Thinking about applying for Portugal’s Golden Visa through investment funds? It’s a great option—hands-off, regulated, and often more flexible than real estate. But with so many funds on the market, choosing the right one can feel overwhelming. 

From understanding fund types to evaluating risk and returns, this guide will help you navigate the process and make a confident, informed decision.

What is the Portugal Golden Visa Investment Fund?

The Portugal Golden Visa Investment Fund is one of the approved routes to obtain a residence permit in Portugal through capital investment.

Instead of buying real estate, you invest a minimum of €500,000 into a qualifying Portuguese fund—typically structured as a venture capital, private equity, or real estate-related fund. 

These funds are fully regulated and supervised by CMVM (Portugal’s securities market authority), ensuring transparency and investor protection. To be eligible, the fund must actively support Portuguese-based companies or projects, often in sectors like tech, healthcare, energy, tourism, or sustainable development.

This route has grown in popularity since the 2022 changes to the Golden Visa program, which shifted focus away from property toward investments that boost the local economy. 

Why investors like the Investment Fund Route?

It’s ideal for those looking for a passive, hands-off investment that still qualifies for the Golden Visa.

  • No need to manage property.
  • Lower taxes and fewer maintenance costs.
  • Fully regulated and often diversified across multiple sectors.
  • Still eligible for permanent residency or citizenship after 5 years.
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How to choose the Right Portugal Golden Visa Investment Fund?

Choosing a Portugal Golden Visa investment fund is a big decision, and the right choice depends on your risk tolerance, goals, and timeline. Here’s a simple breakdown to guide you:

1. Understand the Type of Fund

When investing in a Golden Visa fund, it’s important to understand both the fund structure and the investment focus. The structure affects your liquidity and timeline, while the investment strategy influences your risk and return.

Closed-Ended Funds

Most Golden Visa-eligible funds fall into this category. These funds have a fixed capital commitment, a set investment period (usually 6–10 years), and do not allow early withdrawals. Your capital is locked in until the fund reaches its maturity or exit point.

This structure is common for Private Equity Funds and Venture Capital Funds investing in private companies or startups, aiming for growth and higher returns over time. Since assets are typically illiquid and require time to mature or be sold, the closed-ended structure is essential for giving fund managers enough time to deliver value.

Open-Ended Funds

These funds are more flexible, allowing ongoing subscriptions and redemptions. However, they are less common for Golden Visa purposes due to potential liquidity risks, changing portfolio composition, and more complex compliance. Always confirm that an open-ended fund is CMVM-regulated and Golden Visa approved before considering it.

Portugal Golden Visa Investment Fund

2. Check the Track Record & Strategy

Before committing to any fund, it’s essential to do your homework on the fund manager and their investment approach. This isn’t just about numbers—it’s about trust, transparency, and alignment with your goals.

Track Record

Start by reviewing how long the fund manager or management company has been operating. Have they successfully launched and exited previous funds? Look for evidence of consistent performance, especially during volatile market periods. Experience in the Portuguese market is a plus, as it indicates local expertise and strong networks.

Investment Strategy

Understand what the fund aims to do with your capital. Is it aggressively targeting high-growth startups, or is it more conservative, aiming for steady income through stable sectors like hospitality or logistics? Some funds reinvest earnings, while others focus on capital preservation. Make sure their risk profile and timeline match your own expectations and Golden Visa residency goals.

Transparency & Portfolio Examples

Ask for a detailed investment memorandum or fact sheet. A reputable fund should be able to show examples of current or past investments, typical deal sizes, and exit strategies. This gives you a clear view of where your money will be allocated—whether it’s tech startups, eco-tourism projects, or commercial developments.

Ultimately, you’re not just investing for returns—you’re investing for residency and peace of mind. The right fund should offer both.

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3. Portugal Golden Visa Compliance

Investment Requirement

To qualify for the Golden Visa, your investment must be at least €500,000. This amount must be fully paid in (not leveraged or financed) and maintained throughout the 5-year Golden Visa period. Some funds may allow for higher contributions or offer co-investment options, but €500,000 is the minimum threshold for eligibility.

Structured for Golden Visa Applicants

Make sure the fund is specifically designed to accommodate Golden Visa investors. This means they will:

  • Provide the necessary subscription documents and proof of investment for your AIMA application.
  • Offer clear compliance reports and updates to help you maintain eligibility.
  • Support you with the required legal and administrative documentation, either directly or through partner legal firms.
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4. Exit Strategy & Timeline

When choosing a Portugal Golden Visa investment fund, it’s essential to understand how long your money will be tied up—and more importantly, how and when you’ll get it back. This isn’t just about investment returns; it also needs to align with your immigration timeline.

Lock-In Period

Most funds have a lock-in period of 6 to 10 years, meaning you won’t be able to withdraw your capital before that time. This duration usually reflects the lifecycle of the fund, especially for those investing in real estate developments or startups, which need time to mature or be sold. Make sure you’re comfortable with that level of liquidity—or lack of it.

Exit Strategy

A reputable fund should provide a clear and realistic exit plan. Will they sell underlying assets? Take companies public? Repay investors through cash flow or refinancing? Look for specifics—not just vague promises. A strong fund will outline how and when they plan to return your capital, and whether any buy-back options or secondary market solutions exist.

Alignment with Portugal Golden Visa Timeline

Your goal is to maintain the investment for at least 5 years to qualify for permanent residency or citizenship. So, the fund’s holding period should not end prematurely, nor should it lock your money in long after you’ve met the Golden Visa requirements—unless you’re fine with the extended timeline. Ideally, the fund will time its exit strategy to align with your residency goals, offering flexibility after year 5.

5. Investment Fund Fees & Taxes

Understanding the cost of investing is just as important as analyzing returns. Portugal Golden Visa investment funds come with various fees and potential tax implications that can impact your net gain—especially if you’re coming from a country with complex tax rules like the US or UK.

Fund Fees

Most funds charge two main types of fees:

  • Management Fee: Typically 1% to 2% per year, calculated on the amount invested. This covers operational costs, fund administration, and portfolio management.
  • Performance Fee: Usually around 20% of profits above a set benchmark or hurdle rate. This is meant to incentivize the fund manager to deliver strong returns, but it’s important to understand exactly how and when it’s calculated.

Some funds may also charge entry or exit fees, or pass through certain legal, admin, or audit costs to investors. Always ask for a full fee breakdown and compare it with similar funds to ensure you’re getting good value.

Tax Considerations

Taxation depends on your residency and citizenship, as well as the structure of the fund. Key points to consider:

  • US investors may face extra scrutiny due to FATCA regulations, and should ideally avoid PFICs (Passive Foreign Investment Companies), which can be heavily taxed in the US.
  • UK investors might be subject to capital gains or income tax on distributions, depending on whether they invest via an offshore structure or through a local tax wrapper.
tax in Portugal

Get Independent Advice With Us

Before making a €500,000 investment—especially one tied to your residency—it’s critical to get independent, unbiased guidance. 

While fund managers and agents can provide helpful information, remember that many are incentivized to promote specific funds, often earning commissions or referral fees.

Independent Fund Introducer

At Portugal Residency Advisors®, we act as your neutral, independent advisor, helping you navigate the fund landscape without any commission bias. 

We do not promote or push any single fund—instead, we evaluate multiple options based on your goals, risk tolerance, and long-term plans. 

Our role is to guide you through a transparent decision-making process, offering expert insight while working solely on your behalf.

Experience Immigration Lawyers

A team of experienced immigration lawyers is essential to ensure the fund is truly Golden Visa compliant, and that all supporting documentation—proof of transfer, fund subscription certificates, and declarations—is properly submitted to AIMA (Portugal’s immigration authority). 

We also coordinate with the fund and your bank to make the application process smoother.

Neutral Experts

We are not directly affiliated with any Portugal Golden Visa Investment fund. Be cautious of agents who push only one or two options or can’t clearly explain how they’re compensated. 

True independent advisors will help you compare multiple funds, highlight risks, and explain both the legal and financial implications of your decision.

For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.

Frequently Asked Questions About How to Choose a Golden Visa Investment Fund

The minimum investment is €500,000 into a qualified Portuguese investment fund that’s approved for the Golden Visa program.

Only funds regulated by CMVM (Portugal’s securities authority) that invest in Portuguese-based businesses or projects—such as venture capital, private equity, or hospitality-related sectors—are eligible.

The investment is typically locked in for 6 to 10 years, depending on the fund. While some funds aim for a return of capital after the minimum holding period, liquidity is not guaranteed, so it’s important to understand the exit strategy.

Yes, many funds offer dividends or profit-sharing, depending on the performance of their portfolio. However, returns are not guaranteed and vary based on the fund’s strategy.

Yes—Golden Visa-compliant funds provide the necessary subscription certificates, investment proof, and declarations for your AIMA application, usually in coordination with your lawyer.

Yes. The main applicant can include spouse, dependent children, and even dependent parents in the same application, without needing to increase the investment amount.

Absolutely. In fact, many of our clients are from the US, UK, Canada, South Africa, and Australia, using the fund route as a more passive and simplified alternative to buying property.

A closed-ended fund has a fixed investment period (usually 6–10 years) and doesn’t allow early withdrawals. It’s the most common structure for Golden Visa-eligible funds, especially those in private equity or venture capital. An open-ended fund allows ongoing investments and redemptions, but it’s less common for Golden Visa purposes and may not meet compliance requirements.

​No, as of October 2023, real estate investments (directly or indirectly) are no longer eligible for Portugal’s Golden Visa program. This change was implemented under the “Mais Habitação” law, which removed both direct property purchases and investments in funds with real estate exposure from the list of qualifying options.