investment is not restricted under general Portuguese law. In respect of repatriation of profits and investment, there are no currency controls under Portuguese law, and money can be freely transferred into or out of the country. Also, there are no restrictions on the remittance of profits or investments abroad. 5.3 International Treaties Related to Exploration and Mining Portugal is not directly a part of any specific mul - tilateral or bilateral treaties exclusively dedicat - ed to the mining sector. However, as a member state of the EU, Portugal benefits from a range of treaties and agreements that the EU has estab - lished with global partners. These agreements collectively provide a favourable and protective
environment for investments, including those in the exploration and mining sectors. 5.4 Sources of Finance for Exploration, Development and Mining In Portugal, there are no specific or distinct sources of finance exclusively dedicated to the development of mining activities. Instead, mining projects typically rely on general finan - cial mechanisms available within Portugal and internationally. These include standard equity financing through stock markets and private investors, debt financing from banks and bonds, government grants and subsidies, and strate - gic partnerships or joint ventures. Additionally, companies may access funding from institution - al investors, European Union programmes, and general project financing methods. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining In Portugal, both domestic and international securities markets play crucial roles in financing exploration, development, and mining activities. Domestic markets allow mining companies to raise funds through shares and bonds, offering access to local capital and ensuring compli - ance with national regulations. These markets enhance liquidity, broaden the investor base, and provide localised expertise. International markets offer access to substan - tial global capital, diversify investor risk, and enhance company visibility and credibility. 5.6 Security over Mining Tenements and Related Assets In accordance with the Geological Resources Law, the creation of mortgages (in rem security) is only authorised over rights arising from a con -
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