Capital transfer of the amount of 500 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation, whose maturity should be at least, of five years. At least, 60% of the investments need to be realized in commercial companies with headquarter in Portuguese territory.
The Portuguese Investment Funds
There are a number of benefits to investing in private equity funds to be eligible for the Portuguese Golden Visa.
The Portuguese Golden Visa Investment Funds are professionally managed by experts of each specific sector.
You can obtain your Portuguese Golden Visa permit from a minimum investment of 500 thousand Euros into an officially registered investment fund, until the 1st of January 2022.
Venture capital funds are a tax-efficient vehicle — dividends and capital gains returned to investors may be tax-exempt for non-residents in Portugal.
Depending on the Portuguese Golden Visa Investment Fund, they might offer a minimum return hurdle-rate usually between 1,5% and 11%, were managers might be compensated only in case the investment fund performance is above a certain threshold.
Some Investment Funds have the support of the Portuguese Government through subsidies or financed by the IFD.
The Portuguese Golden Visa Investment Funds are regulated and must comply with the rules stipulated by the Portuguese Securities Market Commission (CMVM). This means that fund managers are regularly audited by third parties.
To comply with the Portuguese Golden Visa Investment Funds legal requirements they usually have a maturity of at least 6 years. The Golden Visa Investment Fund is also obliged to invest at least 60% into companies which have their headquarter in Portugal.
An advantage of the Golden Visa Investment Fund is that compared to real estate you will not pay acquisition tax (around 6%) neither stump duty tax (0,8%) of the property value. By deciding to apply for the Portuguese Golden Visa through the investment fund compared to real estate acquisitions will save you a lot of time and legal fees.
Advantages of the Golden Visa Investment Fund application:
1. Possibility to invest directly into the Real Estate development market in Portugal.
2. Easiest and quickest way to be eligible for Portuguese Gold Visa, starting at 500 thousand euros.
3. All investments will be audited and evaluated by certified and independent companies.
4. Lower value that enables solid and good profitability investments in the Portuguese capital.
5. Assets diversification - it won’t exceed 1/3 of the portfolio focused on more than one investment.
6. Tax exempt on the withdraw for non residents and 10% for residents.
STEPS for the Golden Visa Investment Fund application:
1. The Management company will receive from the investor a KYC Form; Subscription Form and personal documents.
2. The Portuguese Golden Visa investor will obtain his Portuguese tax identification number (NIF) and open a Portuguese bank account (checking and securities account).
3. The investor will transfer the money from his foreign account to his Portuguese bank account.
4. The investor orders the bank transfer from his own portuguese bank account to the choosen Investment Fund bank account.
5. The Management company issues a declaration necessary for the Golden Visa application and the Portuguese bank issues two declarations (money transfer overseas and certificate of holding the Participation units (shares).
Note: US Persons (American citizenship or tax residents in the US) need to open their Portuguese bank account with a FATCA compliant bank. Example: Bison Bank, Banco Atlântico, Banco Carregosa.
Documents for the Golden Visa Investment Fund application:
1. Declaration of the Portuguese bank, attesting the effective transfer of the amount equal to or above the legally required.
2. Supporting document attesting the ownership of the units of investment from the Portuguese bank.
3. Declaration issued by the investment fund managers, attesting the feasibility of the capitalization plan, the maturity of, at least, five years, and the application of at least 60% of the investment in companies with head office in Portugal.
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