​Investment Funds vs. Real Estate

The Venture Capital Fund Participant:


• Direct investment on the Industrial, Commercial and Leisure infrastructure that present the best risk – return ratio in real estate;


• Diversification in various assets within the fund, minimizing risk of price variation on single asset and location;


• Opportunity to diversify in different asset classes available in the real estate market, minimizing the impact of price fluctuations and it’s cycles;

• Acquisition of fund’s shares by both individuals and corporate entities;

 

• Simplification of the succession process, purchase, sale or transfer of the UP between current and future participants;

• Investments are decided and monitored by Fund management professionals, there is no additional cost, included in management fee;

 

• Tax exempt for non-regular resident => 0% / Tax resident => 10%;

 

• No additional taxations on acquisition or sell;

• Costs included in the Funds;

• Tax exemption in the inheritance for descendants or ascendants;

 

• Donation from parents to children exempt from taxation.

​The Regular Residential Real Estate Asset:


• Direct investment in one or various residential real estate assets;

• Exposed to price variation on location;

• Exposed to price variation in one real estate asset class;


• Acquisition of entire asset by individual;


• Succession process can be less easy if various successors (indivisibility of asset);


• Own management option very risky for abroad investor;


• Contracted managers take up to 25% - 30% on income for rent maintenance and monitorization;


• Risk of rent non-payment as tenants are individuals with higher move-out flexibility than corporate entities;


• Information about the owner is not only limited to tax and supervisory authorities, but public and available at the building registry;


• Tax for non-regular resident => 25% / Tax resident => 25% - 28%;

 

• Municipal Tax on Transactions (on acquisition) => 6% - 8;


• Stamp Tax => 0,8%;


• Capital Gains Tax => 10%;


• Municipal Tax on Real Estate: 0,3% - 0,4% Yearly;


• Additional costs: Condominium, Maintenance, Insurance, Deed;


• Tax exemption in the inheritance for descendants or ascendants;


• Donation from parents to children subject to stamp tax;


• Constrained on availability of buyer, Golden Visa market facilitates the selling process;


• Constrained to Real Estate demand.

Contact us to obtain further information on the elegible Golden Visa Investment Funds in Portugal.

  • Golden Visa Portugal Investment Funds

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