Guide to the Portugal Golden Visa Program’s Investment Fund Option

The Portugal Golden Visa Program is one of the fast tracks to EU-citizenship. The scheme allows investors to obtain Portuguese residency in exchange for their investment. Created in 2012, the program continues to successfully fund and support the Portuguese economy. Since its introduction, the Portugal Golden Visa Program generated EUR 5 billion of income. 

The program’s popularity stems from its benefits:

  • A Golden Visa owner has the status of an EU resident. It means that they can live, work, and study in EU member countries. 
  • Portugal Golden Visa holders can travel to more than 183 countries freely. Golden Visa allows investors to travel without visa restrictions. 
  • Combined with the Non-Habitual Residency scheme, Portugal Golden Visa offers significant tax benefits. Investors using this combination pay fewer taxes for ten years. 
  • The residence requirement of the program varies between seven to fourteen days. It depends on the year of residency. Either way, compared to other methods of receiving a residence permit, this requirement is next to nothing.
  • The program also allows for a family reunion. Spouses, children, and parents can be included in the application under the dependent status.
  • Portugal is an amazing country. The Iberian country is safe, financially stable, beautiful, historically rich, gastronomically admirable, peaceful, and vibrant at the same time. Being a Portuguese resident means enjoying life on a new level.

There are several routes investors may choose to obtain a Golden Visa:

  • Investors may buy property as a form of investment. The traditional route requires a minimum of EUR 500,000 of investment. There are also the renovation or “low-density area” options. These options reduce the minimum requirement. Properties in need of renovation reduce the amount to EUR 350,000. If it is also in a designated low-density area, it reduces the minimum requirement to EUR 280,000.
  • Investors may create ten permanent jobs.
  • Investors may invest in scientific research projects in Portugal. The minimum requirement for this option is EUR 350,000.
  • Investors may invest in cultural and artistic projects in Portugal. The minimum requirement for this option is EUR 250,000.
  • Investors may take advantage of the investment funds of Portugal. These funds may vary among several sectors. The minimum requirement for this option is EUR 350,000.

The Investment Fund Option of the Portugal Golden Visa Program

The Portugal Golden Visa Program went through several changes in years. One of these changes was the introduction of venture capital funds. The original version of the program did not have the investment fund option. Implemented in 2018, the investment fund option requires a minimum of EUR 350,000 of investment.

What is “The Investment Fund Option”?

The Venture Capital -or the Investment Fund- option is a collection of investable funds. These funds are updated and managed by experts in different sectors. The funds usually have time or subscription limits. So, it is a good idea to find a profitable investment and act fast. The funds vary among different sectors such as real estate, technology, start-ups, energy, industry, etc. The funds within this option are regulated by the CMVM (the Portuguese Securities Market Commission).

Why is the Investment Fund Advantageous?

The traditional method of investment in the Portugal Golden Visa Program is the real estate option. However, even at the cheapest level, this route turns out to be costly. Although there is the EUR 350,000 option in real estate, it is almost impossible to find a property at that cost. There are properties outside the prime areas. Yet, they do not promise returns. 

On the other hand, the investment fund option costs a bit over EUR 350,000 including fees. It also offers the possibility of considerable profit. So, even from the starting point, the Investment Fund Option is advantageous.

What are the Benefits of the Investment Fund Option?

To start with, the available funds in this option are regulated and managed by professionals. The invested sum is thus in safe hands that aim to protect the fund. It is not an arbitrary investment. The route provides investors with a high possibility of profit.

The initial amount of investment is relatively low. The Investment Fund Option allows non-EU citizens to get Portuguese residency for slightly over EUR 350,000.

Return hurdle-rates over investments often ward investors off. In the Investment Fund Option, some options offer minimum hurdle-rates. These funds are extra attractive for investors.

Some funds within the Investment Fund Option are directly supported by the Portuguese government. It means that the investment is protected by the government. The support may be in the form of subsidies or financing. This mission is overseen by the IFD (Instituiçao Financeira de Desenvolvimento).

The Investment Fund Option also offers tax benefits. Returns over the capital in this option may be exempt from taxation.

Further strengthening the safety of the route, the funds within the Investment Fund Option are regulated by the CMVM (the Portuguese Securities Market Commission).

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