What is a Jumbo Account?
A number of fund companies and real estate developers, offer jumbo (also called omnibus) accounts on behalf of golden visa clients, allowing Investors to transfer funds directly to a centralized account from abroad via international bank transfer without the need for opening bank account in Portugal
Innovative Solution
Th Jumbo account innovative solution can be particularly useful for non-residents, as it often skips the need to open a local Portuguese bank account until they are physically in the country, simplifying the initial investment process and potentially avoiding some banking costs.
This setup allows investors to transfer funds to a single centralized account when subscribing to the fund. The fund manager then handles the internal allocation and compliance (Know Your Customer/Anti-Money Laundering).
the Investor takes immediate “ownership” of the investment, as the Units of Participation will be deposited in the fund/securities account, and they have flexibility in managing ongoing or future transactions related to the investment.
Traditional Bank Account
It normally takes 4-5 months to open bank account in Portugal with portuguese banks for golden visa purpose. The jumbo solution speeds up the golden visa application process (cutting the wait time by 4 months). All banks need a Portuguese tax number (NIF) to open a standard bank account. Opening a bank account in Portugal has become a lengthy and bureaucratic process. Due to stricter Bank of Portugal regulations, Investors now face more extensive scrutiny and documentation requirements in addition to proof of identity, proof of address, a Portuguese taxpayer number (NIF), financial statements from the country of origin, and detailed evidence of the origin of funds.
Opening a Portuguese bank account is not strictly mandatory for transferring funds for a Golden Visa investment.
Withholding Tax
Jumbo accounts in the name of one or more account holders acting on behalf of undisclosed entities (e.g., typically “jumbo” accounts) such income will be subject to withholding tax in Portugal at a rate of 30% unless the beneficial owner of the income is disclosed. Failure by the investors to comply with this disclosure obligation will result in the application of the said Portuguese withholding tax at a rate of 30%
