Golden Visa – Investment Funds

The investment fund option has steadily grown in popularity since residential real estate in Lisbon, Porto, Algarve & other coastal areas have become no longer eligible.

New changes in the law have also increased the minimum investment amount in Regulated Investment Funds to EUR 500,000.

For investments in Investment Funds, Portuguese legislation requires that –

  • Investments must be held for at least 5 years
  • At least 60% of the investments must be realized in commercial enterprises
  • The Head office of the fund must be in the national territory of Portugal

It is important to remember that if you have dual EU status, you will be ineligible for this option of the Golden Visa program. (you can only qualify for Non-habitual residency)

Investment Funds potentially deliver better returns to real estate investments, especially now that investments can only be made in residential units located in the Portuguese interior regions. They are also more tax efficient.

While fund-based Golden Visa investments require significant due diligence, the application process tends to be significantly faster than with property-based applications. The exit costs are also far lower than with property.

The downside is that funds do carry some degree of potential risk. However, this risk can be mitigated if you were to do adequate due diligence before investing. If you choose the fund-based option, you will not be able to access your capital until the investment has reached maturity. This contrasts with the real estate option, where you can sell the property as soon as you meet the requirements for permanent residency or citizenship.

The current processing timeline for fund-based Golden Visa applications is around 12 months.

After 5 years, the primary applicant and their family members can apply for Permanent Residency or Citizenship, provided they satisfy certain conditions.

Contact us to know which investment fund is a safe investment for you.

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