32 UGLOBAL IMMIGRATION MAGAZINE
Hotel shared ownership investments entail a range of legal , financial , and business factors that require the involvement of professional teams .
Legal teams ensure investors understand and comply with relevant legal requirements , and review and draft contracts to ensure reasonable transaction terms and conditions following the law . Meanwhile , financial teams conduct due diligence , assess the financial health of hotel operations , assist in formulating investment budgets and financial plans , analyze investment returns , and evaluate financial risks . In addition , market research teams assess the hotel ' s location ' s market outlook and development potential . Unlike residential investments , where investors can face risks due to limited personal investment experience , multiple professional teams help mitigate risks in hotel-shared ownership investments .
“ The rise and fall of the Portugal golden visa property purchase model makes the emerging investment model of hotel shared ownership more promising .
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Portugal ' s Golden Residence Permit Program explicitly states that “ the real estate may be acquired in a co-ownership regime , provided the Applicant for the ARI invests an amount equal to or above € 350 thousand , € 280 thousand in a lowdensity territory – NUTS III level , in the acquisition and rehabilitation , as well as through a shareholder limited liability company in which the Applicant is the shareholder .” Therefore , the legislation ensures the feasibility of obtaining residency through shared ownership investments .
The option of shared ownership investment could be a future trend in property-based investment immigration programs . Then , how does shared ownership investment in hotels benefit applicants in investment immigration applications ?
Driven by investors ' immigration-oriented investment motivations , developers offer a friendly policy of assisting shared ownership investors with a collective exit . This friendly policy not only facilitates sales but also ensures a quick recoup of funds to reinvest in new projects , which is a win-win situation for both stakeholders . In addition to the collective exit mechanism , developers provide other perks such as reduced transaction taxes and renovation value-added taxes , fixed rental income from the hotel , and profit-sharing from hotel operations .
These incentives indirectly offset investors ' investment amounts , allowing them to obtain immigration status securely and cost-effectively . The two parties are attuned to the same direction and determine to make things happen .
SHARED OWNERSHIP INVESTMENTS ARE A GROWING TREND
The rise and fall of the Portugal golden visa property purchase model makes the emerging investment model of hotel shared ownership more promising .
Governments with investment immigration programs , international investors , property developers , immigration industry service providers , and all stakeholders should pay attention to and draw lessons from Portugal ' s experience .
In summary , the Portugal ’ s golden visa attracted substantial foreign investment , driving robust growth in the Portuguese real estate market and creating business and employment opportunities for property developers and related stakeholders . This investment tied to immigration status not only stimulates the economic contributions of new immigrants but also brings various benefits to the Portuguese government , including economic gains , employment , and an enhanced international image .
By suspending the property purchase route , the government aims to balance its citizens ' interests , residency-oriented overseas investors , and local developers , achieving a comprehensive win-win situation among various stakeholders .
In this context , shared ownership investments are trending towards a more mature and diverse future , and those who adapt to change first will ultimately emerge as the winners .
AILEEN ZHAO
Aileen Zhao possesses an in-depth understanding of Dubai ' s dynamic immigration landscape and its real estate market from her years of experience . Her professional journey also includes a pivotal role as a B2B market specialist , spearheading the promotion and sales of European golden visa programs ( purchase property models ). Presently , she contributes to Globevisa ’ s global branding and marketing , utilizing her extensive experience to fortify global outreach and refine brand positioning , striving continuously to realize Globevisa ' s vision of empowering more people to achieve their global citizenship aspirations .