GOLDEN VISA AND INVESTMENT FUNDS IN PORTUGAL
The Golden Visa is a program for investors who wish to obtain residency in Portugal and get travel authorization in the Schengen space.
There are a lot of ways to obtain a Golden Visa with the Portuguese government but one of the faster and most straightforward routes is by transferring money to an investment or a venture capital fund in the country – these are called the Golden Visa Funds
CAN I INVEST IN ANY TYPE OF FUND IN ORDER TO APPLY FOR THE GOLDEN VISA?
- For the purpose of the Golden Visa Fund, the investment fund or venture capital fund of your choosing has to be registered in Portugal and 60% of its capital has to be invested in Portugal
- Just like other funds all around the world you will be able to chose between funds that invest in real estate, commodities, technology, retail etc. Just chose the type your fund you are most comfortable with
WHAT ARE THE BENEFITS OF INVESTING IN A GOLDEN VISA FUND?
- You don’t need a high investment amount. You can get Portuguese citizenship with a €500.000 investment
- Depending on the fund itself and its tax structure you can pay little or no tax on capital gains and dividends
- Like most international funds, these are managed by experts and if you choose wisely your investment will be in safe hands while taking little effort from your end
- Yields around 3-6% but some might offer higher payouts
- No entry taxes
IMPORTANT ASPECTS TO LOOK FOR IN AN INVESTMENT FUND
When deciding on applying for a Golden Visa using an investment fund you should have in mind the following aspects regarding the fund you chose:
- Is the fund regulated by the CMVM? This gives you much more security.
- Is the fund eligible for a Golden Visa? According to the SEF, at least 60% of the fund has to be invested in Portugal and you need to maintain your investment for 5 years
- Who are the fund managers? Do they have experience in the market? Are the funds’ specifications in accordance with the legal framework of those types of funds?
- What industry or sector does the fund focus on?
- What kind of profitability does the fund promise? Are annual dividend payouts fixed or variable? What kind of ROI are you looking for?
- What level of risk are you willing to take on? The higher the risk the higher will be your potential return. If you are a risk-averse investor consider the possibility of investing in a fund that deals with low risk assets and investments
TO SUM IT UP, INVESTING IN A GOLDEN VISA FUND IS A GREAT OPTION IF:
- You are looking to diversify
- You want a quicker Golden Visa option ( buying a property is a more time-consuming process when compared with an investment fund)
- You don’t want to have to manage a property or pay someone to do it,
- You want to avoid paying property taxes
- You prefer experts and professional investors advising you and managing your assets
WHAT ARE THE BEST INVESTMENT FUNDS IN PORTUGAL AND HOW CAN I INVEST?
If you are looking to invest in a fund please contact us here. Depending on your goals and investment profile we can advice you on the various investment funds and the option that suits you best!
