Target about 3%. Stress case 2.2%. Base coupon 1.25%.
These are modelled figures for a building company in a Portuguese secondary city, before holder-level tax. They are targets, not promises, and they depend on assumptions listed on this page. Portuguese counsel has not yet confirmed the tax assumptions.
How each lever moves the holder yield.
One company per building, rent 20% below market, rental income exempt under RSAA. The dashed line is the 1.25% base coupon: every case below, including the worst, stays above it.
Source: Lar Commons financial model v2.2, 14 October 2026. Holder cash yield before holder-level tax.
Scale decides whether affordable rent can pay anyone.
| Structure (PT secondary city, 20% rent discount, RSAA) | No CIA | With CIA |
|---|---|---|
| One company per flat (about €240k raised, about €8k a year fixed costs) | −1.3% | −0.8% |
| One company per building (about €3.5M, about €20k a year) | 1.5% | 2.0% |
| + building bought 15% below market | 1.8% | 2.4% |
| + 25% subordinated 0% impact bond (launch structure) | 2.4% | 3.25% |
| Pooled company with the same levers (Phase 2 reference) | 2.9% | 3.7% |
| Stress: 8% vacancy, +0.5pp maintenance (per building, CIA, all levers) | – | 2.2% |
If the two tax regimes cannot be combined.
The 3.25% model assumes the RSAA income-tax exemption and the CIA property-tax relief both apply to the same building. The decree that created them (DL 97/2026) neither allows nor forbids this. It is the first question for our lawyers.
| Tax regime (per building, bought 15% below market, 25% impact tranche) | Target | Stress |
|---|---|---|
| RSAA + CIA (assumed above) | 3.25% | 2.2% |
| CIA only, with the moderate-rent regime (about 10.5% effective tax on rental profit) | 2.9% | ~2.0% |
| CIA only, full 21% corporate tax | 2.6% | 1.7% |
| RSAA only (pay purchase and property taxes) | 2.4% | 1.45% |
€4M, one building, Coimbra or Leiria.
| Community bonds (senior) | €3M · 75% |
| Impact bond (subordinated, 0%, first loss) | €1M · 25% |
| Sponsor co-investment | 5%, same terms |
| Homes | ~15–18 two-bed flats |
| Example unit value | €220k |
| Market rent / our rent | €1,100 / €880 |
| Term | 10 years, indicative |
The city will be whichever municipal assembly votes the CIA benefits first. Lisbon does not work yet: capped rent there yields under 1%.
What it costs, and who earns what.
- Crowdfunding platform: 3–7% of the amount raised (estimate).
- Tokenization setup: €10–50k (estimate).
- Legal setup: €30–80k, then €2–5k per building company (estimate).
- Building company fixed costs: about €20k a year, at or below 0.6% of capital.
- Sponsor (Pedro Correia's operating company): manages the property for a cost-based fee, disclosed as a related-party service, and co-invests 5%.
- Sponsor promote: 20% of distributable cash above a 3% payout to holders. Below 3%, nothing.
- No free tokens for the team.
What the model assumes.
| Assumption | Value used | Status |
|---|---|---|
| Location | Portuguese secondary city (Coimbra or Leiria) | Pending council vote |
| Rent discount | 20% below market; at or below 80% of INE median (RSAA) | In law since 1 Sep 2026 |
| Rental income tax | 0% under RSAA | Counsel to confirm for the company |
| Purchase and property taxes | IMT and stamp duty exempt, no IMI for 8 years, no AIMI (CIA) | Needs municipal vote and IHRU contract |
| RSAA and CIA together | Both apply | Unconfirmed: the key open question |
| Purchase price | Whole building about 15% below market | Depends on the deal found |
| Impact tranche | 25% of capital at 0%, first loss | No anchor signed yet |
| Bank debt | None, or concessional at 2.5% or less | Policy |
| Stress case | 8% vacancy, +0.5pp maintenance | Modelled |
| Holder tax (not deducted above) | 28% withholding for Portuguese residents; 25% or treaty rate for non-residents | Current law |
How to read these figures
They come from a spreadsheet-style model, not from a building we own. The base coupon is sized to be payable in the worst modelled case, but it is not guaranteed if losses exceed it. The profit share can be zero. Read the risks.