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The Portugal Golden Visa is a Residency-by-Investment programme aimed at attracting foreign investment into the country's economy. It offers residency status to non-EU expatriates and investors who maintain assets in Portugal for a specified period. The Investment Funds option provides a quick and streamlined investment process, making it an efficient and appealing choice for investors.
Holding a Portuguese residency offers numerous benefits, allowing expats and investors to enjoy a high quality of life in one of the safest and sunniest countries in the world. Top financial advisors recommend investing in Portugal due to its promising economy, which has shown growth surpassing the European Union's average in 2024.
By choosing the Investment Funds Golden Visa option, you can invest directly in several profitable Portuguese companies, startups, and multiple industries such as hospitality and tech. This option not only provides a pathway to residency but also ensures a diversified investment portfolio in one of Europe's most dynamic economies.
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While the Portuguese Golden Visa was established in 2012, the Investment Fund option was only introduced in 2017 through an amendment to Law 23/2007 of July 4th. Specifically, Law 102/2017 of August 28th invested funds in a legal and eligible way to secure residency in Portugal.
The amendment states "Investment of €350,000* intended for the acquisition of units in investment funds or venture capital funds aimed at capitalizing companies, which are set up under Portuguese law, and whose maturity at the time of the investment is at least 5 years and at least 60% of the value of the investments is made in commercial companies based in Portugal." *Note: This amount was updated to €500,000 in January 2022 and remains the same to this day.
Investment Funds in Portugal work like anywhere else in the world, giving investors a chance to choose their preferred fund. The funds are usually managed by a financial services and management company, which collects capital from investors and strategically redirects it into select assets to increase capital. In Portugal, the operation is regulated under the Bank of Portugal. Upon receiving a profit, after the agreed period, the company will deduct its commission and redistribute the dividends to the shareholders.
In 2023, the Portugal Golden Visa underwent a significant change. The Real Estate option was discontinued and officially recorded in the Portuguese Gazette as Law 56/2023 on October 6, 2023. Article 1, paragraph I states that it "revokes residency permits through real estate investments." This decision was surprising, as the Real Estate option had brought over €6.4 billion to the Portuguese economy over the past decade. However, other investment options, like the Investment Funds, were not affected.
Currently, the Portugal Golden Visa offers the following options:
If your goal is to apply for Residency by Investment in a Fund, whether it's private equity or venture capital, it's crucial to first understand the requirements of the Portugal Golden Visa, even though the criteria are not particularly demanding. The list of documents provided below is indicative and may vary based on nationality and circumstances.
In addition to these standard requirements, choosing the Investment Funds option may involve additional criteria. The fund management company may, for instance, prefer experienced investors or impose other specific prerequisites. While the programme does impose some restrictions based on nationality, the vast majority of international investors should have no issues applying for the Portugal Golden Visa.
Speak to our team of professionals on residency by investment opportunities.
This investment option allows a diversified portfolio through several Funds; The Investment Funds must not be related to Real Estate in any capacity.
The Funds must be regulated by the Bank of Portugal and monitored by the Portuguese Securities Market Comission (CMVM) and the Portuguese tax authorities.
The Funds must have a maturity of at least 5 years.
The Investment Funds must be redirecting at least 60% of the capital to Portuguese companies.
The applicant must hold the investment for 5 years to keep the Residency Status, at which point Permanent Residency or Citizenship is available.
Choosing the investment funds In essence, companies managing these funds prefer to invest in privately owned companies that are not publicly traded. These funds may also acquire public companies with the aim of delisting them from the stock market.
Venture Capital Funds, known as Fundos de Capital de Risco in Portuguese, represent another type of investment fund typically eligible for the Portuguese Golden Visa.
There are countless investment funds available in the Portuguese market. Generally, most Golden Visa-eligible investment funds focus on private equity or venture capital. Before the 2023 amendment, real estate-related investment funds were much more common. These could either be in REITs (Real Estate Investment Funds) or, in the Portuguese context, SPVs (Special Purpose Vehicles) that acquire and manages properties. However, this option is no longer possible through the Portugal Golden Visa 2024 rules.
Investment Funds can have either a single focus or multiple focuses. Some financial services or fund management companies prefer to invest in only one company, while most funds tend to focus on one industry at a time. The Portuguese Golden Visa allows investors to diversify their investments across several Funds, as long as the minimum investment of €500,000 is reached.
This Funds option preferentially target companies in the Portuguese manufacturing sector and the circular economy, leveraging emerging trends and regulatory shifts to unlock opportunities for long-term growth and value creation
This Fund intends to invest in mid-sized hospitality assets with significant value-add potential. The portfolio includes hotels, resorts, and diverse indoor and outdoor facilities tailored to cater to tourists mainly located in Lisbon and the Algarve. For Golden Visa investors, this Fund option would require a minimum of €250.000.
This fund targets prime and emerging locations, focusing on hotels, apart-hotels, serviced apartments, and food and entertainment businesses. While our primary investment in Portugal is in Lisbon, we also seek opportunities in other European cities with excellent tourism potential, such as Madrid, Paris, London, Athens, and Istanbul.
The fund collaborates with a consortium of over 100 elite athletes to target promising opportunities within the global sports, media, and entertainment industries. It focuses on allocating 60% of its investments to premium sports assets situated in Portugal, managed by a trusted and specialised team. The remaining 40% is strategically earmarked for established international sports ventures, ensuring a diversified and robust investment approach.
In addition to the standard Golden Visa prerequisites such as being a third-country national and having a clean criminal record, investing in Funds requires specific documentation for validation, which may be requested by the investor’s bank, the fund management company, or AIMA (Portuguese Agency for Integration, Migration and Asylum). The following examples outline some of the mandatory documents, though additional paperwork may also be necessary:
In addition to the minimum investment requirement of €500,000, there are several other fees to consider. These fees will primarily depend on the fund management company, but common ones include:
Furthermore, the investment Fund option includes government application and processing fees. These fees vary depending on the number of applicants, such as the main applicant, spouse, dependent children, etc. Additionally, there are renewal fees because the Golden Visa needs to be renewed every two years until the investor reaches the 5-year mark, after which they can apply for Permanent Residency or Citizenship. For a large family, the government fees alone for a Golden Visa application can amount to up to €30,000
Before proceeding with the Funds option, investors must commit to a long-term investment plan, typically lasting 8 to 12 years. The experience of the fund-management company and the legal representation by a Portuguese law firm also influence the process duration.
The Exit Strategy is often a primary concern for Investment Funds and poses a significant risk. Given the longer time commitment required compared to most alternative Residency solutions, investors often lean towards more flexible options.
For Investment Funds, profitability is the primary goal rather than facilitating Residency status for Golden Visa investors. Most managers aim to maximize their performance-based bonuses by divesting the Fund at its peak appreciation. While initially beneficial, this approach can prolong the Fund's lifespan.
Nevertheless, this topic is crucial for any investor considering funds as a Golden Visa option and deserves thorough evaluation. Here are key considerations:
Disclaimer This page is intended solely for professional investors for informational purposes only. It does not constitute an offer to buy or sell any security or investment, nor is it an invitation to subscribe to any fund's units. It is provided purely for informational purposes and should not be construed as a prospectus or advertisement. This website is not intended for retail investors and should not be considered marketing. It is prepared for investors qualified to invest in the types of investments described herein. Explorer disclaims all liability related to the information contained in this document or arising from its use. Recipients should conduct their own assessment of the information provided. Nothing in this website is intended to provide, nor should it be relied upon as, accounting, legal, tax advice, or investment recommendations. It does not promise or represent future outcomes. There is no assurance that the objectives outlined will be achieved or that the investment will be successful. This website and any related informative material are governed by the laws of Portugal.
