The Golden Visa Portugal program is one of the most sought after investment programs globally. Investors are guaranteed European Union residency and can request citizenship at the end of the 5 year process in return for investing in Portugal’s vibrant economy. The benefits of the program include Schengen free travel throughout the European Union, a 5 year program to citizenship and a low investment requirement.
Investors have many options, including real estate purchases and donations to the arts, but the Golden Visa Portugal Investment Fund option is rapidly becoming the most popular option for savvy investors. Here are some of the reasons to invest in a Golden Visa Portugal Investment Fund.
Related article: What are the tax benefits for a Golden Visa in Portugal
Golden Visa Portugal: 7 reasons why you should get it through an investment fund
1. It’s quicker
In comparison to other avenues, the Golden Visa Portugal Investment Fund option offers a much quicker way to start your golden visa application. Whereas executing the purchase of real estate or a business can take up to two months (from finding a suitable property to finalising the administrative tasks), a professionally managed investment fund can supply you with the necessary paperwork to start your application in just a few days.
2. It’s easier to capitalise on your investment
When your permanent residency process is finished and you no longer need to keep your investment, the Golden Visa Portugal Investment Fund can offer you a speedy exit. Most funds designed for the use of a Golden Visa Portugal application will mature after 5 to 6 years, making it a straightforward process to withdraw your capital. Their projected returns are usually aligned carefully with past fund performance too, meaning that knowledgeable investors will have a clear idea of what to expect. On the other hand, investing in a business or real estate can require months of effort before a return is realised. Even then, volatile and declining market conditions can make it hard to secure a good return.
3. A transparent investment
To pursue the Golden Visa Portugal Investment Fund option, you need to invest €350,000 in a qualified investment fund. On top of that, you will probably be asked to pay a transparent fixed management fee or commission. That’s it as far as costs go, making it an entirely predictable process. Real estate investment on the other hand has hidden costs related to finding the property, registering the sale, paying taxes, furnishing a property and more. When all the costs are taken into account, the eventual investment amount could be as much as 30% higher than anticipated.
Related article: Golden Visa Portugal: What is a Qualified Investment Fund
4. A familiar method of investing
The rules underpinning investment funds will be known to most investors ahead of time. What is normal for a Portuguese investment fund will for the most part be the same as in any other country in the world. This means that investors can be secure in knowing they are investing their money in a system they understand well. An alternative option like investing in the arts or science on the other hand could represent an unfamiliar and time-consuming process without prior local knowledge.
5. It’s a more diversified investment
Investing a large amount of capital in a single business or piece of real estate can represent a real risk. Should something happen in the market, it could leave you entirely exposed and facing an uncertain return. By investing in a well managed Golden Visa Portugal Investment Fund on the other hand, you can spread your capital over different units and perhaps industries, which in turn increases the likelihood of a positive capitalisation.
6. It’s highly tax efficient
This guide explains the full tax benefits of the Golden Visa Portugal Investment Fund, but the short story is that Golden Visa Portugal holders and non-habitual residency will most likely be exempt from paying capital gains tax, as well as taxes on dividends. Since real estate taxes vary wildly across the country, this makes the Golden Visa Portugal Fund option highly tax efficient.
7. Approved and regulated by the CMVM
The CMVM – Portuguese Securities Market Commission – is the Portuguese authority that regulates investment funds.
With over 40 years of experience in the Portuguese market, Lince Capital Team can help Golden Visa Portugal applicants to invest in the right qualified investment funds to secure all the benefits associated with the program.
As experts in securing Portugal Golden Visas through the Investment Fund option, we can carefully navigate you through the process. Depending on your investor profile, 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.