Invest in a property or in a fund in Portugal: two ways to obtain your Golden Visa

Invest in a property and obtain a Golden Visa Portugal allows the holder free movement meaning that one can live, work, and study in Portugal and anywhere else within the European Union, European Economic Area, Switzerland and the United Kingdom.

For a minimum investment of €500,000 the Golden Visa Portugal has the following benefits:

  • Travel visa-free to 186 countries
  • Includes family members
  • Renewable every two years with no residency requirements
  • Citizenship is possible in 5 years.

Golden Visa Portugal real estate purchase

The Golden Visa Portugal real estate option is perhaps the most popular way to get residency in Portugal. This is because Portugal is seen as a prime destination among property investors, with a flourishing real estate market, high rental yields, and booming tourism industry.

Many expats invest in a property in Portugal for tourism purposes, or to serve as a second home or a retirement destination. You can invest in newly-built properties in thriving Lisbon or Porto. However, the Portuguese government would like to transfer the focus of real estate investments from the high-density areas like Lisbon, Porto, the Algrave, and the high-density coastal towns like Setubal and the Silver Coast to low-density areas like the Azores, Madeira and the cities and towns in the interior of Portugal.

  • Invest in a property of €350,000 in a low-density area requiring rehabilitation or located in urban re-generation areas. The property for sale must at least be more than thirty years old and undergoing renovation.
  • Invest in a property of €500,00 for all other properties in Portugal.

Golden Visa Portugal capital investment options

Investing in private equity funds or Golden Visa Portugal venture capital funds is a good option for acquiring residency in Portugal. The funds are managed by fund managers who are accredited by Portugal’s regulatory body, the Portuguese Securities Market Commission or CMVM. Your dedicated fund manager ensures that the Golden Visa Portugal fund investments are appropriately invested in areas like energy, industry, healthcare, technology; in start-ups or medium-sized projects with optimal growth potential.

These are the possible investment options:

  • A capital transfer of at least €1.5 million.
  • A €500,000 investment into private equity or venture capital funds providing capital to specified companies .
  • A €500,000 investment in companies that are scientific or technological in nature.
  • A €500,000 business investment in the form of either the purchase of shares in a Portuguese company or setting up a company in sectors like energy, industry, technology, and real estate.
  • Generate at least five permanent jobs for at least three years for Portuguese citizens.

Benefits of capital investments Portugal

  • Dividends and capital gains returned to investors may be tax-exempt for venture capital funds.
  • Some funds have a minimum return hurdle-rate.
  • A handful of funds are supported by the Portuguese government through subsidies or financed by the IFD (Instituição Financiera de Desenvolvimiento).
  • The funds are regulated and they comply with the Portuguese Securities Market Commission rules.
  • Opportunity to invest directly in real estate development in Portugal.

Fund investment vs real estate purchase

  • Diversification of investment vs one or two properties.
  • Tax advantages on fund earnings vs withholding taxes.
  • Low acquisition fees vs IMT tax and stamp duty.
  • Professional fund managers vs yourself or a costly third property manager.
  • Save time and legal fees vs requirements from property holder.
  • Portuguese funds are considered “risk funds” vs stable real estate market.
  • Funds do not guarantee the invested return or a stable yield vs guaranteed rent.
  • Funds need to held for at least six years vs no minimum term for real estate investment.

It must be noted that you only have until the end of 2021 to enjoy the minimum investment of €350,000 for capital funds.

Speak to one of our Golden Visa Portugal Consultants so we can understand your objectives and help you move forward. We have an experienced, hands-on team, who help clients from around the world acquire real estate or diversify their investment portfolio with safe and robust investments.