|Low Investment Option||The standard real estate investment option requires a minimum investment of €500,000 while the bank deposit option requires a €1 million transfer. The Portuguese Golden Visa Investment funds route also requires an investment of just €500,000.|
|Lower Fees and Taxes||While it is also possible to invest just €350,000 EUR into certain real estate projects that require renovations (or €280,000 for such projects located in an area of low density) the investment fund option of course comes without any the fees and taxes that are associated with real estate investments in Portugal.|
|Secure Investment||Investment funds in Portugal are subject to high levels of regulation by the Portuguese CMVM, National Bank and the Tax Authorities. Funds investors need to have their investment plan approved by authorities which must comply with must national legislation, tax laws.
There are also limits to how much of particular asset can make up the total investment portfolio within the fun which encourages diversification constitute of the total fund portfolio. This allows for diversification which in turn can reduces the risk for investors. Portuguese Golden Visa Investment Funds are generally low to medium risk and offer a secure investment.
|Tax-Efficiency||In many cases Portuguese golden Visa Investment funds can provide a tax efficient strategy for investors. Income generated by funds and paid to non-tax residents is in some cases tax exempt from withholding taxes allowing the investor to earn yields in a tax efficient manner. Those that invest in real estate meanwhile, will be subject to a 28% tax rate on Rental income.|
|Quick, Easy & Hassle Free||There is no need to travel to Portugal to participate as an investor in an investment fund since everything can be done remotely and it is a very straightforward process to invest which can have a significant impact on the timeline of your application. Many of the Golden Visa specific funds either match the length of the Golden Visa and its pathway to citizenship or allow for an early withdrawal. (6-7 years)|
|Earning Potential||Depending on the performance of the fund the investor may have the opportunity to earn significantly higher returns from his investment.|
|Unique Investment Opportunities||Investors have the opportunity to participate in funds that hold a number of different asset classes included government bonds, real estate and companies. We are seeing a significant increase in Portuguese Golden Visa applicants choosing the investment fund route now that recent Golden Visa reforms mean residential real estate investments in Lisbon and Porto and most of the Algarve are no longer qualify as eligible investments for the Portuguese Golden Visa program. This change does not effect investment funds which can be used to invest in property in either city.|
The Investment Fund Pathway to the Golden Visa requires that the investor purchases a minimum of €500,000 in Portuguese Golden Visa investment funds or venture capital funds dedicated to the capitalization of companies, whose maturity, at the moment of the investment is, at least, of five years.
Funds are regulated by the Portuguese Regulator CMVM and in order for the fund to be eligible as a Golden Visa investment a minimum of 60% investments must me made into commercial companieswith head office in Portugal.
Below is a list of eligible golden visa funds as of 10th October 2023, since the law was changed prohibiting ‘real estate’ investment funds as ineligible investments under the golden visa program.