What is a Golden Visa?
The Golden Visa program, also known as the residence permit for investment activity (ARI), is a citizenship by investment scheme designed for foreign citizens.
How it works
The Golden Visa program is a unique investment opportunity that grants individuals citizenship in return for eligible investments in the host nation. This program is an ideal investment for those aiming to provide their families with access to exceptional healthcare, free education, employment opportunities, and lifestyle benefits.
Portugal stands out as one of the most favored destinations for the Golden Visa program, thanks to its access to the European Union, top-notch educational and healthcare systems, high quality of life, political stability, and well-established infrastructure. There is a new option to obtain the Portuguese Golden Visa: a real estate fund. This method entails transferring 500k euros into a private equity investment fund, where the investment is held for 6 years. During this period, investors can expect a 2% annual return. Upon divestment, participants receive a buyback of their investment.
Benefits of the Portuguese Golden Visa
Portugal has a balmy climate, similar to that of California. You can expect hot summers and mild winters.
Portugal offers some of the lowest costs of living in Western Europe, without sacrificing the quality of life. Nearly everything is very affordable, from food to education, to healthcare, and leisure and social activities.
Portugal was voted as one of the best travel destinations in Europe. The combination of comfort and economic stability makes Portugal attractive for investment and relocation.
You can qualify for residency by investing €500,000 in Portugal, one of the lowest investment thresholds in Europe.
You don’t have to live in your home country while you await your citizenship. Portugal grants investors residency as soon as the application is accepted.
You are eligible to apply for Portuguese citizenship in five years. This is one of the quickest in Europe.
Once you become a Portuguese citizen, you get visa-free access to 188 countries.
Portugal is famous for its vibrant culture, including festivals, cuisine, art, and historical sites. Many investors are drawn to the country's rich cultural experiences.
Portugal is known for having world class healthcare that is free for all legal residents, meaning investors get access immediately upon application approval.
Public transportation in Portugal is well-developed, efficient, and widely available, making it a convenient way to travel within cities and countries in the EU.
Investment Details
Steps to getting a Golden Visa
The only Golden Visa option in Portugal that provides annual returns and allows you to get all your money back is a Portuguese Securities Market Commission private equity 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.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.
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.
The minimum investment term is 6 years, which is Portugal’s requirement to obtain citizenship.
The maximum investment term allowed by the fund is 12 years.
The fund size is 140 million euros, which is the total investment amount from all investors in the fund.
The total investment amount required per investor is 500,000 euros. This is the Portuguese government’s requirement to qualify for the Golden Visa.
The management fee for the fund is 0.25% + 2,000 euros. This is paid by the fund.
Options for returns:
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
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 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.
Free 7 days stay per year at any of the fund manager’s hotels (Hilton, Hardrock, Holiday Inn, etc.).
Steps to getting a Golden Visa
Steps to getting a Golden Visa
Step 1 : Choose a qualifying investment and legal team.
- Certificate from Land Registry: A certificate issued by the Land Registry, obtained within three months prior to your application, is required to prove ownership of the property. This certificate must include the purchase amount, which should be no less than €500,000.
- Spain Visa Application Form: You need to complete the Spain Visa Application Form as part of your application process.
- Passport Photos: Two passport-size photos that adhere to the specific picture guidelines for a Spanish visa.
- Valid Passport: Ensure that your passport will remain valid for the initial period you intend to spend in Spain and that it has at least two blank pages. You may also be required to provide a photocopy of the personal information page of your passport.
- Residence Permit (if applicable): If you are not a citizen of the country where you currently reside, you’ll need to provide your residence permit.
- Proof of Sufficient Income: Documentation demonstrating that you have sufficient income to support yourself and your family during your stay in Spain.
- Police Records: Provide police records issued within the three months prior to your application to prove you have no criminal background.
- Proof of Visa Fee Payment: Provide evidence of payment for the visa fee associated with your Golden Visa application.
- Certificate from Land Registry: A certificate issued by the Land Registry, obtained within three months prior to your application, is required to prove ownership of the property. This certificate must include the purchase amount, which should be no less than €500,000.
- Spain Visa Application Form: You need to complete the Spain Visa Application Form as part of your application process.
- Passport Photos: Two passport-size photos that adhere to the specific picture guidelines for a Spanish visa.
- Valid Passport: Ensure that your passport will remain valid for the initial period you intend to spend in Spain and that it has at least two blank pages. You may also be required to provide a photocopy of the personal information page of your passport.
- Residence Permit (if applicable): If you are not a citizen of the country where you currently reside, you’ll need to provide your residence permit.
- Proof of Sufficient Income: Documentation demonstrating that you have sufficient income to support yourself and your family during your stay in Spain.
- Police Records: Provide police records issued within the three months prior to your application to prove you have no criminal background.
- Proof of Visa Fee Payment: Provide evidence of payment for the visa fee associated with your Golden Visa application.