As you may know, Portugal terminated its Golden Visa program in October of 2023. This program allowed non-EU citizens to obtain Portuguese citizenship and an EU passport in exchange for purchasing a commercial real estate unit for a minimum of 280,000 euros. Now, with the program terminated, non-EU citizens have had to look elsewhere for their visa interests, and the other options are nowhere near as advantageous as Portugal’s once was.
But we have very exciting news… Portugal’s Golden Visa option is still available! It is just now under different parameters. Keep reading to see what we mean.
Previously, there were 4 ways for non-EU citizens to get Portugal’s Golden Visa.
- Creation of at least 10 jobs
- Minimum investment of 500k euros for research activities (sciences, arts, etc.)
- Donation of minimum 250k euros for Arts, National Heritage, and Culture
- Capital transfer of minimum 500k euros combined with the creation of 5 permanent jobs, or maintenance of at least 10 job positions and for a minimum period of three years.
We now want to introduce the 5th option: The Real Estate Fund
This option, simply, is the transfer of 500k euros into a private equity investment fund where you hold your money for 6 years, seeing a 2% return per annum, then receive a buyback upon divestment. Continue reading for further clarification.
What is a Private Equity Investment Fund?
A private equity investment fund is a specialized investment vehicle that pools capital from investors to acquire and manage private companies, aiming for profitable exits. The investment strategy of this fund is focused on the hospitality sector in Portugal.
This fund will invest in companies with a high potential for growth, appreciation of value and profitability, operating in the hospitality sector, targeting co-investment opportunities that promise appreciation in value over time.
Investors can look forward to a diversified investment experience, with holdings spread across various hotel projects within the fund’s scope.
Commitment to the fund is designed to be in line with the prerequisites of the Portuguese Golden Visa Program, with a minimum investment amount of 500,000 euros, providing an attractive avenue for non-EU investors seeking Portuguese residency benefits along with financial returns.
Additionally, this fund underscores investors confidence with a buyback option, enhancing investment security.
This opportunity offers a platform for non-EU investors to gain from Portugal’s growing tourism and hospitality by investing in a vehicle that grants them citizenship.
| Let’s get into the investment details: |
| Type of Investment: Portuguese Securities Market Commission private equity fund Investment Scope: Investing in hospitality-focused firms Minimum Investment Term: 6 years Maximum Investment Term: 12 years Fund Size: 140 million euros Participant Minimum Investment Amount: 500,000 euros Management Fee: 0.25% + 2,000 euros (paid by the Fund) Return on Investment: 2% per year tax free Guaranteed Buyback by Fund Manager: From year 6 onward Hotel Benefits: Free 7 days stay per year |
Option 1: 2% fixed return paid annually with guaranteed buyback
Option 2: Payment of accrued returns upon exit along with the guaranteed buyback
Exit year 8 = 18% return
Exit year 10 = 24% return
Exit year 12 = 30% return
Buyback:
A buyback means the fund manager will pay you back your entire investment amount upon divesting from the fund. This means after year 6 (or if you choose option 2: year 8, 10, or 12) you get your full 500,000 euros back. Fundamentally, you are parking 500,000 euros in a fund that offers steady returns and citizenship.
So with the returns and buyback, you are essentially getting you and your immediate family citizenship for free. What a deal!
