While Portugal’s Golden Visa program historically drew real estate investors, recent regulatory updates have shifted eligibility. The country’s strong investment environment now focuses on other fund categories like Growth/Buy-out and Venture Capital, which we will outline.

Growth/Buy-out funds (Private Equity funds):

Private Equity (PE) funds in Portugal allow investment in established companies that may be underperforming or have growth potential, intending to restructure and improve them for profit. These funds often focus on sectors like renewable energy, agriculture, healthcare, and hospitality, providing significant opportunities for growth and consolidation. Compared to France and Spain, Portugal’s private equity and venture capital (VC) sectors are currently less developed, but they offer substantial growth potential. Additionally, the European Investment Bank’s involvement with private investors, pension funds, and insurance companies helps Portuguese fund managers raise larger sums, enhancing corporate governance.

Venture Capital funds (VC):

Venture Capital (VC) funds, including “Capital de Risco” or “Capital de Risco e Capital de Semente,” qualify for the Portuguese Golden Visa. These funds, managed by experts, invest in startups and small to medium-sized projects with strong growth potential, often across multiple industries, allowing for more diverse investment opportunities. VC investments in early-stage startups can yield significant returns and are a valuable avenue for cultivating new talent and innovative entrepreneurship. Investors should be aware that VC funds focus on specific sectors, and due diligence, along with ESG (environmental, social, and governance) best practices, are crucial. The Golden Visa offers various options, catering to different investor preferences and risk tolerance, categorized below.

Sustainable Investment Funds:

Growing interest in ESG (environmental, social, and governance) best practices has led to the emergence of sustainable investment options under the Golden Visa. For example, the Faiã Terra Fund and the ARV Terra Fund are two newly approved rural development funds in Portugal that promote organic farming.

Migration Projects:

Investment in migration projects under the Golden Visa scheme supports integration and immigrant support by investing in projects that benefit the well-being of new immigrants and contribute to their social responsibility.

Bitcoin and Cryptocurrencies:

Portugal became the first European country to offer residency through investment in decentralized cryptocurrencies like Bitcoin. By holding Bitcoin worth €500,000 (€500,000 for foreign investors), investors can gain residency via the Golden Visa program. This unique offering provides an advantage over other European economic systems, making Portugal a highly sought-after destination for cryptocurrency enthusiasts seeking residency in Europe.

Open-ended Funds:

Unlike traditional closed-end funds with fixed maturity dates, open-ended funds offer more flexibility, allowing investors to enter and exit at any time. This also means investors have more control over when they choose to liquidate their positions. These funds are especially appealing to those who prefer more flexibility in accessing their capital, offering more liquidity compared to traditional funds. However, investors should carefully review the specific redemption terms and notice periods.