The Golden Visa Portugal with investment funds represents an option for investors who wish to get a citizenship by investment in Portugal by making financial contributions to strategic sectors.
The article shows the procedures associated with obtaining the Golden Visa, which through this format combines migratory benefits with potential financial returns.
It also covers the investment requirements and the specifics of the legal support required, with all the stages of the process and the documents needed at each stage.
Don’t forget to read about the VIDA Fund, which is an example of a fund that can be used to obtain a visa.
Follow the content to the end, for access to an up-to-date and complete guide on what is an investment fund eligible for the Golden Visa Portugal Program, as well as understanding how to acquire dual citizenship through it.
Happy reading.
What is the ARI – Golden Visa Program in Portugal?
The ARI Program (Autorização de Residência para Investimento), popularly known as the Golden Visa, is a Portuguese government program that grants residence permits to citizens from outside the European Union get a citizenship by investment with the requirement to make significant investments in the country.
The aim of the program is to attract financial contributions to Portugal from outside the country, stimulating the economy and even creating jobs.
What are the investment options?
Today, in 2024, the ARI Program offers 5 types of investment. These are established by different requirements and specific amounts:
Investment Funds or Venture Capital Funds
A single minimum investment of €500,000 is required in qualified funds, which invest in sectors such as tourism, technology, infrastructure, among others.
The Golden Visa Portugal with investment funds is currently the modality most requested by the Portuguese government.
Support for Portuguese companies
The investment amount is also €500,000 for the creation of at least 5 jobs in already established companies, for a period of 3 years.
Subsidizing scientific or technological research
A minimum investment of €500,000 in research activities carried out by public or private institutions integrated into the Portuguese scientific and technological system.
Investment in culture or national heritage
A minimum investment of €250,000 in projects for artistic production, recovery or maintenance of national cultural heritage.
Job creation
In this modality it is necessary to guarantee the creation of at least 10 jobs, with the possibility of this number being reduced to 8 jobs if the investment is made in areas of low population density in Portugal.
What are Golden Visa Investment Funds in Portugal?
Funds are investment arrangements created by entities such as fund managers or investment companies, following Portuguese regulatory standards and often supervised by the Portuguese Securities Market Commission (CMVM). They allow foreigners who are not resident in the EU to apply for the Golden Visa Program and thus obtain a residence permit.
This investment option was created by an amendment to Law No. 102/2017, with the change of values in Decree-Law No. 14/2021.
Next, read the section of the law that determines the rules of application (article 3, vii of Decree-Law no. 14/2021):
“Transfer of capital in an amount equal to or greater than (euro) 500,000, intended for the acquisition of units in investment funds or venture capital funds aimed at the capitalization of companies, which are constituted under Portuguese law, whose maturity, at the time of the investment, is at least five years and at least 60% of the value of the investments is made in commercial companies based in national territory;”
Thus, the funds are structured to invest in specific assets, such as hotels, tourism in general, companies, startups, etc.
Therefore, foreign investors can participate by purchasing shares, and in return, they have the possibility of obtaining a residence visa in Portugal, as long as they meet the requirements established by the Golden Visa program, such as the minimum investment amount and maintaining the investment for a period of 5 years.
In addition, according to their definitions, both Private Equity and Venture Capitals are eligible as investment funds in Portugal for the Golden Visa.
It’s also important to note that the investment can be made in just one company or you can put together a diversified portfolio, but the sum must reach the required 500,000 euros in funds based in Portugal.
How does the Golden Visa Portugal with investment funds work in practice?
Each fund defines an investment strategy, targeting the types of assets it intends to invest in, such as hotels, companies or development projects.
The professional management of the fund is carried out by qualified professionals who are responsible for identifying investment opportunities, executing transactions and monitoring the assets.
Once foreign investors contribute to the funds and meet the additional requirements of the Golden Visa program, such as a criminal background check, opening an account in Portugal, acquiring a NIF (tax payer number), paying government fees, etc., they can apply for a residence visa in Portugal.
Maintaining the investment for a minimum period of 5 years, as stipulated by the program’s regulations, is generally required to ensure compliance with the Golden Visa’s objectives. In addition to the benefits of the investor visa, members can earn financial returns based on the fund’s performance, including dividends or profits when assets appreciate over time.
Who can invest in Golden Visa Portugal with investment funds?
To qualify for the investment program, you must have significant financial resources and meet certain criteria.
You must be a citizen outside the European Union, the European Economic Area or not be a Swiss citizen, as well as having a criminal record with no records.
In addition, a minimum investment of €500,000 in funds approved by the Portuguese government is required to qualify.
Investors must also undergo compliance checks to ensure compliance with legal and tax requirements. In certain cases, it is necessary to present documentation proving the lawful origin of the funds and the availability of adequate capital.
What are the main benefits of investing in Golden Visa funds?
The Golden Visa Portugal route with investment funds has advantages that other types of investment don’t have, such as: attractive rates, tax efficiency, potential gains and the peace of mind of betting on a type of investment audited by the competent Portuguese bodies. See below for each of these advantages.
Safe investment
A fund registered in Portugal is regulated by several authorities: the Portuguese Securities Market Commission (CMVM), the Bank of Portugal and the fund management company.
In addition, the Portuguese tax authorities also audit the fund, ensuring compliance with Portuguese legislation, tax rules and the investment plan approved by investors.
Tax efficiency
Depending on the tax structure of the fund and the investor, an investment in funds can bring significant tax benefits.
In some cases, there may be an exemption from withholding tax on the fund’s income, especially if the investors are not tax residents in Portugal.
In comparison, income from property rentals was subject to a flat rate of 28% in Portugal.
Diversification
Portuguese legislation requires funds to maintain a certain level of diversification.
There are limits to the percentage that each asset or investment can represent in the fund’s portfolio, providing a greater diversity of investments and, consequently, a reduction in risk for investors.
Potential gains
Depending on the focus of the fund, annual returns and capital appreciation can be significantly higher than in other investment types in the Golden Visa program.
Delegation of management
Owning shares in an investment fund is a simpler way of investing, as management is fully delegated to the fund managers. For some investors, this is an advantage because there is less need for direct supervision.
How much tax is paid on Golden Visa Portugal investment funds?
Taxation for the investor depends on whether or not they are resident in Portugal:
Non-resident investors
If you live outside Portugal and have no tax residence in the country, there is no withholding tax on the dividends you receive from your investment in the fund. In other words, the profit you make comes back without any Portuguese tax deductions.
However, this rule does not apply if investments are made through tax havens.
Once again, you don’t have to be a tax resident in Portugal or move to Portugal to invest in Golden Visa Portugal with investment funds.
Resident investors
If you decide to become a tax resident, there will be a 10% withholding tax on the profits you receive from your investments.
What does this mean?
Favorable taxation for non-residents means that you can maximize your returns if you haven’t moved to Portugal yet.
On the other hand, when residing in Portugal, income tax is relatively low (10%), which still represents a comparative advantage by international standards.
What are the costs involved in acquiring the Golden Visa with investment funds?
The fees required to analyze the application and issue the Residence Permit under the Residence Permit for Investment Activity (ARI) program are as follows:
- Receipt and analysis of the application for the granting or renewal of a residence permit for investment activity: €773.74.
- Issuing the first residence permit for investment activity, in accordance with the same article, has a fee of €7,730.11.
- Renewal of the residence permit for investment activity, according to article 90-A, requires a fee of €3,865.79.
What are the stages of the process?
Now that you’ve come this far, you should have understood what the Golden Visa Portugal with investment funds is, its main characteristics, modalities, etc. So, here are the steps in the process of obtaining the golden visa for investors.
Stage 1: choosing the investment
First and foremost, the most important step in obtaining the Golden Visa Portugal for investment funds is to choose the type of investment.
Choose the one that best suits your investor profile and your financial objectives.
You also need to choose a fund that is eligible for the Portuguese government’s program and has the necessary certifications.
Stage 2: Gather all the necessary documents
You need to gather all the required documents, both for the main applicant and for all their dependents, if any.
This stage can be a little tiring, as it involves a series of processes, such as translations, notarization, authentication and certification of the documents.
Stage 3: Getting a NIF and opening a bank account in Portugal
Portugal requires the main applicant to make the investment from a bank account in a Portuguese bank.
It is therefore necessary to have an account with a local bank.
In addition, it is mandatory to have a tax payer number, known as a NIF, in order to open the bank account.
Fortunately, both obtaining a NIF and opening a bank account in Portugal are relatively simple processes.
Stage 4: Make the investment
Once you’ve decided on the type of investment you want, it’s time to complete the transaction in Portugal. This may include transferring funds, signing documents and other steps necessary to finalize the contributions.
Stage 5: Submit the pre-application
Once the qualifying investment has been completed and all the documents are ready, the pre-application must be submitted online to AIMA.
Under normal conditions, the pre-application takes around five weeks to process.
Stage 6: Schedule and attend an appointment at AIMA
After reviewing your pre-application, AIMA will provide you with a list of available dates for the biometric appointment.
On the date chosen, the applicant and their dependents must go to the AIMA office to register their fingerprints and make the process official.
Stage 7: Receiving the Golden Visa and renewal
If everything goes according to plan, the investor and their family will receive their Golden Visa residence cards.
Each card is valid for two years and will need to be renewed at the end of this period to maintain the residence permit.
Under normal conditions, it takes around four months from the time of the biometric consultation to receiving the cards.
Stage 8: Becoming a Portuguese citizen
After renewing the initial Golden Visa twice and completing a total of five years, you can apply for permanent residence or citizenship in Portugal.
The process of applying for citizenship can take between six months and a year. Once you have obtained permanent residency or citizenship, you no longer need to keep your investment in Portugal.
Which documentation is required for the application?
The submission of documents to apply for the Golden Visa by investment funds in Portugal follows a few stages: applying for a NIF, opening a bank account, investing in the fund and submitting the Golden Visa process.
Let’s get to them:
Stage 1: Applying for a Portuguese Tax Payer Number
To begin the procedure for obtaining a Golden Visa, the first stage involves applying for a Portuguese fiscal number. To do this, you need to provide the following documents:
. Copy of your passport; . Recent proof of address, which can be a utility bill such as water or electricity, less than 3 months old.
Stage 2: Opening a Bank Account
The documents required for this step include:
. Copy of passport and proof of address; . Proof of profession, which can be a company statement indicating the position held by the applicant; . The last three bank statements to check the current financial situation; . Proof of tax residency; . Annual income statement, to demonstrate financial capacity; . Documents for the STAG fund manager’s Know Your Client (KYC) process, which will be sent later to complete.
Stage 3: Fund Investment Procedure
In the third stage, the investment in the fund is formalized by submitting:
. The investor’s CV; . Power of attorney on behalf of the legal counsel representing the investor in the process; . Proof of profession and annual income statement, similar to those requested when opening the account; . Recent bank statements or a statement from the bank confirming that the investor has the necessary amount to invest in the fund; . Documents required for the KYC of the chosen bank, which will be sent to complete the process.
Stage 4: Submission of the Golden Visa Process
The final stage involves submitting the Golden Visa process, which includes criminal record and civil status documentation, as follows:
. Criminal record certificate with the Hague apostille for the main applicant; . For spouses, in addition to the criminal record certificate, a marriage certificate is required, both with the Hague apostille; . For children over the age of 16, the birth registration and criminal record certificate, also apostilled, are required; . For children over the age of 18, in addition to the above documents, a school or university registration certificate with the Hague apostille is required and, if applicable, a bachelor’s certificate if the marital status is not specified in the birth registration.
Remember that documents issued in USA must be apostilled. If any document is written in another language, you will need to arrange for an official translation into Portuguese.
Why is the Golden Visa still gaining popularity?
The option of obtaining the Golden Visa Portugal with investment funds has become popular among investors, especially after the changes made to the program in January 2024.
Under the new rule, the modalities of investing in real estate and transferring capital were eliminated from the program. Until then, investing in real estate was the main way to get Golden Visa.
Today, investment funds are the “apple of the eye” of the world market, because of all the alternatives available, they tend to be the most profitable.
Getting to know the VIDA Fund: eligible for the Golden Visa Portugal
The VIDA Fund stands out in the venture capital market by offering exclusive investment opportunities in sustainable hotel projects in Portugal.
It is a pioneering fund that promotes the transformation of underused properties into luxury developments, generating not only a financial return for shareholders, but also contributing to sustainable development.
In addition, it offers investors the chance to take part in the Golden Visa Portugal Program, opening the way to obtaining European citizenship.
VIDA is betting on the growth of tourism in Portugal by offering assets in the management of the national hotel industry, given that the country has consistently been recognized as one of the most desirable destinations for luxury travel, and for good reason.
With its rich history, exceptional cuisine, stunning landscapes and the warm hospitality of its people, the country has won over discerning travelers from all over the world.
What opportunities does the VIDA Fund offer?
The Portuguese market is mostly made up of family businesses, which often have fragmented and insufficient management due to a lack of specialist knowledge.
The unique dynamics of the market have resulted in the absence of significant institutional players, thus creating ample space for local entities such as VIDA, which have specialized knowledge and local relationships to capitalize on untapped opportunities.
The Fund is managed by STAG Fund Management SCR S.A., has a fundraising target of €50 million and focuses exclusively on assets in the Portuguese hospitality market, with an expected investment horizon of 7 years.
Investors can participate through two classes of shares: Class A, with a minimum investment of €200,000, and Class B, with a minimum initial investment of €1,000,000, reduced to €500,000 for investors seeking a Golden Visa.
The fund aims for a return on investment (IRR) of more than 10% per year, and it is expected that the capital invested could double by the end of the fund’s cycle.
But it is also important for investors to be aware of the risks associated with this type of investment.
Although the VIDA Fund aims for high returns and significant capital growth, market factors may influence the final results.
What projects is VIDA developing in Portugal?
The assets are prepared for the strategy of robust investment in the hospitality market.
Check out the key points that permeate the company’s focus:
- Exclusive off-market network – The team secures discounted assets through its network of exclusive off-market connections, guaranteeing the best local opportunities.
- Vertical integration – The company has substantial control over its operations, which leads to superior risk management than asset managers who rely on third-party operators.
- Hands-on process – A group of experienced builders and entrepreneurs take charge of the transformation process, implementing physical interventions and refurbishments as required. . Experienced operations team – Focuses on optimizing margins by reducing costs, while increasing non-core revenues.
On top of these strategies, the Fund continues to expand its investment portfolio in the sustainable hospitality sector in Portugal.
VIDA includes two outstanding assets in its investment portfolio, focused on revitalizing hotel properties in strategic locations in Portugal, transforming them into high-end destinations for the luxury market.
Portfolio Asset 1 – Villas d’Água
Villas d’Água in the Algarve – VIDA Fund
Located in the Algarve, one of Europe’s most exclusive destinations, Villas d’Água is a beachfront property that was acquired before a bankruptcy auction, guaranteeing an advantageous purchase price. The development, previously poorly managed by a family business, is being transformed into a complex of 1 to 2 bedroom apartments with high standard services.
The refurbishment includes the addition of new amenities such as a restaurant, bar, spa and gym, as well as a strong wellness and music program, in line with the growing surf culture in the region.
Located just 12km from Vilamoura, this property offers unique privacy amidst lush pine forests and direct access to sandy beaches surrounded by red cliffs.
Portfolio 2 Assets – Riviera
Riviera in Porto – Golden Visa Portugal with investment funds
The Riviera, situated in the historic and cultural area of Gaia in Porto, represents an investment in an old family hotel that is being restructured into a vibrant lifestyle concept.
Located next to the river, the hotel offers spectacular views of Porto and is strategically positioned close to the World of Wine (WOW), a project that celebrates Portuguese wine and heritage.
The intervention included the expansion and modernization of the facilities, transforming it into one of the few hotels in the area with a spa, two restaurants and a rooftop bar with swimming pool.
The replacement of an obsolete brand with a modern and attractive hotel concept, in addition to the privileged location and the acquisition of the asset at a reduced price during the pandemic, solidify the potential value of this investment.
Advantages of the VIDA for Golden Visa investment fund
The differentials of the VIDA investment fund for the Golden Visa are structured around a series of practices and specializations aimed not only at financial returns, but also at guaranteeing a future with quality of life for its investors.
Specialization in the hospitality sector
The VIDA Fund focuses exclusively on the hospitality sector in Portugal, using its in-depth knowledge of the market to identify and take advantage of lucrative investment opportunities.
This specialization allows the fund to offer specific insights and a competitive edge in the market, which can result in more effective and profitable investments.
Strict regulatory compliance
Integrity and transparency are fundamental to the VIDA Fund. The fund is committed to adhering to the most demanding regulatory standards, providing investors that their investments are managed within an ethical, legal and transparent framework.
Focus on the investor
At VIDA Fund, the investor is the main focus.
Through transparent communication and high-quality customer service, the fund creates an environment in which investors feel valued and well-informed.
Qualified management team
The team that manages the VIDA Fund is made up of highly experienced professionals, including investment strategists and hotel and tourism specialists, working together to ensure that the fund maintains its leading position in the market.
The team’s expertise and passion are essential to the fund’s continued success and investor satisfaction.
Commitment to sustainability
Commitment to sustainable practices and environmental management involves all VIDA Fund projects.
This is an initiative that seeks to positively impact the world, promoting not only profit, but also a future with a better quality of life.
Raised and managed funds totaling more than €2 billion in investments in Europe, the USA, Latin America and Africa.
Robust pipeline
Expanded an international group of hotels, increasing its portfolio to over 150 hotels in more than 20 countries.
Multidisciplinary team
It has a diverse and experienced team in hospitality, sustainability, Golden Visa, and legal, financial and tax aspects.
Commitment to sustainability
It has invested more than €900 million in iconic sustainability projects such as Nomad Bay, Palácio de Comércio do Algarve and Six Senses Douro Valley.
Premium accessibility
Offers professional management and access to premium amenities, maximizing returns on investment.
How does the VIDA Fund help with all the stages of acquiring the Golden Visa Portugal?
The VIDA Fund provides a complete solution that integrates investment and legal assistance, simplifying the process of obtaining the Golden Visa Portugal with investment funds and subsequent Portuguese citizenship.
Investors have access to a comprehensive service that includes the selection of investments by the financial team and the management of all legal issues related to the Golden Visa by the fund’s legal experts.
This integrated model saves time and money, eliminating the need to hire separate services and reducing complications.
After the five-year period, the minimum required by the program, the Fund continues to support investors in the transition to Portuguese citizenship, guaranteeing ongoing support until dual citizenship is obtained.
