Frequently Asked Questions – FAQ – Portugal Golden Visa
How do I open a Portuguese Bank account?
Usually, your Visa Agency and the Portuguese Lawyer will assist you with completion of application forms and supporting documents, so that you can open your bank account, without visiting Portugal. Note that the transfer of the €500,000 Euros for the investment would be transferred from your foreign bank account to your Portugal bank account. Then you would transfer the funds from the Portugal bank account to your Fund or Funds Depositary Bank accounts.
Can I invest in 3-4 Funds to ‘spread the risk’?
Yes. It’s definitely possible to invest in multiple Funds, but be aware that certain Funds have a minimum participation amount, which may be approximately €100,000 Euros, whereas other Funds stipulate that the entire investment amount of €500,000 Euros must be invested in their Fund.
What Form does a Fund Manager request that I complete in order to invest?
Each Fund has their own Compliance process, which includes completion of a Form and supporting documents about the Investor, Due diligence checks, KYC, and Money laundering, but the Applicant often completes an ‘Investor Profile Suitability Test’ form (TESTE DE ADEQUAÇÃO DE PERFIL DE INVESTIDOR – PESSOA SINGULAR).
If I decided to invest in a Fund, do I need to sign an Agreement with each Fund?
Yes. You will need to complete a Subscription Agreement (Boletim Subscricao), which includes the following information: 1. Identification (Contact details). 2. Politically Exposed Persons? 3. Income Source/Relevant Wealth Data. 4. List of Attached Documents – such as Proof of Overseas address, Copy of Taxpayer card, Proof of Profession/Retirement and Evidence of Portuguese bank account. 5. Subscription Identification – Number of Units and amount that you will invest in the fund in Euros. 6. Form of Payment – bank transfer. 7. Signatures (Assinaturas) – signed and dated by the Fund Manager and the Investor.
What are the main advantages of Funds Investment versus Residential Property Investment?
A Fund Investment has less fees and taxes associated with it, as opposed to purchase of Property in Portugal, and the Fund should generate a higher Annual Net income than Property. Generally, a Fund may have a Set-Up fee, Management fee – around 1% per annum, and Performance fee – around 5-10%. Note that all fees are deducted from invested capital. Whereas, a Residential Investment has the following fees and taxes: Property Management fees, Condominium fees, Maintenance costs, Insurance policies, Deed Charges, Fiscal and Legal representative costs, Transfer tax, Annual Gross IRR, Municipality tax, Net income Tax and Property maintenance costs.
What are the steps required to get a Golden Visa through Funds investment?
1. Visa Agency Assistance – sign agreement with VisaConnect for Agency assistance and advice. 2. Applicant’s Intention to Subscribe to the Fund (s) – complete KYC process. 3. Portuguese Lawyer – VisaConnect’s referral to a Portuguese Lawyer and sign Agreement with Lawyer for Golden Visa assistance. 4. Open Portuguese bank account. 5. Subscribe to the Fund (s) and make the Investment. 6. Golden Visa Residency Card approved in approximately 6 months.
What are a few significant benefits of investing in Portugal?
A. Quality of Life. B. Political and Social stability. C. Modern Infrastructure. D. Accress to free world class education. E. 5th Strongest Passport – 184 visa free countries. F. Access to free and universal healthcare. G. 3rd safest country in the world. H. Best country in Europe for expats. I. Favourable tax and fiscal regime. J. Access to Schengen Area. K. Mediterranean Food, Nature & Lifestyle.
Once I have made the investment, do I get any confirmation document from each Fund?
Yes. You will receive a Declaracao Entidade Gestora (Fund Declaration), which will be signed and dated by the Directors of the Fund and specify the number of Units and total amount in Euros invested.
What portfolio type of Investment should I invest in?
Note that since October 2024, Funds have new Property Real Estate restrictions, so the Fund can no longer comprise any Property projects. There are many different types of investment, with some investments generating higher annual returns than other investments, including: 1. Wine – Vineyards and Cork production. 2. Agricultural Properties – Irrigated farmland is a very attractive & scarce asset class that offers investors a combination of a steady yearly income and high exit returns due to the natural appreciation of the land. 3. Farmland – Sustainable development – Organic agriculture improves nutrition and supports local food. Protects bio-diversity, halts and reverses land degradation, and promotes vital ecosystems through their farming methods. In addition, Sustainable agricultur sequesters carbon and creates more resilient landscapes. 4. Solar Energy – renewable energy investment projects, based in Portugal.
Does a Fund need to be registered with the Portuguese Securities Market Commission (CMVM)?
Yes. The Fund would need to be supervised and regulated by the Portuguese Securities Market Commission (CMVM) – Comissão do Mercado de Valores Mobiliários, with an Authorised Number.
Contact VisaConnect’s Visa Consultants and our partner Portuguese Immigration Lawyers for advice assistance with your Portugal Golden visa application for a Portugal Residence Permit.
See our web page:
https://www.visaconnect.com/portugal-golden-visa-funds-investment
VisaConnect Immigration Blog 