Money in PortugalThe Portugal investment fund for golden visa residency

Portugal’s sun, sea, and incredible quality of life have long attracted expat families. But Portugal’s residency-by-investment scheme ― the Golden Visa has truly been a gamechanger for families looking to move to one of Europe’s safest countries. The scheme grants qualifying investors and their family members the right to live, work and study in Portugal and allows free movement in Europe’s Schengen Area. 

The catch? There is none, you just need to invest in one of the Portugal Golden Visa investment options – either by buying property, renovating a building, or investing in funds. 

While most choose to invest in real estate to get Portuguese residency, a rising number of investors are selecting the fund investment option for the Golden Visa. 

This guide takes you through everything you need to know about the Portugal investment fund for the Golden Visa residency.  

What is the Portugal Golden Visa?

The Portugal Golden Visa, also known as the Residence Permit Program, is a five-year residency by investment initiative for non-EU nationals.

Since the program’s launch in 2012, over 20,000 Golden Visas have been awarded to families from across the world, and over €4 billion in funds have been raised, making it one of the most popular investor programs in the world.

The investment threshold starts from €280,000, with a wide range of investment options available. At present, most investors choose to go through the Golden Visa scheme by investing in real estate or funds.

Benefits of the Portugal Golden Visa

When it comes to deciding whether the Portugal Golden Visa is for you, it’s important to know about the program’s benefits. 

Key program perks:

  • Access to 26 nations in the EU and visa-free travel to 183 nations
  • Five years until you qualify for a European passport
  • Option to become a non-habitual resident and pay almost no tax for ten years
  • Short stay requirement
  • Your dependent children and dependent parents qualify for the same benefits
  • Second residence in a safe and stable country

Golden Visa investment options

There are a number of investment options on the table for the Portugal Golden Visa.

By far, the most popular routes investors take for residency are:

  • Invest €500K+ in a property of your choosing across the country
  • Invest €350K+ in renovations projects. Certain conditions apply.
  • Contribute €350K in investment funds across a range of sectors—including but not limited to— technology, energy, and real estate
  • Invest €280K+in renovations projects in low-density areas

Golden Visa Portugal: The investment fund option

In 2018, the Portuguese government added venture capital funds as an investment option for the Golden Visa. For a €350K investment in this fund, applicants are granted Portuguese residency in a few short months.  

What exactly is venture capital? It’s a pool of investment funds that are managed by corporate experts in the field. For example, if you want to invest in a start-up or a medium-sized project with strong growth potential, then the fund investment for the golden visa is a viable option.

Each fund is regulated and offers options to invest in sectors like energy, industry, technology, or real estate. The funds are regulated by Portugal’s regulator, the CMVM.

Benefits of the investment fund for the Golden Visa Portugal

  • The Portugal yield fund investment for the golden visa is handled by experts qualified in the sector you invest in
  • For a €350K investment, you can obtain Portuguese residency
  • Venture capital funds are tax-friendly. Dividends and capital gains returned to investors may be tax-exempt.
  • Some funds offer a minimum return hurdle-rate
  • Some funds are backed by the Portuguese government through subsidies or financed by the IFD (Instituição Financeira de Desenvolvimento).
  • The funds are regulated and they comply with the Portuguese Securities Market Commission rules. 

Top things to consider for the Portugal Golden Visa qualified investment fund

When deciding on a Portugal yield fund investment for the Golden Visa, it’s always important to carefully weigh any risk involved.

In general, for the Portugal Golden Visa qualified investment fund, you should consider the following: 

  • The investment mandate, the fund manager’s credentials, leverage, and liquidity and legal documents required for the respective investment
  • Some funds offer limited potential for capital appreciation but have a safer investment profile while others can have a more leveraged approach. For example, high-growth companies focused on technology have a different profile to property development projects that usually have a more predictable cash-flow curve
  • Funds can offer an early exit but as a rule of thumb, the investor should expect to realize all gains after five to ten years 
  • The risk-return profile of these funds will depend on sector exposure and portfolio diversification

Choose your Portugal investment fund wisely

Not every private equity fund in Portugal qualifies for the Golden Visa program. You need to make sure the chosen fund ticks all the boxes listed by the Portuguese border service (SEF) and that the investment fund is regulated by the Portuguese CMVM. 

Ask yourself the following:

  1. Is the fund regulated by the Portuguese authorities?
  2. Is it 100% eligible for the Portuguese Golden Visa according to SEF?
  3. Does the fund have the right attributes to safeguard the investor’s Golden Visa status?

Additionally, you must maintain your Portugal golden visa qualified investment fund for at least five years in order to be eligible for permanent residency and citizenship in Portugal.

Frequently Asked Questions about the Portugal Golden Visa Qualified Fund Investment Option

How does the Portugal Golden Visa qualified investment fund work?

To qualify for the Golden Visa, you must make a qualifying investment first. The Portuguese government offers the option of investing in Portugal venture capital funds, at the minimum value of €350K. The funds are allocated to a Funds Manager with credentials, who will in turn invest the amount in a sector of your choosing.

What are the advantages of investing in Portugal investment funds?

The funds themselves are managed by experts in each sector, and you can obtain residency quickly through your fund investment. To top it off, many investors are exempt from paying tax. If you’re worried about security, don’t worry, the funds are also regulated by the Portuguese Securities Market Commission.

Do all Portuguese investment funds qualify for the Portuguese Golden Visa?

No not all investment funds in Portugal qualify, it’s advisable to consult with an expert first.

What is the venture capital in Portugal?

The venture capital in Portugal welcomes investors to invest in various sectors (including real estate) in Portugal, usually through investments in start-up companies or medium-sized projects with a strong growth outlook.

 


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