Portugal golden visa has become more accessible and cheaper by financing €500,000 investment fund investment. There are number of private equity and venture capital funds that invests in energy, hospitality, crypto, agriculture and technology.
Financing
With US and the rest of the world and the stock market taking the impact. We had some investors asking us if it is possible to reduce the upfront commitment of capital from €500,000 to €300,000, so they wouldn’t have to sell their stocks right now at a huge loss.
Here are the available financing options for PGV….
- VC Fund – Donation – €168,000 (walkaway option). No returns, no refund.
- Hospitality Fund – Financed – €300,000 (€200,000 interest free loan). €300K given back after 5 years. No dividends or interest or gains paid. Second option is pay €500K and get 10-15% ROI.
- Hospitality Fund – Financed – €325,000 (Profits paid upfront). After 5 years you get 500K back or swap with luxury apartment after the end of golden visa.
- Crypto Fund – Equity – €500,000 – 15-20% ROI and withdrawn anytime (open end fund)
With the financing option, the investor bears no risk and have no say on the fund performance and management.
The walkaway option is considerably cheap compared to the 250K cultural donation option in Portugal. We generally do not recommend donation options to our clients because the money is non-recoverable and is wasted. If clients do not want to bear the risk then options 1-3 is more suitable comes with peace of mind.
Financing Conditions
One of the key conditions for Portugal GV funds are,
- Private equity (PE) funds which invest in companies not listed in stock market
- Venture capital (VC) fund of funds dedicated to the capitalisation of startups companies.
To meet the conditions for golden visa, the financed investment must meet the following conditions.
- The Loan must come from outside Portugal, financed by the lender with proven track record.
- Investments in direct or indirect real estate assets not allowed.
- Fund must have CMVM approval and meet legal requirement
- Fund should not provide guaranteed return ROI to investor.
- Fund must invest in 60% in Portuguese companies and rest in any sector, invested no less than 5 years.
The processing time for Portugal golden visa is much faster 3-6 months if all documents submitted are fresh and in order.
Portugal – The Only GV
Portugal is the only EU golden program that provides these distinct benefits making it super popular:
- Minimal residence conditions
- Portugal (EU) citizenship after just 5 yrs.
- Wait times count towards citizenship in Portugal.
- Perfect location proximity to North America, Europe and Asia.
- Full right to work and employment.
- Visa free waiver in 29 EU/Schengen states (no ETA required)
- Residence permit granted for 1+2+2 years for fund investors.
If you have any questions, please contact us for more information.
Disclaimer – This is not investment advice. Investors in GV fund must have thorough knowledge or previous experience on risks, fees and portfolio allocation. Please read the contract carefully and seek professional advice of a financial planner.
