Capital transfer of the amount of 500 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation, whose maturity should be at least, of five years. At least, 60% of the investments need to be realized in commercial companies with headquarter in Portuguese territory.
The Portuguese Investment Funds
There are a number of benefits to investing in private equity funds to be eligible for the Portuguese Golden Visa.
The Portuguese Golden Visa Investment Funds are professionally managed by experts on each specific sector.
You can obtain Portuguese residency from a minimum investment of 500 thousand Euros into a officially registered investment fund.
Venture capital funds are a tax-efficient vehicle — dividends and capital gains returned to investors may be tax-exempt.
Depending on the Golden Visa Investment Fund, they will offer a minimum return hurdle-rate usually between 1,5% and 6%, were managers will only be compensated if the fund performance is above a certain percentage.
Some Investment funds have the support of the Portuguese Government through subsidies or financed by the IFD.
The Portuguese Golden Visa Investment Funds are regulated and must comply with the rules stipulated by the Portuguese Securities Market Commission (CMVM). This means that fund managers are regularly audited by third parties.
To comply with the Portuguese Golden Visa Investment Funds legal requirements they usually have a maturity of at least 6 years. The Golden Visa Investment Fund is also obliged to invest at least 60% into companies which have their head office in Portugal.
An advantage of the Golden Visa Investment Fund is that compared to real estate you will not pay acquisition tax (around 6%) neither stump duty tax (0,8%) of the property value. By deciding to apply for the Portuguese Golden Visa through the investment fund will save you a lot of time and legal fees compared to real estate acquisitions.
Advantages of the Golden Visa Investment Fund application:
1. Possibility to invest directly into the Real Estate development market in Portugal.
2. Easiest and quickest way to be eligible for Portuguese Gold Visa, starting at 500 thousand euros.
3. All investments will be audited and evaluated by certified and independent companies.
4. Lower value that enables solid and good profitability investments in the Portuguese capital.
5. Assets diversification - it won’t exceed 1/3 of the portfolio focused on more than one investment.
6. Tax exempt on the withdraw for non resident and 10% for residents.
STEPS for the Golden Visa Investment Fund application:
1. The Management company will receive from the investor a KYC Form; Subscription Form and personal documents.
2. The Golden Visa investor will obtain his Portuguese tax identification number (NIF) and open a Portuguese bank account (checking and securities account).
3. The investor will transfer the money from his foreign account to his Portuguese bank account.
4. The investor orders the bank transfer to the Funds bank account.
5. The Management company issues a declaration necessary for the Golden Visa application and the Portuguese bank issues two declarations (money transfer overseas and certificate of holding the Participation units (shares).
Note: "US Persons" (American citizenship or tax residents in the US) need to open their Portuguese bank account with a FATCA compliant bank, example: Bison Bank. Banco Atlântico. Banco Carregosa.
Documents for the Golden Visa Investment Fund application:
1. Declaration of the Portuguese bank, attesting the effective transfer of the amount equal to or above the legally required.
2. Supporting document attesting the ownership of the units of investment from the Portuguese bank.
3. Declaration issued by the investment fund managers, attesting the feasibility of the capitalization plan, the maturity of, at least, five years, and the application of at least 60% of the investment in companies with head office in Portugal.