The Investment Fund Option of the Portugal Golden Visa Program

The Portugal Golden Visa Program is active since October 2012. In eight years, the program’s most popular investment route has been the EUR 500,000 real estate investment option. It still is the most popular option. However, one of the alternative routes is on the rise. The route of EUR 350,000 of investment in venture capital funds grows in the number of applications. This guide briefly describes the investment fund option of the Portugal Golden Visa Program.

What is the Investment Fund Option?

The Portugal Golden Visa Program did not have the investment fund option until 2017. The route is implemented by an amendment called Law no. 102/2017, of August 28th, 2017. The amendment reads:

“Capital transfer of the amount of 350 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least, 60% of the investments are realized in commercial companies with head office in national territory(1)”

The Benefits of the Investment Fund Option

The investment fund option of the Portugal Golden Visa Program has certain benefits. One of these advantages is the lower minimum requirement of the route. The program has a capital transfer option with a requirement of EUR 1 million. The main real estate route of the program also requires EUR 500,000. Yet, the investment fund option requires only EUR 350,000.

The investment fund option has lower taxes. Property acquisition in Portugal comes with several taxes. Some of these taxes are stamp duty, IMI transfer tax, and annual taxes. The investment fund option is not subject to any of these taxes.

The investment fund option is also one of the safest investment methods. The funds in Portugal go through an extensive regulation web. This web involves the Portuguese Securities Market Commission (CMVM), the Bank of Portugal, the Portuguese Tax Authorities, and the external Fund Management company. Thanks to these regulatory agents, the method becomes a secure way to invest.

The investment fund option of the Portugal Golden Visa Program offers high potential returns. In many cases, this option yield higher annual and eventual returns than other routes within the scheme. Since the funds are often diversified, higher returns come combined with lower risks of loss.

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