A Guide to Portugal Golden Visa Investment Funds

Portugal's Golden Visa is one of the world's leading residency by investment (RBI) programs. It offers numerous benefits, including a pathway to EU citizenship after five years and a Portuguese passport.

The program offers various ways to invest. The most popular option is a Portugal Golden Visa investment fund. These funds provide flexibility and potential financial returns.

This article is part of our Complete Guide to the Portugal Golden Visa. Below, we explore Portugal Golden Visa Investment Funds in detail.

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What are Portugal Golden Visa Investment Funds?

Portugal Golden Visa investment funds are pools of money managed by professionals. These funds often focus on areas like technology, healthcare or start-ups.

Portugal’s Securities Market Commission (CMVM) regulates all golden visa funds. The CMVM’s job is to ensure that funds follow the rules and adhere to their criteria.

Investments in Portuguese funds have seen a sharp increase in recent years. The removal of the real estate investment option in late 2023 has helped make funds the most popular route to secure a golden visa in Portugal.

Related article: What are the Portugal Golden Visa Investment Options?

What Investment Funds Qualify for the Portugal Golden Visa?

Two main types of funds qualify for the Portuguese Golden Visa: venture capital (VC) and private equity funds.

Not all investment funds qualify for the Golden Visa program. To qualify, the fund must:

  • Be registered with the Portugal’s Securities Market Commission (CMVM)
  • Have 60% of the portfolio invested in Portuguese companies
  • It must not be a fund that invests in real estate
  • Issue shares with a maturity of at least five years

The Portugal Golden Visa investment funds list is extensive. To learn more about specific funds, speak to one of our specialists.

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Investment Fund Costs

A minimum capital transfer of €500,000 in an approved fund is required to qualify for the golden visa. However, Holborn offers financing options that allow you to reduce that amount.

With this financing solution, the provider lends the full €500,000 for a seven-year term. As a result, this reduces the upfront cost to €168,000, making it the most cost-effective route to securing a golden visa.

Investors also have a second option, which we outline below.

Profit-Generating Investment Option

Investors can access the investment fund option with an upfront return of around €90-100,000, depending on the fund. This amount is applied towards the €500,000 investment, bringing the initial capital required closer to €400,000.

Additional loan facilities are available to cover up to €74,000. With these applied, the total upfront investment is around €325,000.

This option allows you to secure a golden visa at a lower upfront cost. You may also be able to cover related expenses and fees from the upfront return.

Read our dedicated guide to learn more about additional fees and costs.

1000+

Families helped to gain citizenship/residency

$300 million

Amount we have invested in CBI programmes

$450 million

Value of property assets purchased in the last three years

40+

Client nationalities we have helped secure a golden visa

Who Can Invest in These Funds?

To apply for a golden visa in Portugal through the investment fund route, applicants must:

  • Be a non-EU/EEA/Swiss citizen
  • Be over the age of 18
  • Have a clean criminal record

You must keep your investment for at least five years. If you do not, you will no longer meet the requirements for the golden visa program. This will result in you losing your residency permit.

Related article: The Portugal Golden Visa Requirements Explained.

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Why Choose Portugal Golden Visa Investment Funds?

Portuguese Golden Visa investment funds offer several benefits, such as:

  • Spreading risk: funds expose you to multiple assets, helping to lower risk.
  • Security: the Portuguese Securities Market Commission (CMVM) regulates all funds alongside the Bank of Portugal. The Portuguese Tax Authority also carries out regular audits.
  • Tax efficiency: funds often provide tax benefits. For example, if you are not a tax resident, you will not pay tax on capital gains in Portugal.
  • Potential returns: investment returns are never guaranteed. However, investment funds have a greater return potential than other golden visa investment options.
  • Professionally managed: a fund manager looks after and runs the fund. Their job is to handle the investment decisions on your behalf.

Investment Fund Risks

Like all investments, there are risks involved. Here are a few things to watch out for:

  • Market changes: the value of your investment can go up or down.
  • Time commitment: you must keep your investment for at least five years.
  • Time-consuming: you must make sure the fund meets the rules set out by the Golden Visa program. You will also need to carry out research to ensure the fund aligns with your goals.

While you cannot avoid the first two points, you can take measures to make the process less time-consuming. Working with an expert can help streamline the process. They can advise on funds that comply with the program and provide the financial advice you need.

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Investing in Portugal Golden Visa Funds: Step-by-Step Process

Here are the basic steps to investing in Portugal Golden Visa funds:

  • Research: find funds approved by the CMVM that fit your goals
  • Talk to experts: get expert advice to discuss your options
  • Open a bank account: you will need a bank account in Portugal for the investment
  • Invest: transfers at least €500,000 (depending on financing options) to the fund
  • Apply for the visa: submit your golden visa application with proof of investment

Related article: Portugal Golden Visa Timeline: The Application Process Explained.

Summary

Portugal Golden Visa investment funds offer flexibility and a way to grow your money.

The fund option offers several benefits, including a tax-efficient vehicle for your money and added security. The CMVM and Bank of Portugal regulate these funds, giving investors added peace of mind.

While the minimum investment amount is typically €500,000, financing options are available. Some funds also provide upfront returns. These options allow you to take advantage of the scheme’s most popular investment route at a much lower cost.

Remember, if you are thinking of investing in a Portuguese fund, take the time to do your research and get expert advice.

Holborn Pass is a leader in investor visas. We have worked with clients from around the globe to help them and their family members secure a Portugal Golden Visa.

Start your golden visa journey with Holborn. Book a free consultation with one of our professional advisers to learn more.

Frequently asked questions

The Portuguese Securities Market Commission (CMVM) regulates all investment funds that qualify for the golden visa. This means all funds must meet and follow strict rules.

The country’s central bank also regulates funds, and the Portuguese Tax Authority carries out regular audits.

Golden visa fund investments offer several tax benefits. These funds provide tax-free profits and are exempt from capital gains tax (CGT).

You must hold your investment fund for at least five years. If you do not, you will no longer meet the criteria for the Portugal Golden Visa. After five years, you can withdraw your funds without impacting your residency status.

Most funds ensure they will not dissolve before the minimum number of years as part of the contract. However, choosing a reputable fund with a solid track record is essential to minimise risk. If the fund does dissolve, you could lose your residency status.

As of October 2023, real estate investments no longer qualify for the golden visa in Portugal. This change also extends to real estate investment funds.

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