Portugal’s Golden Visa Investment Fund: Everything You Need to Know

Since Portugal ended the real estate investment option in its Golden Visa program, the venture capital fund option has become a popular choice. Here’s what you need to know about this Portugal Golden Visa investment fund and how it works.

Portugal’s Golden Visa is one of the most popular residency-by-investment schemes in the world, generating over €5.7 billion (US$6.9 billion) since its inception in October 2012 and allowing thousands of foreign investors to secure European Union (EU) residency.

While there are five different investment options for gaining the Golden Visa, opting for a Venture Capital (VC) fund is one of the most beneficial. 

Let’s explore the different Portugal Golden Visa fund options to help understand how you can grow your investment while gaining EU residence, and possibly citizenship, at the same time. 

Understanding Portugal’s Golden Visa

Portugal’s Golden Visa is a five-year residency scheme for non-EU nationals, providing incoming investors the ability to live, work and study in Portugal and an entryway to free movement within the EU Schengen area.

The most popular route has historically been the real estate pathway, but since the program changed in 2023, VC Funds have gained considerable ground as a viable option for foreign investments into the country.

In the face of the real estate option no longer being a possibility, there has been an increase in applicants turning to VC Funds as the turnkey solution to EU residency.

To qualify for the Golden Visa scheme, you need to be a non-EU, non-Swiss, or non-European Economic Area (EEA) national and have no criminal record.

A benefit of the Golden Visa scheme in Portugal is that there is a low-stay requirement. The incoming investor must spend a minimum of seven days in Portugal in the first year and at least 14 or more days in the following two years.

After five years of residency in the country, investors may qualify for citizenship provided they meet the requirements of a basic language test and show ties to the country.

Follow our complete guide to the Portugal Golden Visa for all the details on the program.

The Portugal Golden Visa Investment Fund

Investing in a venture capital fund is an eligible pathway for the Golden Visa Program in Portugal.

Venture capital is essentially a pool of investments managed by a group of corporate experts in the field. Portuguese VC funds are regulated by the local regulator, the Portuguese Securities Market Commission (CMVM), and offer a range of sector options, including real estate, renewable energy, industry and technology.

Each VC fund will have a defined investment strategy and will be regulated under its fund management agreement. 

According to Portuguese law, for a venture capital fund investment to be considered eligible for the Portuguese Golden Visa, it must fulfill the following three cumulative requirements:

1. Capital transfer amounting to a minimum of €500,000, intended for acquiring participation units of funds registered under CMVM and Portuguese law;
2. Have a holding period of at least five years.
3. At least 60% of assets must be invested in Portuguese companies.

The funds cannot be directly related to real estate. Of course, you can only invest in qualifying funds to gain the visa.

VC Fund Investment vs. Other Investment Options

Opting for a VC fund investment is a personal choice, as some will prefer to put their money into the other options. These include:

• Investing in the arts or reconstruction of national cultural heritage with a donation of at least €250,000
• Creating and maintaining ten jobs during the required period
• Making a cultural investment of €250,000
• Incorporating of a company or reinforcing a company’s share capital, in either case with an investment of €500,000. This will also require creating five permanent jobs or maintaining ten jobs (five of them permanent).

If you want to simply make a donation, you could contribute your €500,000 to science or technology research.

The option you choose really just depends on your interests and long-term strategy. However, for most savvy investors, putting their capital into a VC fund could yield the best returns.

 Portugal Golden Visa Fund Benefits

Here are some of the main reasons why opting for one of the Portugal Golden Visa funds is a good idea:

• VC Funds are regulated and must comply with the CMVM
• Are handled by qualified experts in the chosen fund sector
• VC Funds are tax friendly. Dividends and capital gains that are returned to the investor may be tax-exempt
• It’s a diversified investment option. VC Funds allow you to get exposure to a more diverse set of industries or a less saturated part of the real estate market
• Save time by investing in a managed fund.

Your Portugal Golden Visa Fund is a Key Consideration in Your Application

Note that not all VC Funds in Portugal will qualify for the Golden Visa program. You should ensure that your chosen VC Fund meets the criteria of The Portuguese Immigration and Borders Service (SEF) and that CMVM regulates the VC Fund.

The three most important questions to ask when deciding which investment fund to opt for:

1. Is the investment fund fully regulated by the Portuguese authorities (CMVM)?
2. Is the investment fund fully eligible for the Golden Visa program, according to SEF?
3. Does the fund have the necessary attributes to safeguard the investor’s Golden Visa status?

As mentioned, VC Funds will each have different processes and dynamics associated with them. Here are some of the due diligence checks that should be considered:

• The lifespan of the VC Fund: some will have a fixed horizon, such as six-ten years, whereas others are ongoing.
• The advisors of the VC Fund, their background, and experience levels.
• Leverage and liquidity: how is your investment used and how easily can it be converted into cash?
• Paperwork needed for the investment.
• Risk return profile.
• Preference on whether you want your VC Fund to have limited potential for capital appreciation but a safer investment profile, or vice versa.
• The investment thesis.
• VC Funds can offer an early exit but gains are realised after five-ten years, as a general rule
• Associated fees (subscription fee; annual management fee; fee to the fund manager at the time of exit; other associated costs).
• The VC Fund governance process.
• The exit strategy.
• The reporting strategy and the frequency of updates. 

It’s also important to add that it’s not possible to invest in the Golden Visa program using cryptocurrencies. Only euros are accepted, as the investment must be made through a bank account regulated by the Bank of Portugal.

Portugal Golden Visa Investment Funds

Of course, choosing the right investment fund is the trickiest part, as there are various good options available.

Here’s an overview of your investment fund options.

1. Arish Revolution Private Equity Fund (PEF)

• Investment Focus: Co-working spaces in Lisbon
• Risk: Low to medium
• Hold Period: 9 years, with buyback at market value minus 10%
• Returns: Approx. €70,000 in upfront dividends over 7 years (promo-based).

2. Tejo Solar Future Fund

• Investment Focus: Solar energy projects, including storage
• Risk: Varies (from low to high depending on asset type)
• Hold Period: Liquidation begins 24 months before maturity
• Returns: 4% annual dividends post-24 months; 8% IRR.

3. MedCapital

• Investment Focus: Portuguese private healthcare
• Risk: Diversified
• Hold Period: 10 years, targeting portfolio divestment by 2027/2028
• Returns: Expected 20% IRR; 2.6x invested capital.

4. TerraNova FCR

• Investment Focus: Agricultural land and agro-industrial ventures
• Risk: Low risk, risk-adjusted
• Hold Period: 8 years
• Returns: 8% target IRR; 5% dividend yield after year 3.

5. Optimize Portugal Golden Visa Opportunities

• Investment Focus: Multi-asset fund, primarily in Portuguese stocks
• Risk: High (Level 5)
• Hold Period: 5 years
• Returns: 10.6% annual returns since inception.

6. Portugal Liquid Opportunities Fund – Oxy Capital

• Investment Focus: Private equity and bonds
• Risk: Medium
• Hold Period: Open-ended
• Returns: 10% target IRR.

7. Green Insight I Fund – Insight Venture

• Investment Focus: ESG projects
• Risk: Medium
• Hold Period: Open-ended
• Returns: Expected returns exceeding 10%.

8. Sixty Degrees Ações Portugal

• Investment Focus: Listed equities in Portuguese companies
• Risk: Medium (Level 4)
• Hold Period: 3 years
• Returns: 19.5% average annual return if exited after 36 months.

9. Iberis Bluetech III

• Investment Focus: Innovative tech companies
• Risk: Medium
• Hold Period: 8 years
• Returns: Target 20% IRR, 7% hurdle rate.

10. Iberis Greytech Co-Investment Fund

• Investment Focus: Mid-market Portuguese SMEs
• Risk: Medium
• Hold Period: 8 years
• Returns: Target 15% IRR, 7% hurdle rate.

11. Sharing Education Fund

• Investment Focus: Education sector expansion
• Risk: Low
• Hold Period: 12 years, with a put option after year 6
• Returns: 7% IRR.

12. Pela Terra II Fund

• Investment Focus: Sustainable farming and land cultivation
• Risk: Low volatility
• Hold Period: 8 years
• Returns: 5% annual dividends + 2% land appreciation

13. Mercan Hospitality Investment Fund

• Investment Focus: Hospitality projects in Portugal aligned with Golden Visa regulations
• Risk: Low
• Hold Period: 6 years with a guaranteed 100% buyback upon Golden Visa or citizenship completion
• Returns: 2% annual fixed income, collectible after one year.

14. Lince Growth Fund I

• Investment Focus: Growth in industrial and circular economy sectors within Portuguese SMEs
• Risk: Low
• Hold Period: 8 years
• Returns: Growth capital 10-15%, debt strategy 0-2.5%, startup investments 10-30%.

15. CERES I Fund

• Investment Focus: Food retail development in Lisbon, Portugal
• Risk: Low
• Hold Period: 10 years
• Returns: Up to 4.5% annual gross income for Category C unit holders, IRR over 14% for other categories.

16. Blue Marlin Mediterranean Fund

• Investment Focus: Renewable energy companies across the Mediterranean
• Risk: Low
• Hold Period: 7 years
• Returns: Not specified.

17. BlueCrow Development Fund I, FCR – SubFund A – Portuguese Agrobusiness Fund

• Investment Focus: Agrobusiness, water efficiency, and forestry projects in Portugal and Africa
• Risk: Low
• Hold Period: 8 years.
• Returns: 3% annual dividend yield, 8% potential capital appreciation.

18. BlueCrow Development Fund I, FCR – SubFund B – Portuguese Entertainment Fund

• Investment Focus: Entertainment spaces, theme parks, and tech in Portugal
• Risk: Low
• Hold Period: 8 years
• Returns: 4% dividend yield, 8% capital appreciation.

19. BlueCrow Development Fund I, FCR – SubFund C – Football Strategies Fund

• Investment Focus: Football club acquisitions and development in Europe
• Risk: Low
• Hold Period: 8 years
• Returns: 20% potential capital appreciation.

20. BlueCrow Development Fund I – SubFund E – Finance Fund

• Investment Focus: Renewable energy infrastructure financing
• Risk: Low
• Hold Period: 8 years
• Returns: 8% annual dividend yield, 4% capital appreciation.

21. Indico VC Fund II

• Investment Focus: B2B tech startups (SaaS, AI, DeepTech) in Iberia
• Risk: Low
• Hold Period: 5-7 years
• Returns: 25% IRR target, 1.25x preferred return.

22. Mercurio Fund

• Investment Focus: Growth/buyouts of mature Portuguese SMEs/Mid Caps
• Risk: Low
• Hold Period: 7 years
• Returns: Mid-teens gross returns.

23. Prosper Harbor Fund

• Investment Focus: Debt/hybrid investments in Portuguese SMEs/MidCaps
• Risk: Low
• Hold Period: 6 years
• Returns: Mid-single-digit gross returns.

24. Kickoff Capital Private Equity Fund

• Investment Focus: Multi-club football ownership in Portugal
• Risk: Low
• Hold Period: 10 years
• Returns: 3% preferred return for Type B.

25. New Frontiers Energy Investment Fund

• Investment Focus: Private equity in early-stage solar projects in Southern Portugal
• Risk: Medium
• Hold Period: 7 years
• Returns: 10% per annum.

Golden Visa Funds Portugal: FAQs

Investing in Portugal’s Revamped Golden Visa Scheme

While Portugal’s Golden Visa program has dropped in popularity with the removal of the real estate option, investing in a VC fund can still be a great choice. Not only could you gain some attractive returns, but you’ll also get permanent EU residence at the same time. 

Of course, the major drawcard is that the Portugal Golden visa is a great way to fast-track Portuguese citizenship, giving you a convenient path to a valuable Portuguese passport. 

If you’re considering the Portugal Golden Visa program, navigating all of the different rules and investment options can be seriously tricky. 

At Nomad Capitalist, we’ve helped over 1,500 high-net-worth clients gain second citizenships and global residencies and navigate the offshore world. Get in touch with our team to see how we can help your Portuguese residency journey.