Portuguese investment funds via company capitalization remains one of the easiest qualifying routes for the Golden Visa – RBI Program, and they work as a structured way for investors to inject capital into Portuguese businesses through a regulated fund rather than direct ownership of a company. So far Portugal manages about 35 billion euro of investment funds (asset) according to Statistics Portugal
Portugal Economy
Golden Visa investments bring foreign currency inflows from abroad. These inflows strengthen Portugal’s balance of payments and encourage other international investors to consider the market.. Inflow of foreign capital into investment fund market boosts Portugal’s appeal as investment fund destination makes Portugal benefit economically.
- Boosts demand for professional services: fund management, auditing, legal, compliance, banking.
- Encourages the growth of regulated investment vehicles under CMVM supervision
- The companies funded by these investments generate corporate taxes, VAT, and payrollrelated contributions
Why Investment Funds
Anyone can invest in Portuguese investment funds – individuals or institutions, nacional, european or from third countries – provided they meet the legal, regulatory, and fund-specific requirements. The exact eligibility depends on the type of fund and the investor’s profile. These are different kind of funds for each sector..
Investment funds carry advantage and disadvantages depending on your convenience. You put capital at risk. At the same time the more risk you take, it get rewarded handsomely (high stakes game)
- Pros – Diversification, Invest in different Industries/sectors, Low setup costs, Low taxes, High returns than real estate, Easy exit, No management.
- Cons – High investment threshold, Risks, Profit sharing, Holding period, Complicated fee structure.
A Great Real Estate Alternative for High Returns
– Portugal funds deliver a super returns over real estate with more liquidity little or no management experience required. The whole capital can be redeemed after 6 years at the time you get citizenship.
| Differences | Investment Funds | Real Estate |
| Initial investment | 500,000€ | Closed for GV |
| ROI | 2%-16% | Residential – 4%-5% Commercial – 5% to 7% |
| Liquidity | Liquid | Not Liquid |
| Portfolio | Diversified allocation | 100% Real estate |
| Costs/Fees | Subscription fee, management fee, exit fee, performance fee etc.. | Property tax, Stamp duty, Lawyer fee etc.. |
| Taxes | No | Rental income |
| Management | Fund manager | Self |
| Risk profile | High | Low |
| Experience | Prior knowledge and experience with funds required | Not required. |
Fund Types
Venture Capital (VC) & Private Equity (PE): These are common, often closed-ended funds (FCRs) with a 5-year minimum term, investing in Portuguese SMEs, startups, tech, and renewable energy. Private equity funds pool money from investors and institutions invest in mature companies with proven track record. They carry high risk but rewards are substantial. Venture capital funds invest in early startups and young companies but carry very high risk of losing capital.
Open-Ended Funds: Some funds offer more liquidity with monthly subscriptions/redemptions, covering various assets like stocks, bonds, or crypto.
Alternative Investment Funds – Alternative Investment Funds (AIFs) are private investment funds that invest in non-traditional asset classes like real estate, commodities, cryptocurrencies, and hedge funds. AIF does not fall into conventional investment categories, which are stocks, bonds, or cash etc. Private equity or venture capital, hedge funds, real property, commodities, and tangible assets are all examples of alternative investments.
- Technology and innovation,
- Renewable energy,
- Tourism and hospitality,
- Agriculture and agritech,
- Healthcare and biotech
Related
- List of Investment Funds by Category
- Private Equity Funds
- Venture Capital Funds
- Alternative Investment Fund
- Mutual Funds
Golden Visa Eligibility
Portugal requires a Capital transfer of the amount of 500,000 Euros, or higher, for the acquisition of units of Private equity (PE) funds which invest in companies not listed in stock market or venture capital (VC) fund of funds dedicated to the capitalisation of startups companies. The conditions for capital injected under the Portuguese GV legislation, whose maturity, at the moment of the investment, is,
- Investment must be held for at least, of five years and, at least,
- 60% of the investments invested in companies headquartered in Portugal.
- Head office in national territory
- Yields: You should expect returns of 2-20% a year, for example when the fund ends in 5-10 years.
Fund Fees: Here are the brief overview of costs you should expect from subscribing to an Portugal investment fund
- Subscription fee – 1%-5%
- Period – 5-8 years
- Annual Fund management fee – 0.75% to 2.75% of the funds value.
- Performance fee & Hurdle rate – TBD
- Legal costs
- Exit / Success fee (paid to fund managers) when dissolving the fund.
- AIMA Fees
Taxes: Portuguese non-residents are generally exempt from paying taxes from dividends and capital gains on the investment fund. If you are a tax resident in Portugal, 10% of withholding tax on distributions apply.
Eligibility
Investment funds (private equity, VC fund) sold for the purpose of GV program must
- Regulated by Portuguese Securities Market Commission (CMVM),
- Must not invest directly or indirectly in real estate market.
- Fund manager is a depositary financial institution or Bank of Portugal regulated by central bank.
- Fund advisor is external Fund Management company.
- Audited by Portuguese Tax Authorities complying with tax laws.
- Comply and eligible for Golden Visa regulation.
- Disclose invested sectors, strategy risk and exit strategy.
ARI Residence
Under Article 90A, residence permit issued for 2 years and renewable.
Fact Check
- Subscription – The minimum subscription required is €500,000 or in units
- Investment Periods: Typically, funds require a 5–8-year commitment, reflecting long-term growth strategies.
- Regulatory approval – Fund must be approved CMVM securities commission, the apex authority in Portugal.
- Golden Visa Eligibility – The AIF fund must be eligible for GV. It is advisable to seek a legal opinion from a portuguese lawyer or lawfirm.
- EU/Citizenship: Portugal Golden Visa holders eligible to obtain European citizenship and an EU passport after five years of residency with minimal residence conditions, Only seven days required in Portugal per year with a choice of where you wish to have tax status.
- Tax obligations – Non-resident investors in fund are exempted from taxes in Portugal. A good CPA or auditor based in Portugal will give you a personalized advice before investing, can help to take advantage of Non Habitual tax regime.
- Targeted IRRs: Returns are forecasted to range between 10–20%, varying by fund strategy. Take into account profit share and dividends also paid by fund depending performance.
- Track Record: Many funds boast credible histories, being on their second or third cycle, which often indicates maturity and reliability. Likewise the Fund manager and Custodian must be well known with track record and experience.
- Capital Raised: Some Golden Visa alternative investment funds in Portugal have raised upwards of €50 to 200 million, showcasing robust investor interest.
- Invested sectors: From agriculture to high-tech, media, and tourism, funds tap into industries where Portugal shows global competitiveness.
- Diversification – Some funds spread investment across thriving industries, offering balanced risk and reward.
- Exit strategy – The fund must permit to redeem their investment after exit period usually ranges from 2-5 years. The put option is signed upfront, granting investors the right (but not the obligation) to sell their fund participation units whenever they choose, providing flexibility and security for early exits or in case of unforeseen circumstances
- Low Risk – The key to investing in a fund safely is to pick a fund with low risk. The risk indicator is a standardized metric used in European markets to convey the level of risk associated with investing in a particular fund, rated on a scale from 1 (low risk) to 7 (high risk). The level of risk shows predictable growth in the invested sector and provide predictable cash flows.
- Risk Protection: Investors should assess measures like capital preservation and operational risk mitigation.
- Fees and Annual Costs: Typically investors must consider subscription fee, management fee, profit share, performance fee, hurdle rate, exit fee etc..
- US investors – US citizens applying for Portugal GV must be aware of FATCA and PFIC. Investment funds and banks need to consider FATCA regulations.
How to Invest
Applying for Portuguese golden visa through fund subscription is a straightforward process. The first steps needed to apply for NIF tax number and opening bank account in Portugal to transfer funds.
- Obtain NIF Portuguese Tax number
- Open bank account in Portugal bank
- Transfer the investment from abroad to Portugal.
- Subscribe to the Investment fund
- File your golden visa application.
