The Golden Visa Portugal route that requires the smallest investment while working on the fastest timeline is undoubtedly the investment in a private equity fund option. Locally known as “fundos de capital de risco”, these are investment funds you can subscribe to which qualify you for EU residency and passport in just 5 years. While it is possible to complete the initial application in just a few days with this route (as long as you already have a bank account in Portugal and a tax number), the Golden Visa Portugal has special rules and criteria that you should be aware of before starting this journey. Our Golden Visa Portugal guide shows you the rules for investment in private equity funds to secure your Golden Visa.
How do I qualify for the Golden Visa Portugal program?
In order to apply to the Golden Visa Portugal program through the private equity fund route, it is important to be able to qualify for the program in the first place. In this instance the rules are quite clear:
- You need to be over 18
- You need to be a non-eu resident
- You need to have a clean criminal record
- You must possess the required funds to invest
Related article: Golden Visa Portugal Fund: What is it
How much do I need to invest?
There are also rules on the amount of money that you must invest. To start the process, you need to invest at least €350,000 in a fund and then maintain that investment for the 5 Years, (after January 1st 2022 the minimum investment changes to €500,000).
What kind of funds can I invest in?
Unfortunately, it’s not possible to simply invest in any fund based in Portugal. The Golden Visa Portugal program stipulates that qualifying private equity funds need to meet 3 key criteria:
- The Portuguese Securities Market Commission (CMVM) need to approve and regulate the fund;
- At least 60% of the investment units need to have their HQ based in Portugal;
- The minimum term of maturity has to be at least 5 years;
Even with these conditions, there are still a wide range of possible private equity fund options. So even if you’re investing primarily to secure a Golden Visa for Portugal, it is still possible to find a fund which can deliver a positive return.
Do I have to pay taxes or fees?
Our guide to the benefits of Golden Visa Portugal Investment options explains that if you become a non-habitual tax resident, your taxes on the fund income could be zero.
In terms of fees, as with most investment funds you can probably expect to pay a combination of a management fee (a small amount to cover the operational costs) and a performance fee (based on profits of the fund).
When can I make my exit?
The Golden Visa Portugal program requires you to keep your investment for the duration of the Golden Visa process. This means that realistically you can’t exit until at least after 5 years. After your 5 year process is complete you will have the option to continue with your status as a Golden Visa Portugal holder, in which case you will need to maintain your investment. Alternatively, if you want to convert to becoming either a permanent resident or citizen, you will be able to liquidate your fund.
Related article: Golden Visa Portugal: 5 reasons to choose the country
Which documents do I need to supply?
In order to start the Golden Visa Portugal process, you need to supply documents to SEF to prove you have made an investment. The exact documents you will need are:
- A declaration from your bank confirming your investment transfer;
- A declaration from the bank to say you own the units of investment;
- A declaration from your fund manager to confirm the maturity of the fund, that 60% of the investment units are headquartered in Portugal and with details on the capitalisation plan.
What Golden Visa changes will happen in 2022?
As of January 2022, there will be some wide ranging changes to the Golden Visa Portugal program. As far as the investment fund option is concerned, the only change is that the investment amount will rise from €350,000 to €500,000. However, anyone making the investment before January will be locked into the old rate.
Lince Capital is an ideal partner for anyone wishing to pursue an Investment Fund Golden Visa. Drawing on over 40 years of experience, Lince’s funds are diversified, have consistent potential yields and are fully managed, meaning that investors can take a hands-off approach with almost no risk. They create funds which are designed to make the process of applying for a Golden Visa as smooth as possible, while still offering funds that act more like traditional VC and PE funds. Lince has two standout funds to consider which are still open to subscription.
Lince Innovation Fund
The Lince Innovation Fund is focused on research and development projects across a wide range of sectors such as health, IT and industrial. The minimum investment in this fund is €100,000 and the term lasts for 8 years.
Navigator II is exclusively focused on real estate development projects in the high-value central Lisbon area. The minimum investment for this fund is €100,000 and the term lasts for 7 years.
If you would like more information about Golden Visas or would like to explore how to invest in Portugal, please feel free to contact us.