Acquiring the Portuguese Golden Visa through venture capital funds is the best choice compared to the direct acquisition of real estate. Venture capital funds are managed by corporate experts that invest in diverse growth potential opportunities, making the fund investment for the Golden Visa a sustainable option.
These funds are regulated by CMVM (Portuguese Securities Market Commission), Portugal’s regulatory framework, and able to invest in a variety of sectors such as energy, industry, technology, or real estate.
The minimum investment amount through investment funds is much lower than the direct real estate acquisition gaining investor’s attention and an increase of almost 6% in comparison to 2019.
Currently and until January 2022 the minimum investment required is €350K while the direct acquisition is €500K. After this period the minimum investment required through fund route will increase to €500K and real estate acquisition will no longer be considered for the Golden Visa when acquiring a Property in the high-density areas such as Lisbon, Porto, and most of the coastal area of Portugal as defined by the new Golden Visa Regulations.
These Government measures were put in place to encourage growth in less populated areas in Portugal. However, not all investors are looking at this alternative due to the possible lower return on investment. Investors are still within the timeframe to acquire the Golden Visa at €350K before January 2022.
Benefits of investing in the Investment Fund option
- Your investment for the Golden Visa is taken care of by qualified experts in the sector you wish to invest in and throughout the total investment period required for the Golden Visa;
- You can obtain Portuguese residency for €350k if applied before January 2022;
- You may enjoy tax exemptions;
- Some funds offer a minimum return hurdle rate.
Who can invest in the fund option?
- Have a clean criminal record;
- Proof of sufficient funds;
- Proof of funds’ source.
What to consider when choosing an investment fund to acquire the Portuguese Golden Visa?
- It’s crucial to weigh any associated risk when choosing on an investment fund for the Portugal Golden Visa, hence, when investing you should take the following into account:
- The fund credentials, leverage, liquidity, and legal documents;
- The investment mandate;
- Financial return opportunity that suits your investment strategy.
- Investment funds maturity and profits to suit your needs, however, the investor should normally expect to get all profits after a period of 5-10 years;
- Diversified portfolio and sectors of investment that match your requirements.
The beneficiaries of the Golden Visa are entitled to:
- Residence visa waiver for entering Portugal;
- Living and working in Portugal, on condition that they stay in Portugal for a period of 7 or more days, in the first year, and 14 or more days, in the subsequent years;
- Visa exemption for traveling within the Schengen Area;
- Family reunification
- Applying for permanent residence (pursuant to the Aliens Act – Act number 23/2007 of 4 July with the current wording );
- Applying for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled (Act number 37/81 of 3 October, as amended).
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