Venture Capital Funds are, from our point of view, a very smart way of investing to quickly apply to obtain a Golden Visa.
The investor benefits from diversification, not only within a single fund but also can build a portfolio of funds.
Funds are a great way of obtaining diversification because the fund will invest in a pool of assets and not just in one asset as you would probably do if you would invest in real estate.
Also, investment in funds tends to be a much simpler and faster way of investing than direct real estate investment and doesn´t require paying transmission tax (IMT) and stamp duty tax that you will need to pay if you buy a real estate asset.
As you know, funds are managed by professionals that can extract better value than the average individual investor.
Additionally, the fund´s income is not taxed, and the income paid to non-resident investors (provided they don´t live in a “tax haven”) is also not taxed.
Venture Capital Funds in Portugal are regulated and closely supervised by Portugal´s Securities and Exchange Commission (CMVM).
Funds are also audited by an external auditor, usually by a major international audit firm.
Funds have also a depository bank that has not only custody functions but also a supervisory and control role.
The minimum investment amount to apply for the Golden Visa is 500 thousand Euros.
Most of the investors that invest in VC funds usually have a low to mid-risk profile and prefer funds linked to the real estate market with expected returns between 3 to 10% per year.
The typical VC funds that invest in start-ups or SME companies with high growth potential usually have expected returns in the high teen area.
As part of the parliamentary process of defining in detail the More Housing bill, the Socialist Party (PS), which has a majority in the parliament, proposes to keep the Golden Visa Program alive, maintaining the VC Funds as the future most likely popular investment option.
Although not yet put in writing, the Socialist Party parliament group leader announced they will exclude the funds that invest in real estate. It´s still to be known who will determine which funds invest or not in real estate.
The Blue Portugal has a unique insight in the funds area because the founding members spent most of their careers in the financial area and have strong and long links with the major players in this sector in Portugal.
Don´t hesitate to talk with us on this investment path. You won´t regret it!