The Portugal Golden Visa underwent significant changes throughout 2023, with October 2023 marking the official announcement of the program's new direction. Notably, the option to invest in real estate has been eliminated, previously the most popular path to the Portugal Golden Visa. In light of these transformative changes, many investors are now turning to Portugal Investment Funds as their avenue to obtain the Portugal Golden Visa. This guide will provide a comprehensive walkthrough of the Portugal Golden Visa Investment Fund pathway, including recommendations for approved funds. Read on to explore whether the Portugal Investment Fund option could be your most enticing pathway to securing European residency.

Why Portugal

Portugal has emerged as a vibrant destination on the world stage, garnering increasing attention over the past decade. The Portugal Golden Visa program has played a significant role in bolstering its popularity. Portugal has undergone substantial reforms and is a progressive European nation known for its safety, prosperity, and welcoming atmosphere. From its captivating landscapes, pleasant climate to its warm and hospitable people, Portugal offers a range of immigration pathways that cater to traditional migrants, expatriates, digital nomads, retirees, and international businesspeople. Moreover, with the right steps, some who come to Portugal can eventually obtain Portuguese citizenship, further enhancing its appeal.

If you're on this page, it's likely that you're already convinced about Portugal as a destination and are now navigating the logistics of how to get there, specifically through contributing to Portugal Investment Funds. So without further adieu, let's now take a closer look at the Portugal Golden Visa.

Portugal Golden Visa Program Overview

A golden visa represents a residency by investment opportunity available to third-country nationals. Portugal's program has enjoyed considerable success in recent years due to its strategic Mediterranean location, reasonable investment costs, and flexible requirements. Since its launch in 2012, the Portugal Golden Visa program has attracted over €7 billion in investments into the country.

With the removal of real estate as a viable investment option, the Portugal Golden Visa program has entered a new phase, and only time will tell as to whether the program will remain as popular as it has been over the past decade. That said, Portugal's Golden Visa provides the only pathway

What is a Portugal Golden Visa Investment Fund?

A Portuguese investment fund is a financial services product that aggregates investments from various investors and allocates them to diverse asset classes like stocks, bonds, or real estate projects. If profits are generated, they are distributed among the investors, with the fund company taking its commission. Most funds approved for Golden Visa qualification fall under the category of 'fundo de capital de risco' (FCR), including venture capital funds and private equity funds. Notably, Golden Visa qualified funds related to real estate are no longer accepted, following changes in eligibility rules.

To embark on your journey of investing, you need to commit a minimum of €500,000 using funding investment techniques that adhere to Golden Visa regulations.

The Portugal Golden Visa Investment Fund option was introduced in 2017 as an amendment to Portuguese Law no. 102/2017. According to this law:

"The acquisition of units of investment funds or venture capital funds dedicated to the capitalization of companies, a capital transfer of €350,000* or more is required. These funds must comply with Portuguese legislation and have a maturity of at least five (5) years. Furthermore, at least 60% of the investments must be made in commercial companies with their main offices located within the national territory of Portugal."

As of January 2022, the required amount was increased to €500,000. Additionally, as of October 2023, Investment funds must not have a direct or indirect relationship to the real estate market.

Benefits of the Portuguese Investment Fund Golden Visa

  • Management Delegation: Owning a participation unit in an investment fund is a hassle-free investment as the responsibility of management is delegated to the fund managers, contrasting with the burdens of being a real estate landlord.
  • Potential Earnings: Depending on the fund's focus, annual yields, and eventual capital appreciation, earnings may be significantly higher compared to other investment options related to the Golden Visa program.
  • Diversification: Portuguese legislation mandates a certain level of diversification in funds, reducing risk for participating investors.
  • Tax-Efficiency: Investments in funds may yield significant tax efficiencies depending on the fund and investor's tax structure. Some cases allow for exemption of withholding tax on income generated by the fund, especially if investors are not tax residents in Portugal.
  • Secure Investment: A registered Portugal fund is regulated by various authorities, ensuring compliance with local legislation, tax laws, and the proposed investment plan.
  • Low Fees and Taxes: Compared to real estate acquisition, investing in investment funds doesn't incur hefty fees and taxes.
  • Reasonable Investment: The minimum investment required is the same as that of the Spanish Golden Visa (real estate option) investment threshold at €500,000. However, Portugal offers a much more flexible pathway to citizenship/

Cost and Associated Fees

The Portugal Golden Visa program requires a minimum investment amount of €500,000 through designated investment funds. The lock-up period for this type of golden visa is six years, and the capital must be invested in Portuguese companies to qualify.

Fund Selection Criteria

When considering an investment fund for Portugal's Golden Visa program, it's crucial to evaluate its portfolio, management company, team, and experience. It's important to note that subscription/setup fees can vary, ranging from 1% up to 5% or a fixed amount. Not all Funds in 'Fundo do Capital de Risco' qualify for a Portuguese Golden Visa application due to real estate involvement. Only Growth/Buy-out funds and Venture Capitals are accepted by this particular visa program.

Portugal Golden Visa Eligibility

Under the Portugal Golden Visa program, non-EU-EEA and non-Swiss citizens with a clean criminal record are eligible to apply. Additional prerequisites, such as proving financial expertise and demonstrating access to ample funds, may be imposed by the fund management company.

American Citizens investing in Portuguese funds

American citizens are eligible to invest in Portuguese Investment Funds to acquire the Golden Visa. However, it's essential to be aware of IRS regulations that mandate foreign financial institutions and entities to disclose the foreign assets of their U.S. account holders. While some banks and funds may welcome American investors, others might be deterred by these compliance requirements.

Type of Investment Funds

Portugal offers various investment funds as part of the Golden Visa program, including venture capital and private equity funds. These options cover a wide range of opportunities, from industrial ESG-focused businesses or early-stage tech startups.

Regulation and Oversight

The Portuguese Securities Market Commission (CMVM) oversees investment funds in Portugal, akin to the U.S. SEC. Fund units held by Americans must comply with FATCA rules when held by remote account openers. Annual audit deadlines, in line with FATCA requirements, are in place for all active Portuguese Funds.

Steps to Invest in Golden Visa eligible funds

Investing in Portuguese investment funds for the Golden Visa program involves choosing an appropriate fund, opening a bank account in Portugal, and completing the necessary steps for your investment.

Choosing an Investment Fund

When selecting an investment fund, consider factors like investment conditions, yield rates, fees, and the experience of management teams and advisers. Enlisting experts in Portuguese Investment Funds can provide valuable guidance.

Opening a Bank Account in Portugal

To invest in a Portugal investment fund for the Golden Visa program, you must open a bank account with an institution based in Portugal. This may require physical presence, although some institutions offer online applications.

Completing the Investment Process

Once you've chosen an investment fund and established a bank account in Portugal, you'll make the necessary investment transfer and sign a contract with the fund. Biometric data and proof of capital deposit must be presented when applying for the Portugal Golden Visa program.

Tax Implications and Reporting Requirements

Non tax-residents and U.S. citizens investing in Portugal investment funds should consider potential tax exemptions and relevant treaties. Additionally, compliance with regulations such as FATCA and PFIC is essential due to taxation on income from these investments.

Monitoring and Managing Your Investment

Continuously monitor your investment's performance and adapt to market conditions. Assessing fund performance against benchmarks and key metrics can help you make informed decisions.


Investing in Portugal Golden Visa investment funds comes with certain drawbacks, including sharing earnings with fund managers, KYC obligations, restrictions on exit options, and limited control over investment decisions.

Exiting Your Portuguese Investment Fund

Exiting a Portugal Golden Visa investment fund involves considerations like resale or transfer of participation units, the exit market, extension periods, and minimum lock-up periods. Careful planning is essential.

Frequently Asked Questions

  • What are the best investments in Portugal? Opportunities abound in industries like pulp and paper, tourism, transportation, telecommunications, financial services, and natural resources. Making informed investment decisions can yield significant results.
  • What is the Golden Visa fund option in Portugal? The Portugal Golden Visa program offers eligible applicants access to golden visa funds through a capital transfer of €500,000 or more to venture capital and investment funds designed for corporations.
  • Is Portugal a good country to invest in? Portugal offers the advantage of eligibility for its Golden Visa program, providing access to the benefits of EU residency. This, along with attractive conditions, makes it an ideal choice.
  • What is the minimum investment for Portugal Golden Visa? To obtain a Portugal Golden Visa, an initial investment of €500,000 is required to cover government application fees, legal fees, and processing charges.
  • Is there a requirement to live in Portugal under the Portugal Golden Visa Program? Golden Visa holders are required to spend at least seven days each year in Portugal.
  • What types of investment funds are available in Portugal for the Golden Visa program? Venture capital and private equity funds are available for investors seeking a Golden Visa in Portugal. These options offer diverse financial prospects.

For more information on the Portugal Golden Visa Investment Fund option visit Lincoln Global Partners and check out our comprehensive guide to Portugal Golden Visa investment funds.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.