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Portugal Golden Visa investment fund explained: Apply for Portuguese residency in 6 steps

Portugal Golden Visa investment fund

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Portugal Golden Visa investment funds offer foreigners the option to get residency in Portugal. We live in a world where borders are no longer boundaries, and global investment opportunities have taken center stage. Among these opportunities, one program that has enjoyed remarkable success since its launch is the Portugal Golden Visa investment fund. This article explains the Portugal Golden Visa and how to join the program by investing in investment funds.

Portugal Golden Visa explained

The Portugal Golden Visa is a residency-by-investment program introduced by the Portuguese government in 2012. It allows non-European Union (EU) citizens to obtain a Portuguese residence permit by making certain investments in the country. Investing in Portugal for citizenship is, however, yet to be possible. 

You can choose from many options, including real estate, investing in capital funds, contributing to scientific research, or donating to the art industry. The Portugal Golden Visa investment fund is another possibility. The minimum investment amounts vary on the investment route.

What is an investment fund?

An investment fund is where money from multiple investors is pooled to invest in various assets. Investment funds offer individuals and institutional investors the opportunity to invest in a diversified portfolio of support that they might not have access to individually, such as stocks, bonds, and other securities. 

How does the Portugal Golden Visa investment fund work?

The Portugal Golden Visa investment fund is a collective investment scheme to attract foreign investors. The minimum amount is €500,000 ($545,000), which will involve investing in venture capital mutual funds, private equity, real estate, or other approved sectors. You can split your investment into different sectors to diversify your portfolio. 

Note that Portugal real estate investment differs from buying real estate by yourself since investment funds are from multiple investors, and the property is generally for profit and not personal use.  

List of investment funds for Golden Visa

There are many options for investment funds in Portugal. You must ensure that the Portuguese Securities Exchange Commission (Comissao Do Mercado De Valores Mobiliarios/CMVM) approves it.

Here is the Portugal Golden Visa investment fund list of securities. You can also locate qualified investment management companies here to help you diversify your portfolio and ensure investment returns. There are also numerous companies for private equity and venture capital routes. 

How to choose a fund for investment?

Investment can be a tricky subject. Most people need clarification on the technical terms involved in it. As such, you should consider the following factors when choosing an investment option.

  • Risk Tolerance: Assess your risk tolerance, which refers to your comfort level with the possibility of investment fluctuations and potential losses. Different funds have varying levels of risk, so choose one that matches your risk tolerance.
  • Time: Determine how long you are willing to invest and wait for the profit to turn, whether it’s short-term (less than three years), medium-term (3-5 years), or long-term (5+ years).
  • Track Record: Review the fund’s historical performance over different periods to assess its consistency and ability to meet its investment objectives. However, keep in mind that past performance does not guarantee future results.

It’s advisable to hire an investment lawyer or management company before investing. As investments have risks, it is better to have an expert help you navigate the complexities. 

apply for portugal golden visa through investment funds

The yield of Portuguese investment funds

While there is technically no accurate and foolproof way to predict investment as market conditions constantly fluctuate, historically, investment yields range from 3 to 10%. When investing in residential real estate, the returns range between 5 to 8%

Requirements for the investor of the Portugal Golden Visa investment fund

Interested in the Portugal Golden Visa investment fund? Make sure to prepare the following documents when applying for a Portugal Visa via investment activity:

  1. Valid passport.
  2. Health insurance.
  3. Proof of valid entry to Portuguese.
  4. Proof of no criminal records.
  5. Affidavit of maintaining investment.
  6. Declaration of no tax obligations.

Check this official SEF publication for the templates. 

6 Steps to apply for Portugal Golden Visa investment fund

You can apply for the Portugal Golden Visa investment fund in six steps.

Step 1: Obtain a taxpayer number (NIF)

A Portuguese taxpayer number (NIF) is needed when investing in Portugal. It is necessary for proper identification for tax purposes. It allows authorities to track and associate investment activities with an individual or entity for taxation and reporting purposes.

Take the first step towards obtaining your Portuguese NIF by clicking the button below and completing the process online. For only $150, you can easily acquire your NIF and enjoy the benefits it offers.

Step 2: Open a bank account in Portugal

To open a bank account in Portugal, you must visit a bank with your identification documents, proof of address, and NIF. Many banks are friendly to foreigners, such as Activo Bank, Banco Bpi, Banco N26, Banco Santander Totta, BNP Paribas, Caixa Geral de Depositos, Credit Agricole, Millennium BCP, Novo Banco.

You can open a bank account in Portugal through an online service, that allows you to open a bank account remotely (3 to 4 weeks) or in-person (1 to 2 weeks). Click the button below to get started.

Step 3: Buy units in an investment fund

The next step is to buy participation units in investment funds, which, as mentioned, can be in real estate, venture capital, private equity, or mutual funds. You can delegate this task to fund managers, but overseeing and participating in the selection is still better. 

Step 4: Register in Portugal

When you choose the Golden Visa investment fund option, ensure your investment is verified and registered with the CMVM, Bank of Portugal, and the SEF. These institutions will make a declaration confirming the investment and stating that it fulfilled the minimum requirement to be eligible for a Golden Visa. 

Step 5: Apply for the Golden Visa

Now that you have completed the investment requirements, you can apply for the Portugal investment visa. It is essential to submit your application to the relevant Portuguese authorities. This process requires providing the Portugal Golden Visa requirements, including evidence of investment, a valid passport, and the previously mentioned NIF (taxpayer number). The application costs an average of €5,000 ($5,450).

Step 6: Get your residency card

After completing the application process for the Golden Visa, the next step is to obtain your residency card in Portugal. It involves attending an appointment at the SEF office, where you will submit additional documents and biometric data, such as fingerprints and a photograph. The SEF will then process your application and issue a residency card, proving your legal residency status in Portugal. 

Note that it is not possible to obtain Portugal citizenship by investment, only residency. 

Benefits of the Portuguese Golden Visa investment fund

Aside from getting an opportunity to be a resident in Portugal after five years, the Portugal Golden Visa investment fund has more benefits:

  • There are no taxes on the profits of investors in the form of dividends by those who do not become tax residents of the country.
  • There are fund managers who can supervise your funds. 
  • A more diverse portfolio also avoids considerable loss. 

Disadvantages of the Portugal Golden Visa investment fund

There are also a few cons of the Portugal Golden Visa investment fund:

  • Not all investors may find the Portugal Golden Visa investment fund suitable because it requires them to entrust their funds to third parties responsible for making investment decisions and managing the investment strategy, unlike owning a real estate property.
  • Some funds also require that you guarantee the investment for years. Such may not be agreeable to those who want a short-term commitment.
  • There are plans to abolish the Golden Visa program or increase the capital requirement. For that reason, it is better to join the program as soon as possible.

Get your Golden Visa in Portugal with Own Property Abroad

Do you want to obtain a Golden Visa in Portugal? Thanks to our knowledge and experience in the local market, we can help with your Golden Visa and real estate matters, such as legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of the Portuguese market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected].

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Leave your name and email below – We’ll reach out and assist you with obtaining a Golden Visa in Portugal.

Frequently Asked Questions (FAQs)

How to invest in Portugal for a Golden Visa?

To invest in Portugal, individuals can consider supporting approved avenues such as real estate, capital transfer, or investment funds for a minimum of €500,000 ($545,000). Carefully review the eligibility criteria, gather the necessary documentation, and follow the application process outlined by the Portuguese authorities.

What is the minimum investment for a Golden Visa?

The minimum investment for the Portugal Golden Visa investment fund is €500,000 ($545,000).

Can I get residency in Portugal if I buy a house?

Yes, it is possible to obtain residency in Portugal by purchasing a house through the Golden Visa program. The minimum investment requirement for real estate is typically €500,000 ($545,000), and meeting this criterion allows individuals to apply for residency in Portugal after five years.

Written by Monisa Ruth Simon

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