The Good News
The Portuguese Golden Visa remains one of the preferred investment options for applicants to the program: Eligible Investment Funds in the form of Venture Capital Funds (VCFs).
After the announcement made on February 16, 2023 by the Portuguese Prime Minister, which led many to believe that the Portuguese Golden Visa would soon be phased out, the Socialist Party (PS), which holds the majority in parliament, approved on July 19, 2023 the continuation of the Golden Visa Program. Real estate investment has been excluded, but Eligible Investment Funds like Venture Capital Funds (VCFs) remain a viable option. It’s anticipated that this investment avenue will garner significant interest, maintaining the program’s reputation as one of the best European residency visa initiatives.
What’s in it for you
Eligible Investment Funds such as VCFs present a strategic and efficient route towards obtaining a Golden Visa. Since their introduction in 2017 as a fresh investment alternative for the Golden Visa Program, these funds have captured a significant market portion, accounting for nearly 30% of all applications. The rise in popularity, especially among North Americans, has been notable. In our firm, given our expertise in Eligible Investment Funds, we oversee VCF investment processes for investors worldwide.
Key points on Eligible Investment Funds:
- Investors in these funds benefit from diversification, not just within one fund, but across multiple Eligible Investment Funds.
- Such funds offer an optimal diversification strategy as they encompass various assets and are managed by experts who typically outperform the average individual investor.
- It’s crucial to highlight that income from these funds isn’t taxed, and income paid to non-resident investors remains untaxed (unless they reside in a “tax haven”).
- VCFs in Portugal, being Eligible Investment Funds, are closely monitored, regulated, and supervised by the Portuguese Securities Market Commission (CMVM), a member of the European System of Financial Supervision.
- These funds undergo audits by external auditors, typically from the “big five”.
- The funds have always a depositary bank, providing both custodial and oversight functions.
- A minimum investment of €500,000 in Eligible Investment Funds is required to apply for the Golden Visa via fund investment.
Important information to follow up
Direct real estate investments, whether residential or commercial, might render funds ineligible for the Golden Visa. Our understanding, post consultations with leading law firms, is that funds primarily investing in real estate for refurbishment and subsequent sale or lease will be excluded.
However, funds investing in sectors like tourism, agriculture, elderly housing, and student accommodations, which inherently involve real estate infrastructure which is needed for the services provided by those industries, should qualify as Eligible Investment Funds.
Typical VCFs that invest in SMEs or startups, targeting single or multiple economic domains, will undoubtedly be considered for the Golden Visa program.
We’re closely monitoring these developments to ensure our clients receive top-tier information to guide their investment decisions.
The Blue Portugal boasts unparalleled insights into the Eligible Investment Funds domain. Our founding members, with extensive financial careers spanning global regions, have deep-rooted ties with Portugal’s primary players in this sector.
For more information on this investment avenue, please contact us. Embark on a seamless and successful journey with us!