Portugal Golden Visa through purchasing shares of investment funds: practical guide

An investment fund in Portugal is a regulated financial vehicle that pools capital from multiple investors and allocates it into a diversified portfolio of assets. These may include Portuguese or European equities, bonds, commercial or residential real estate, infrastructure projects, or private equity investments in local companies.

These funds are not companies themselves, but are typically structured as collective investment schemes and managed by licensed fund management companies.

When you invest in a Portuguese fund, your money is combined with that of other investors. The fund’s management company makes investment decisions based on a predefined strategy outlined in the fund’s constitutional documents.

After generating returns, the fund deducts applicable management and performance fees, and distributes the remaining profits proportionally among investors.

Most investment funds have two key components, namely:

• fund manager, who handles day-to-day portfolio management, makes buy and sell decisions, monitors performance, and ensures compliance with the fund’s investment objectives;

• investment committee, which provides oversight and approves strategic decisions, particularly large or high-risk allocations.

This structure ensures both operational agility and robust risk management.

Every fund operates under a specific investment strategy, clearly defined in its regulatory filings and investor agreements. These strategies can vary widely — from investing exclusively in residential real estate to supporting tech startups or renewable energy infrastructure.

A fund can only invest within the scope of its declared strategy. Changes to that strategy typically require approval from the regulator and, in many cases, the investors themselves.

Useful acronyms for Portugal Golden Visa fund investors. Some of the Portuguese-specific acronyms which are used in the investment fund industry and can be helpful for Golden Visa applicants are as follows:

• QIF — Qualified Investment Fund;

• FCR — Fundo de Capital de Risco, or private equity fund;

• UP, or PU in English — Unidade de Participação, or participation unit, which is equivalent to a share in a fund;

• PU — Participation Unit in English,

• SCR — Sociedade de Capital de Risco, or venture capital fund;

• RG — Regulamento de Gestão, or management regulations, which means the document defining the fund’s operational principles;

• SEC — Securities and Exchange Commission;

• CMVM — Comissão do Mercado de Valores Mobiliários, or the Portuguese Securities Market Commission;

• SGOIC — Sociedade Gestora de Organismos de Investimento Coletivo, licensed fund management companies.

Residency eligibility. Investors purchasing fund units in Portugal can qualify for the Golden Visa.

Those who already invest in financial instruments. Funds are often chosen by investors who understand the operation of financial markets and want to preserve capital: investing in funds helps to diversify income and risks.

Those who don’t want to invest in a Portuguese business. A foreign investor has two business options under the Golden Visa program:

1. Invest at least €500,000 in an existing Portuguese company and create at least 5 jobs.

2. Open a company in Portugal and create at least 10 jobs.

Maintaining a business abroad can be challenging and doesn’t suit everyone’s goals. Besides, the return on the invested money isn’t guaranteed as it hugely depends on the project’s success and profits.

Therefore, if an investor isn’t ready to engage in some entrepreneurial activity, wishes to receive a guaranteed passive income and returns the invested money in several years, they prefer fund units to business options.

Those who want to get a Portugal residence permit. Until late 2023, real estate was the most popular route to securing a Portuguese residence permit — accounting for about 95% of Golden Visa applications. However, following legal reforms introduced in October 2023, real estate investments are no longer eligible.

Today, one of the most accessible and popular alternatives is through qualified investment funds. Other available options include contributions to scientific research or cultural projects and business creation — but for many, funds remain the most streamlined and low-maintenance choice.

Farid and Sabina,

Owner of a fintech company and a housewife

From visa stress to stability via fund investment

Farid and Sabina were living in the US on tourist visas, facing a long 10-year wait for residency and the looming risk of deportation to Azerbaijan. They needed a secure backup plan — fast.

Instead of starting a business or taking on risky options, they chose a €500,000 investment in a Portuguese real estate-focused fund. It offered a low-risk, hands-off path to the Portugal Golden Visa.

At first, Portugal was the couple’s Plan B. But with their son already living in Porto, they fell in love with the lifestyle and made it their permanent home.

With our support, the spouses received their Golden Visa in just 14 months, gaining EU residency and long-term peace of mind — while still keeping their US goals open.

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Portugal Golden Visa investment fund options differ in the type of assets in the portfolio, the size of commissions and fees, the frequency of dividend payments — annually or at the end of the term, profitability, and investment model.

According to the type of assets in the portfolio, funds can be divided into several categories. Here are the most common investment fund categories:

• funds investing in real estate, both residential and commercial;

• funds investing in equities, like company shares and bonds;

• funds investing in commercial enterprises such as manufactories, IT startups, and wineries;

• mixed funds combining several types of assets.

Mixed funds are rare: about 10% are on the market. The rest are represented approximately equally.

According to the degree of diversification, funds can be divided into those investing in one or several sectors of the economy. A fund can invest only in one property, one company, or several at once, all in Portuguese properties or partly in European or American ones.

All funds offer a different combination of risk and return. Each of them may have its own advantages, such as annual dividends, high returns, or diversification. For example, venture capital funds that invest in early-stage companies offer a higher level of yield but feature higher risks. Such funds usually do not pay dividends, and the investment term is generally up to 10 years.

When choosing a fund, it is necessary to consider a set of criteria, including:

• investment strategy and portfolio;

• experience of the management company;

• team of the fund;

• commissions for asset management, subscription, and transfer of funds;

• exit strategy.

Portugal Golden Visa fund investment can be a suitable option for applicants who do not intend to live permanently in Portugal or do not want to invest in business to get a residence permit.

The minimum investment in funds is €500,000. One needs to hold assets for at least five years, but the money is typically returned after 6 to 10 years.

There are approximately 200 investment funds in Portugal, but only 50 registered with the Commission for the Securities Market qualify for the Portugal Golden Visa program. This is due to specific requirements a fund must meet regarding capital distribution and share maturity.

To qualify for the Portugal Golden Visa program a fund should:

• be registered with the Portuguese Securities Commission;

• have at least 60% of the capital invested in Portuguese companies or real estate;

• issue shares with a maturity of at least 5 years.

The setup and management fees are already included in the investment

Investment funds qualifying for the Portugal Golden Visa operate within a strict regulatory framework designed to protect investors and ensure market integrity. Here are the key aspects of the regulation.

Regulation and supervision. Private equity and venture capital funds eligible for the Golden Visa are regulated by Portugal’s Comissão do Mercado de Valores Mobiliários, or CMVM — the national securities market authority. Fund managers are required to report regularly to the CMVM and comply with ongoing oversight.

These funds must also adhere to European Union regulations, including Anti-Money Laundering, or AML, and Know Your Customer, or KYC, procedures, which help prevent financial misconduct and ensure transparency, investor protection, and proper risk management.

Each fund must be managed by a licensed fund management company, known as a Sociedade Gestora de Organismos de Investimento Coletivo, or SGOIC. The CMVM supervises all such licensed entities operating in Portugal.

Getting started. When an investor contributes to a fund, they typically enter into an agreement as a Limited Partner, or LP. This structure limits the investor’s liability to the amount invested and does not require them to be involved in fund operations.

Golden Visa applicants can diversify their capital across multiple eligible funds, provided the total investment equals at least €500,000 and is maintained for a minimum of five years, as required by Portuguese immigration law.

Investment strategy. Golden Visa-eligible funds generally invest in areas that align with national priorities, such as Portuguese companies, infrastructure, innovation, and select types of real estate. However, due to recent legislative changes, funds are no longer permitted to invest in residential real estate located in high-density or coastal areas.

Many funds are designed with multi-year exit strategies of 1 to 3 years to help avoid rushed sales during unfavorable market conditions. However, capital returns and income are not guaranteed, and investors should always review the fund’s prospectus and risk disclosures carefully.

Investment yields of funds are impossible to predict as yields of previous years do not guarantee the same income in future. Target yields range from 3 to 10%, depending on the fund investment model.

Funds with high expected yields usually invest in more risky assets, for example startups, and therefore, feature a higher risk profile. Buying units in low-risk funds yields investors lower income.

The risk profile of Portuguese investment funds, which defines the potential for investors to lose their money, depends on several factors, including but not limited to the following:

• assets acquired by the fund;

• sector of the economy;

• experience of the fund manager;

• liquidity of assets;

• the current economic cycle.

The risk scale usually includes 5 levels of risk: very low, low, medium, high, and very high.

Most often, investment funds are organised legally by a limited liability company, LLC. This means one can invest in the fund only during its formation and withdraw the money without losing interest only after it is closed.

Investors acquiring fund units to obtain a Portugal Golden Visa, must hold their investments for at least 5 years to maintain the status. If the Golden Visa holder withdraws their investments ahead of schedule, their residence permit will be renounced.

However, if the investor acquires Portuguese citizenship after 5 years of holding residency, they can return their money earlier, provided the fund conditions allow it.

Operational stages of investment funds

1. Subscription. During the first two years, the funds collect money from investors. If there is enough capital, the fund can immediately begin the selection of suitable properties and assets. This period is called the Subscription Period.

During the Subscription Period, investors must conclude an agreement and deposit money. After that, the fund closes the subscription and no longer accepts new investors.

The minimum investment depends on the fund and can start at as little as €1,000, but an applicant for a residence permit in Portugal must invest at least €500,000.

The subscription can be free or require a commission, which is taken from the investment sum and can amount to up to 3.5% of the money invested.

2. Investments and asset management. For the next four years, funds invest money, collecting a portfolio of assets as part of their investment model spelt out in the contract. Some funds pay dividends annually, while in others, investors receive their income only after closing.

Funds charge an annual asset management fee, ranging from 0.5 to 3% of the invested amount. But this does not entail additional costs: the fee is taken from the investments or profits.

3. Divestment. After 6 or more years, funds begin to sell assets to make a profit. This process takes 1 to 4 years. Such a long period is needed to sell assets as profitably as possible. After selling the assets, funds distribute profits proportionately to each investor’s share, taking into account capital gains received.

If there is a market correction or low demand for assets, managers typically wait for a more favourable moment for a sale to prevent losses and maximise profits. Thus, the investors' money may be "frozen" for a longer period than initially planned.

Minimum holding period. To maintain a residence permit in Portugal and obtain citizenship, an investor cannot withdraw investments earlier than after 6 years. As a rule, investment funds qualifying for a Portugal Golden Visa do not allow earlier exits to make sure the investment remains valid for a period required by the program conditions.

Withdrawing money ahead of schedule. An early exit from the fund is often possible if the investor resells their share to another investor. However, shares of investment funds, especially those designed for Golden Visa applicants, are not very liquid and it can take a while to find a buyer.

Some funds offer the opportunity to buy back shares from investors at discounted prices. This is usually possible once the holder completes the minimum investment period required by the Golden Visa program.

Exiting the fund upon maturity. By the set date, the fund manager sells fund assets and divides money and profits as per investors’ shares. The manager takes their commissions and transfers money to investors according to the fund’s internal procedures.

Discover the benefits of the Portugal Golden Visa and a unique way to EU citizenship

Conditions for applicants. Investors must meet specific requirements to obtain a residence permit in Portugal. They relate to income, health, age, and biography. Compliance with the requirements of the Golden Visa program is confirmed with corresponding certificates and personal and financial documents.

An investor can take part in the residence permit program in Portugal if they:

• are over 18 years old;

• aren’t a citizen of Switzerland, one of the EU or EEA countries;

• have no criminal record;

• have no socially dangerous diseases like tuberculosis;

• have medical insurance with full coverage;

• have a legal income outside of Portugal.

When applying for a Golden Visa, the investor must provide a confirmation of a transfer of €500,000 to a bank account in Portugal. They must also provide an agreement with the fund specifying the amount of investment and the investment model of the fund.

The Portugal Golden Visa can be extended to the investor’s family, including the spouse, dependent children up to 26, and dependent parents.

Expenses on obtaining residency through fund units purchase. Along with the purchase of investment fund units, applicants bear additional expenses. Here is the list of additional costs paid by investors obtaining a Portugal Golden Visa through purchasing investment fund units:

• subscription fee — up to 3.5%;

• annual fund commission on profits — 0.5 to 3%;

• tax on investment income — 14% for Portuguese tax residents, 0% for non-residents;

• application fee — €605 per family member;

• residence permit card fee — €6,045 per family member;

• health insurance — €400+ per family member.

Before proceeding with an investment fund purchase for your Portugal Golden Visa, you must prepare a complete set of documentation. This paperwork serves to verify your identity, establish your financial capacity, and ensure compliance with both the fund’s requirements and Portuguese regulations.

The required documents are:

1. Passport. A valid passport and copies of all pages, including blank ones.

2. Proof of residence. Utility bills, bank statements, or official correspondence showing your current address, issued within the last three months.

3. NIF, or Portuguese tax identification number. This unique taxpayer number is mandatory for financial transactions in Portugal, including fund investments.

4. Portuguese bank account. Documentation confirming the opening of a bank account in Portugal, which will be used for the investment transfer.

5. Proof of funds. Bank statements, investment portfolio reports, business ownership documents, inheritance certificates, or other documents proving the legitimate source of your investment capital.

6. Completed and signed forms. Investment subscription forms, provided by the fund management company, along with anti-money laundering declarations and investor profile questionnaires.

Additional documentation may be required depending on the specific investment fund and your personal circumstances. Immigrant Invest experts specialise in Portuguese Golden Visa applications and will make sure that all paperwork is correctly prepared and submitted.

Investment in fund units is a feasible option for US citizens seeking Portugal Golden Visa. However, investors must follow several specific regulations to adhere to the US legislation.

Income taxes for US citizens. US legislation taxes all American citizens on their global income, irrespective of their tax residency. The US and Portugal have a double taxation agreement stating that Americans must pay taxes on their income in all cases.

In Portugal, the tax is paid only when the US tax rate is lower than that of Portugal. In such a case, the investor pays the difference to the Portuguese authorities.

Choosing a Portuguese bank to open an account. The IRS, the revenue service for the US federal government, requires foreign financial entities, such as banks and funds, to report to the US on assets held by their American customers.

Thus, to comply with US law when applying for a Portugal Golden Visa, an applicant from the US must open an account in a bank that submits reports to the IRS.

Passive Foreign Investment Company rules. US citizens investing in foreign corporations, which are classified as PFIC, must adhere to strict rules and reporting procedures.

A foreign company is classified as a PFIC if it satisfies one of the following criteria:

• income test — at least 75% of its gross income is passive, such as dividends, interest, royalties, or capital gains; or

• asset test — at least 50% of its assets are held for the production of passive income.

Most of Portugal investment funds for Golden Visa are considered PFIC, so applicants acquiring Portuguese residency must file a Form 8621. The form is submitted annually, reports the investor’s income, and calculates any applicable taxes under the PFIC rules. The form is filed even if no income was received.

As with any other investment, purchasing units of Portuguese private equity funds carries certain risks. Let’s break down these risks and how Immigrant Invest helps minimise them.

Market risk. This one includes economic downturns, changes in government policies, or poor market overall. We reduce it by selecting funds with diverse investment portfolios and monitoring economic trends by recommending funds with stable and long-term potential.

Liquidity risk. We minimise this risk by advising clients on funds with clear exit strategies, such as secondary market options or buy-back mechanisms, and selecting funds with a strong track record of managing liquidity.

Regulatory and legal risk. Changes in Golden Visa laws, taxes, or fund regulations can impact investments. To reduce this risk, we closely monitor CMVM regulations and government policies, keeping our clients informed of any updates. We also collaborate with top-tier legal experts to ensure full compliance with tax and visa requirements.

Fund management risk. A fund’s success heavily relies on the experience and competence of its fund manager. Poor decision-making could result in losses. We mitigate this risk by partnering only with reputable, CMVM-regulated fund managers with a proven history of delivering strong returns. We also thoroughly evaluate fund governance, investment strategies, and financial health before recommending any options.

Performance and return risk. Underperformance is always a possibility, potentially leading to lower-than-expected returns. We manage this by selecting funds with solid historical performance and transparent reporting. Our goal is to ensure investments align with realistic risk-return profiles tailored to each investor’s preferences.

Currency risk. Since investments are made in euros, fluctuations in exchange rates may impact the final returns if the investor’s home currency weakens. To minimise this, we advise clients on hedging strategies and multi-currency investment approaches, helping them assess their exposure to currency risks before making a commitment.

1. Greater diversification of assets. The applicant’s money is invested in various assets simultaneously. This reduces risks of losses and helps maximise profits.

2. Professional management of investments. The applicant does not need to search for investment projects, deal with contractors, or get involved in fund operations. The investor can generally forget about investments until the time the fund closes.

3. Return of investment. Investors can return their money in 6—10 years. In comparison, the return of business investments cannot be guaranteed as it depends on the company’s profits and success.

4. Tax optimisation. Dividends and capital gains aren’t taxed if the investor has a Portugal Golden Visa and is not a Portuguese tax resident.

5. Safety. Funds are registered with the Securities Market Commission, CMVM. Their activities are also regulated by the country’s Central Bank and the fund’s management company. The tax service also carries out regular audits. This allows investors to be completely confident in compliance with all legal norms and adhering to the chosen investment strategy.

Banele, 34

Furniture factory owner

Portugal Golden Visa for purchasing investment fund units

Banele, a successful furniture factory owner, was looking for more than just visa-free travel. He wanted a future where his children could grow up in a globally connected environment, with access to education and opportunities across Europe.

We helped Banele and his family obtain residence by investment through Portugal’s Golden Visa program. He chose to invest in the Blue Crow fund, known for its low-risk profile and focus on commercial real estate projects across Portugal.

The fund offered a 5% annual yield, the option for an early exit, and a projected 10% profit share upon its closure in 2028, making it both a practical and strategic choice for long-term financial and lifestyle planning.

Now, Banele and his family are well on their way to Portuguese citizenship, enjoying the freedom to travel, live, and thrive in the EU.

Learn a case

1. Portuguese investment funds pool capital to invest in assets like real estate, businesses, or stocks. These funds are regulated by the Portuguese Securities Market Commission, CMVM, ensuring compliance with investment strategies and legal norms.

2. Investing in Portuguese funds offers diversification, professional management, and the potential for tax optimisation, as non-residents are not taxed on dividends or capital gains.

3. Foreign investors purchasing units of Portuguese investment funds can qualify for the Portugal Golden Visa. To obtain the status, they must invest at least €500,000 and hold assets for 5 or more years. Approximately 50 out of 200 Portuguese funds meet Golden Visa requirements.

4. Investors and their families gain the right to live, work, and study in Portugal and can apply for citizenship after five years of residency.

5. US investors must adhere to IRS reporting requirements for Passive Foreign Investment Companies and annually submit a Form 8621 indicating their income generated from the fund.