Since October 8, 2012, the main rules governing the granting of the Residence Permit for Investment (ARI/Golden Visa) allow investors to obtain a temporary residence permit to carry out commercial activities without a visa to enter the territory national.
After 5 years (from the investment period) the Golden Visa holder can apply for a permanent residence permit in Portugal, as well as Portuguese nationality after six years.
On October 1, 2018, the change in the new types of investment came into effect, with regard to the Residence Permit for investment.
The 5 main benefits of obtaining a Golden Visa through a Venture Capital Fund are:
As an alternative to other investment routes, the venture capital fund has a low investment of €350,000 (until December/2021) and €500,000 from (January 2022) by subscribing to a participation in a venture capital fund;
The annual return variable and capital appreciation at the end of the fund’s life cycle (usually around 7 years), is usually more attractive than when compared to other program options;
Venture capital funds are professionally managed by specialists from each sector. In addition to being regulated by the Portuguese Securities Market Commission (CMVM) and the Bank of Portugal, they are audit annually by external companies;
Depending on the tax structure of the fund and investors, investing in a fund can generate significant tax efficiencies. For example, in the acquisition of UP’s in a venture capital fund, the investor will only have to pay a cost of around €1,000 to the Fund’s Management Company for the subscription. In real estate, you will have to pay taxes on transfers (IMT, Stamp Duty and Registration & Notary Costs), Furniture (approximately €20,000) and finally the property sales commission 5% VAT;
Investing in a venture capital fund is low risk as the investment is much more diversified. When the investor subscribes to Up’s of a certain fund, he is buying the participation of a company holds several real estate/movable assets. Investment risk is not just allocated to one asset, but to several. At least 60% of the fund’s portfolio must be invested in Portugal.
The Golden visa in Portugal is a fast and very attractive way for foreign investors from countries outside the European Union, to obtain a valid permanent residence permit in Portugal and also allowing free travel in countries located in the Schengen Area.
When we compare with other investments to obtain Golden Visa, we easily see the excellent benefits for a certain investor to choose their investment in a Venture Capital fund.