A Comprehensive Guide to the Portugal Golden Visa via Investment Funds
Portugal’s Golden Visa program is one of the most sought-after residency-by-investment options in Europe. Designed to attract international investors, this program allows non-EU citizens to secure residency in Portugal by making qualifying investments. Among the various investment options, investing in a Portuguese investment fund is gaining significant popularity due to its flexibility and potential financial returns. Here, we outline the basic requirements, advantages, application process, and associated costs for securing a Portugal Golden Visa through fund investment.
Basic Requirements for Portugal Golden Visa via Fund Investment
To qualify for a Portugal Golden Visa through investment funds, applicants must meet the following requirements:
- Minimum Investment:
- Invest at least €500,000 in a qualifying Portuguese investment fund.
- Fund Eligibility:
- The fund must be registered with the Portuguese Securities Market Commission (CMVM).
- It should primarily focus on Portuguese companies, often in real estate, technology, or other high-growth sectors.
- Hold Period:
- Maintain the investment for a minimum of five years.
- Documentation:
- Valid passport and proof of legal residence.
- Proof of investment in the qualifying fund.
- Criminal record certificate from the country of origin or residence.
- Proof of health insurance valid in Portugal.
Advantages of Investing in Funds for the Golden Visa
- Lower Involvement in Real Estate:
- Unlike property purchases, fund investments require less direct management, making it ideal for remote investors.
- Diversification:
- Funds offer diversified portfolios across various industries, potentially lowering investment risks.
- Higher Liquidity:
- Funds are often more liquid compared to real estate, allowing for easier exit strategies after the required holding period.
- Potential Returns:
- Investment funds are professionally managed, often providing attractive financial returns.
- Ease of Compliance:
- No need for additional costs such as property maintenance or taxes related to ownership.
Application Process for Portugal Golden Visa
- Choose a Qualifying Fund:
- Research and select a CMVM-approved fund that aligns with your investment goals.
- Obtain a Tax Identification Number (NIF):
- Secure an NIF, which is essential for conducting financial transactions in Portugal.
- Open a Portuguese Bank Account:
- Transfer the investment amount into a local account.
- Make the Investment:
- Complete the €500,000 investment in the selected fund.
- Prepare Documentation:
- Gather and notarize all required documents, including proof of investment and criminal record certificates.
- Submit the Application:
- Apply online through the Portuguese Immigration and Borders Service (SEF).
- Biometric Appointment:
- Attend a biometric data collection appointment at a SEF office.
- Approval and Residency Permit Issuance:
- Upon approval, receive a renewable residency permit valid for two years.
Costs and Government Fees Involved
- Investment Amount:
- Minimum of €500,000 in a qualifying fund.
- Government Fees:
- Application Processing Fee: Approximately €605 per applicant.
- Residence Permit Issuance Fee: Around €6,045 per applicant.
- Legal and Administrative Costs:
- Legal Assistance: Fees range from €5,000 to €8,000 for a single applicant.
- Translation and Notarization: Costs vary depending on the complexity of the documents.
- Fund-Related Fees:
- Subscription Fee: Up to 7.5% of the investment amount.
- Annual Management Fee: Typically 0.5% to 3% of the invested capital.
- Additional Costs:
- Health Insurance: Premiums starting at approximately €400 per person annually.
- Miscellaneous Fees: These include costs for obtaining the NIF and opening a bank account.
Summary of Costs
Expense | Approximate Cost | Notes |
Investment Amount | €500,000 | Direct investment in a qualifying fund. |
Application Fee | €605 per applicant | One-time fee for initial processing. |
Permit Issuance Fee | €6,045 per applicant | Paid upon approval of the residency permit. |
Legal Assistance | €5,000 to €8,000 | Varies based on the law firm’s services. |
Fund Subscription Fee | Up to 7.5% of investment | Charged by the fund. |
Annual Fund Fee | 0.5% to 3% of investment | Ongoing fund management cost. |
Health Insurance | €400+ per person annually | Required for all applicants. |
Translation/Notarization | Varies | Document preparation costs. |
Conclusion
Investing in Portuguese funds under the Golden Visa program offers a streamlined and efficient pathway to residency in Portugal. With professional fund management, potential financial returns, and fewer obligations compared to real estate, this option is increasingly favored by global investors. However, it’s essential to understand the associated costs and comply with all legal requirements to ensure a smooth application process.
If you’re considering applying for the Portugal Golden Visa via investment funds, we can provide expert guidance to help you navigate the complexities. Contact us for tailored advice and assistance on your journey to Portuguese residency.
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The author of this article is Mr. Prashant Ajmera, an Indian immigration lawyer and Canadian citizen. He is the founder of Ajmera Law Group and the author of two books, “Millionaires On The Book” and “How to Plan for Your Child’s Foreign Education.” Over the past 30 years, he has assisted and advised over 30,000 students and families on planning their foreign education and settlement. He regularly speaks at various forums on this subject.