Mercan Hospitality Fund

Mercan Group now offers a private equity hospitality fund that invests in hotel operations in Portugal. The hospitality sector has seen a steady growth in Portugal driven by tourism, travel and foreign investment, with the hotel occupancy rates reaching on average 80%. The fund invests in several four star hotels in Portugal.

Mercan Group

Mercan is a internationally branded hotel operator in Portugal. The Mercan brand is well known, most trusted Golden Visa Partner, offering premium investment opportunities in Portugal and Greece — and Securing EU Residency for our Investors. Mercan is a fully Integrated Developer and Operator.

Founded in 1989, Mercan Group is a global leader in investment, education, and immigration. Mercan delivers high-quality hotels that boost tourism, create wealth, and foster entrepreneurship.

• Mercan since 2015, has attracted, over €1.3 billion has been invested in 32 hotels (internationally known hotels Marriott, Wyndham, Hilton, IHF),
• Attracted 4100+ Golden visa investors.
• With operations in 30+ countries, Mercan leads with innovation, world-class service, and community impact.

Minimum Investment

Subscription to the fund starts by capital transfer minimum 500.000€, acquisition of shares / units in a non-real estate collective investment entities. The fund has already has 250 golden visa investors. Additional AIMA fee and Legal fee.

• Minimum Investment – EUR 500,000
• Eligible for Portugal Golden Visa
• 2% fixed return paid out annually
• Investment Exit after 6 years
• Guaranteed* Buyback for the original amount
• Portuguese PR and Citizenship. (Minimum residence 7 days /yr)
• Taxes: Income from your Golden Visa investment (e.g. fund distributions) is typically tax-free in Portugal for non-residents. Portugal also imposes no wealth tax and no inheritance/gift tax on worldwide assets.

MERCAN PRIVATE EQUITY FUND II (MPEF II)

• Sector: Hospitality fund
• Type: CMVM Regulated closed-end private equity fund
• Regulatory approval: CMVM Registered under no. 2331, issued by the Regulator
• Investment Strategy: Hospitality focused with 2 operating hotels and 1 hotel under development
• Target Fund Size: 121M€
• Participant Minimum Investment Amount (for GV purposes): 500,000€
• Projected Annual Return 2% per year (Tax Free for Non-Tax Resident in Portugal)
• Subscription Fee: None
• Management Fee: 0.25 % + 2,000 € (paid by the Fund)
• Hotels – HOTEL ALBUFEIRA INDIGO by IHG (operational), QUINTA DA PRAIA (development, CORFU ACHARAVI HOTEL (operational)

Client Benefits

• Guaranteed* Buyback by Mercan From year 6 onwards
• Hotel Benefits Free 7 nights stay per year (Mercan Hotels)**
• 12% Returns over 6 year period.

Taxation

Considering Mercan Investment Funds and Non-Resident Tax Individuals, the distribution and redemption income, generally, is not subject to withholding tax in Portugal for non-residents, provided certain requirements are met. In addition, the disposal of Participation Units, typically, is not taxed in Portugal for non-residents. Nevertheless, exemptions may not apply if the investor qualifies as a tax resident in a country with a more favorable tax regime, as listed by the Portuguese Minister of Finance (e.g., Qatar, Uruguay, Panama, Hong Kong). The ability to reduce or avoid double taxation depends on the investor’s residence, local tax laws, and potential tax treaties with Portugal.

US Investors

US persons must have accredited investor status (must have net worth of $1m or $200k income) to invest in this fund. Please contact us for more information.