Portugal offers spellbinding experiences for avid travelers, foreign investors, and international families alike. Thanks to its golden visa program, it’s possible for expats to acquire residency by investment and even Portuguese citizenship in this charming nation. One of the best ways to get a Portugal Golden Visa is via the Portugal golden visa investment fund option.
In this guide to Portugal’s investment funds for the golden visa, we cover the following:
- Benefits of the Portugal investment fund
- Key considerations to take into account before investing in funds
- Fund eligibility criteria
Portugal golden visa investment fund changes 2022
From 1 January 2022, the Portugal Golden Visa will undergo an extensive makeover. Investment options will significantly change, including the investment amount needed for the Portugal investment fund Golden Visa. Specifically, a capital transfer in investment funds or venture capital funds to the amount of or greater than €500,000 will be needed to procure legal residency in Portugal.
The funds themselves must be focused on the capitalization of companies registered under Portuguese law, with a minimum maturity of five years at the time of the investment and at least 60% of the value of the investments made in commercial companies on national territory.
Interestingly, Portugal Golden Visa Statistics already point to an influx of investors rushing to invest in the Golden Visa this year before the changes kick in 2022, with enhanced interest in the funds investment golden visa option.
You still have this year to enjoy the current investment conditions. For more information, check out our Portugal Golden Visa changes article.
The rising popularity of the investment fund option for the Golden Visa
Property is usually the preferred route for investment in Portugal when it comes to applying for the Golden Visa. However, more and more investors are turning to the investment fund option, seeing it as a new way to acquire legal residency.
Having ownership of a property can be attractive to some, especially when it can result in rental income or even a holiday home. In practice, this method may not suit everyone, as finding and purchasing the right property can be difficult and time-consuming.
Since November 2018, the Portuguese Parliament passed a new law making venture capital funds (or FCR – Fundo de Capital de Risco) a qualifying investment for those wishing to apply to Portugal’s Golden Visa. With a minimum investment of €350,000 in an FCR fund that qualifies for Golden Visa, investors can now successfully apply for the Portugal citizenship by investment program and have immediate access to the program’s benefits.
The name Venture Capital may sound daunting and complicated but it is simply a designation of investment funds that are managed by corporate experts in the field who seek to invest in start-ups or medium-sized projects with strong growth potential. Each fund has a specific well-defined investment mandate and may focus on sectors such as energy, industry, technology, or real estate. Funds are regulated by Portugal’s regulator, the CMVM.
Benefits of Portugal investment fund golden visa
There are a number of benefits for picking the investment fund option for the golden visa.
- The investment fund golden visa is professionally managed by experts in each specific sector
- You can obtain Portuguese residency from a €350,000 investment
- Venture capital funds are a tax-efficient vehicle — dividends and capital gains returned to investors may be tax-exempt
- Some funds offer a minimum return hurdle rate (usually of 5%) which means managers will only be compensated if the fund performance is above a certain percentage
- Some funds have the support of the Portuguese Government through subsidies or financed by the IFD (Instituição Financeira de Desenvolvimento)
- The funds are regulated and must comply with the rules stipulated by the Portuguese Securities Market Commission (CMVM), which means that fund managers are regularly audited by third parties