For investors globally looking for residency in Europe, Portugal has been a fan favorite. And facilitating all of that is the infamous Portugal Golden Visa.
Imagine:
- a) Securing the right to live, work, and study in Portugal
- b) AND enjoying visa-free travel across the Schengen Zone!
There’s no surprise why a lot of investors today have started exploring investment funds in addition to just real estate routes to gain residency in Portugal.
If you are considering the Portugal Golden Visa by investment, choosing the right investment fund can be a crucial decision. Here’s what you need to know before getting on the hype train!
Why Consider the Portugal Golden Visa via Investment Funds?
- i) Easier to Get Started: Investment funds usually require a minimum investment of €500,000, making them a strong alternative to high-end real estate.
- ii) No Maintenance Problems: Investing in a fund eliminates the need to deal with maintenance, renters, and property taxes, in contrast to owning real estate. The management aspect is handled for you after you invest your funds.
iii) Great Growth Potential: These funds are managed by experts who make thoughtful investments in sectors like energy, healthcare, and technology. They can produce steady long-term returns with a carefully thought-out plan.
- iv) A Quicker Process: Purchasing real estate requires months of documentation, discussions, and approvals. Investing in a fund is much easier and faster, allowing you to start making money sooner.
- v) Tax Benefits: Investment funds are a cost-effective alternative to traditional real estate investments as they are subject to less harsher tax regimes.
Factors to consider when choosing an Investment Fund for the Portugal Golden Visa.
- Sort of Fund
There are plenty of investment fund options out there, so it’s important to choose one that aligns with your goals.
– Private Equity Funds invest in both startups and established companies with high growth potential.
– Venture Capital Funds focus specifically on startups that have the potential for big financial returns.
– Real Estate Funds put money into residential and commercial properties.
– Infrastructure Funds (i.e. large-scale projects like energy, transportation, and technology).
- The Performance History of the Fund Manager
A strong performance history is the best assistance a fund manager can provide. Tried-and-tested strategy to reduce risk and increase possible returns.
- Liquidity and Exit Options
Unlike real estate, which requires the sale of a property, investment funds have planned exit strategies. Check the withdrawal options and how long your investment must remain locked.
- Matters Concerning Taxes
One of Portugal’s many tax benefits for investors is the Non-Habitual Resident (NHR) tax regime. To better understand the specifics, consult a financial specialist.
Step-by-Step Guide to Applying for the Portugal Golden Visa via Investment Funds
- Choose an Eligible Fund
- Research funds that qualify under the Portugal Golden Visa by investment program.
- Consult with a legal or financial expert to analyze fund performance.
- Open a Portuguese Bank Account & Tax Number (NIF)
- You will need a NIF (Número de Identificação Fiscal) to make the investment.
- A local bank account is required to complete the transaction.
- Transfer a minimum of €500,000 into the selected fund.
- Obtain proof of investment from the fund manager.
- Prepare & Submit the Application
- Collect required documents (passport, proof of investment, NIF, bank statements, etc.).
- Submit the application through the Portuguese Immigration and Borders Service (SEF).
- Complete Biometric Appointment
- Once your application is pre-approved, you will need to visit Portugal for biometric submission.
- Receive Residency Approval.
- After approval, you receive your Portugal Golden Visa, granting residency for an initial 2 years, with renewal every 2 years.
- Maintain Investment & Residency Requirements:
– Maintain the investment for at least 5 years.
– Spend at least 7 days per year in Portugal to meet residency requirements.
– Apply for Citizenship (Optional) - After 5 years, you may be eligible for Portuguese citizenship, allowing you to hold an EU passport.
Why Now Is the Best Time to Apply?
Portugal has made several changes to its Portugal Golden Visa by investment program, including phasing out real estate as an option in urban areas. With these shifts, investment funds are now the most efficient route.
How FRR Immigration Can Help
We understand that the Portugal Golden Visa application process can get overwhelming. But worry not, we at FRR Immigration, are here to make the entire thing easy and stress-free.
Be it
– Looking for the right investment fund
– Or Help with the boring paperwork.
We will be right besides you on every step of the way!
Keeping in mind the risk taking capacity and the specific goals that you want to achieve, we will make sure there are no unpleasant surprises.
Ready to achieve your dream of European residency through the Portugal Golden Visa? Reach out to FRR Immigration today.
