Portuguese investment funds

An investment fund is a collective investment vehicle that pools capital from multiple investors to purchase a diversified portfolio of assets. Professional fund managers handle these investments on behalf of participants, with each investor owning units or shares proportional to their contribution.

In Portugal, contributing to some investment funds of at least €500,000 grants the right to obtain a residence permit, the so-called Golden Visa. They operate as regular investment funds but must also meet strict criteria set by a special commission, Comissão do Mercado de Valores Mobiliários, or CMVM.

For Golden Visa applicants, the investment process works in three simple stages:

1. Subscription. An investor transfers a minimum of €500,000 to an eligible fund, obtains necessary documentation, and completes due diligence requirements.

2. Management. Fund managers invest the capital according to the fund’s strategy for a period of 5—10 years, typically paying annual dividends or accumulating returns.

3. Divestment. At maturity, the fund sells its assets and distributes profits to investors proportionate to their share, often with performance fees applied to gains above a specified threshold.

Unlike direct real estate purchases, fund investments require minimal ongoing management from investors while still qualifying for the Golden Visa program. The funds provide diversification, professional management, and potential returns, with a mandatory minimum holding period of 5 years to maintain residency status.

Portugal Golden Visa investment fund timeline

Eligible investors. To qualify for the Portugal Golden Visa through investment funds, applicants must meet these criteria:

• be at least 18 years old;

• not be a citizen of Switzerland, an EU or EEA country;

• have no criminal record;

• have comprehensive medical insurance coverage;

• possess legal income sources outside of Portugal;

• be able to invest €500,000 in qualifying fund units.

Requirements for US and UK citizens are the same.

Family members. The Portugal Golden Visa allows investors to include family members in their application:

• spouse or legal partner;

• children under 18 years old;

• financially dependent children up to 26 years old who live with the investor or study at the university;

• dependent parents of the main applicant or spouse.

There are more than 200 investment funds in Portugal. Only 50 qualify for the Portugal Golden Visa. These funds are registered with the Commission for the Securities Market and meet all the criteria required for eligibility for a residence permit.

Immigrant Invest lawyers select the most reliable funds. Our process involves comprehensive Due Diligence, examining fund management history, investment strategy, risk profile, and historical performance. We prioritise low-to-medium risk funds that balance capital preservation with competitive returns.

When applying for the Portugal Golden Visa through investment funds, there are three categories of expenses to consider: investment expenses, administrative expenses, and taxes. Understanding these costs upfront helps investors plan their budget effectively.

Investment expenses. The minimum requirement is €500,000.

Fees are already included in the investment:

• setup fee of 1—3%;

• management fee of 0.25—2.5%;

• annual fund commission on profits, 0.5 to 3%.

Administrative expenses. To apply for residency, a foreigner must have accommodation in Portugal. On average, rent for a one-bedroom apartment in the city centre costs around €930 per month, while a three-bedroom apartment is €1,600.

Other expenses include:

• medical insurance — €400 per person;

• application fee — €605 per person;

• residence permit card — €6,045.

Taxes. Portuguese tax residents pay 14% of their investment income, while non-residents pay none. An individual is considered a tax resident if they stay in Portugal for 183 days a year or longer.

Private equity investment funds eligible for the Golden Visa program are regulated by the Portuguese Securities Market Commission — Comissão do Mercado de Valores Mobiliários, or CMVM. This independent authority oversees fund operations and ensures compliance with both national and European financial regulations.

Specific criteria for Portuguese investment funds eligible for the Golden Visa include:

• investing at least 60% of capital in Portuguese companies or assets;

• being managed by licensed fund management companies;

• issuing units with a maturity of at least 5 years;

• adhering to EU anti-money laundering regulations;

• following transparent reporting and investor protection standards;

• avoiding residential real estate investments, as they are not permitted;

• submitting annual reports covering asset allocation, performance, risk exposure, and compliance with capital requirements.

The regulatory system includes investor safeguards such as asset segregation, independent audits, and transparent fee structures. This oversight provides an additional layer of security for Golden Visa investors beyond standard due diligence.

To apply for the Portugal investment visa, one must provide the following:

• passport copy;

• birth certificate, if applicable;

• marriage certificate, if applicable;

• tax identification number of the country of residence;

• NIF, or Portuguese tax identification number;

• bank statement for the last six months;

• certificate of no criminal record;

• document authorising AIMA to access criminal records in Portugal;

• proof of investment: sworn statement declaring compliance with the minimum quantitative and temporal requirements of the investment activity;

• evidence of proper tax filing;

• confirmation of residential address in Portugal, like a utility bill;

• documents proving the legitimate source of investment capital;

• completed and signed forms: investment subscription forms, anti-money laundering declarations, and investor profile questionnaires.

All documents that are not in English should be translated into Portuguese, and the translation certified by a Portuguese lawyer. If a document was originally issued in English, you can submit it in English without translation unless the authorities specifically request a Portuguese translation.

Investing in Portuguese private equity funds for the Golden Visa carries certain risks. Common risks are:

1. Market risk. Economic downturns, changes in government policies, or poor market performance can negatively impact fund returns.

2. Liquidity risk. Private equity funds typically have a fixed lock-in period of 5–10 years and do not offer a profit in case of early capital withdrawal.

3. Fund management risk. The fund’s performance depends on the competence and experience of its managers.

4. Performance and return risk. The fund may underperform, leading to lower-than-expected returns.

5. Currency risk. Exchange rate fluctuations can impact returns if one’s home currency differs from the euro.

At Immigrant Invest, we employ a comprehensive risk management approach to protect our clients' investments. Our strategy combines thorough due diligence, selective partnerships, and ongoing monitoring to address all potential risks.

We carefully select funds with diversified portfolios and transparent governance structures, partnering only with reputable CMVM-regulated managers who have proven track records. Our legal experts continuously monitor regulatory changes to keep clients informed and help structure investments to mitigate currency risks and liquidity concerns.