Portugal Golden Visa – Investment Fund

Residency by Investment

Overview of the Portugal Golden Visa Investment Fund

The Portugal Golden Visa program, launched in 2012, caters to non-EU citizens seeking residency through investment. Aimed at attracting international capital post the 2008 economic crisis, the program has been highly successful, raising over €7 billion. Investors benefit from Portugal’s appealing features such as a scenic landscape, coastline, pleasant climate, and affordable living costs. Notably, the program allows for the attainment of permanent residency or citizenship in just five years.

Importance and benefits of obtaining a Portugal Golden Visa

The Portugal Golden Visa program offers a range of appealing features, including a minimal residency requirement of 7 days per year for 5 years and a swift processing time of approximately 3 months for visa issuance post-investment. Residency grants visa-free travel within the Schengen zone, and after 5 years, investors can apply for citizenship, providing access to over 185 countries, including the UK, EU, Canada, and the USA. The program also extends benefits to dependent children and elderly parents. Clear tax rules, special programs for non-habitual residents, and Portugal’s ranking among the best countries for business further enhance its attractiveness, though basic Portuguese language skills are required.

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Processing Time

8 - 10 MONTHS

Understanding The Portugal Golden Visa Program

Eligibility Criteria for The Golden Visa

  • Minimum net worth €200,000 
  • No criminal record 
  • Age 18 years old and above 
  • No deportations / Visa refusals 
  • Language requirement (for citizenship, not required for residency)

Types Of Investments Accepted Under the Golden Visa Program

  1. Contribution of €250,000 to support artistic production or the preservation of national heritage (€200,000 in a less populated area)
  2. A donation of 500,000 euros for activities carried out by public or private scientific research institutions
  3. Invest €500,000 in Portuguese mutual funds or venture capital funds.

The Investment Fund Option in Detail

An investment fund serves as a financial services entity designed to attract investors and augment capital. The core mission revolves around gathering funds from investors and strategically allocating them to specified assets. These assets can be invested in several areas, like Portuguese companies, industrial facilities, or the European stock market with the exception of real estate. The fund, following profit generation, distributes returns to investors after commission deductions.

Details on How the Investment Fund Operates

The Portugal Golden Visa program requires investors to transfer €500,000 as part of the capital transfer requirement. This amount must be utilized to acquire units in investment funds or venture capital funds within Portugal, specifically aimed at supporting the capitalization of businesses. The invested capital is directed towards companies operating under Portuguese law, and the investment is subject to a minimum maturity period of five years. Moreover, a focal point of the program mandates that at least 60% of the fund investments should contribute to commercial companies based in Portugal.

Expected Returns and Benefits For Investors

While returns can vary based on market conditions and the performance of the chosen investment funds, investors can anticipate potential financial gains over the maturity period. The Portugal Golden Visa program, through the investment fund route, offers investors the opportunity to contribute to the country’s economy while benefitting from the potential growth of the businesses supported by the funds. Additionally, successful participation in the program grants investors the valuable advantage of obtaining Portuguese residency, providing access to various lifestyle and travel benefits within the European Union.

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    Advantages Of Choosing The Investment Fund Route

    Advantages Details
    Minimal Fees and Taxes Opting for investment funds avoids substantial fees and taxes associated with real estate acquisition. Purchasing property in Portugal entails IMI transfer tax (avg 6%), stamp duty (0.8%), and annual municipal taxes (between 0.3-0.5% annually); these taxes are absent in investment fund participation.
    Secure Investment Regulated by entities such as the Portuguese Securities Market Commission (CMVM), the Bank of Portugal, and external Fund Management companies, registered Portugal funds undergo scrutiny from the Portuguese Tax Authorities. This robust regulatory framework ensures compliance with Portuguese laws, tax regulations, and approved investment plans.
    Tax Efficiency Depending on the fund’s tax structure and the investor’s status, participating in a fund may offer notable tax advantages. Certain scenarios permit the exemption of withholding tax on fund-generated income, especially for investors not residing in Portugal. Conversely, all income from real estate rentals in Portugal faces a fixed 28% taxation.
    Diversification Governed by Portuguese legislation, funds must achieve a specified level of diversification. This regulation sets limits on the percentage any particular asset or investment may constitute within the fund portfolio, fostering risk mitigation and diversification for participating investors.
    Potential Returns Based on the fund’s focus, annual yields, and potential capital appreciation, returns from the investment fund route may surpass those of other Golden Visa program-related investment options.
    Delegated Management Unlike the responsibilities of a real estate landlord, owning a share in an investment fund offers a hassle-free experience. Fund managers shoulder the management burden, although this aspect may not appeal to investors who prefer more control.

    Program Summary

    Learn more about the country and it's citizenship by investment.

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      Step-By-Step Guide to Applying Through Investment Fund

      Detailed Process Of Applying For The Golden Visa Through Investment Fund

      1. Engage Migrate World for assistance
      2. Choose an appropriate investment fund option in Portugal.
      3. Obtain a tax identity number (NIF) and open a bank account in Portugal.
      4. Sign and complete all necessary subscription documents for the chosen fund.
      5. Undergo evaluation and approval as an investor by the fund manager.
      6. Transfer the required funds from your bank account to the fund account.
      7. Receive a fund subscription declaration from the fund manager.
      8. Submit all Golden Visa documentation to Migrate World and pay the SEF application fee.
      9. Schedule and attend a SEF Biometrics Appointment in person.

      Necessary Documentation and Paperwork

      1. Official identification, such as a passport or government-issued ID
      2. Criminal Record:
      • Obtained from the country of origin or residence
      • Legalized / Apostilled 
      • Issued within three months before submitting the application
      • Translated into Portuguese
      • 3. Tax identification number from the country of origin or tax residence
      • 4. Completed Application Form with authorization for the consultation of the Criminal Record in Portugal
      • 5. Letter of Statement declaring compliance with the minimum time requirements for the relevant investment activity in Portugal
      • 6. Payment receipt for the ARI application fee

      Tips For a Smooth Application Process

      • Verify your chosen investment fund’s eligibility for the Portugal Golden Visa.
      • Prepare transparent financial records to prove the legal origin of your funds.
      • Stay updated on any changes to the Golden Visa program requirements.
      • Engage legal professionals with expertise in Portugal’s Golden Visa.
      • Thoroughly understand and accurately fill out the application form.
      • Monitor the progress of your Golden Visa application regularly.
      • Adhere to program timelines, including the minimum investment period.
      • Secure clear documentation as proof of fund transfer to the investment fund.

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      Frequently Asked Questions

      It is a way to get a Portugal Golden Visa by investing €500,000 in these funds.

      Certainly. There is no limit to the number of funds you can invest in. As long as your total investment reaches at least €500,000, you meet the criteria for applying for the Portugal Golden Visa. Keep in mind that legal fees may rise with each additional fund you choose to invest in.

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