Act now: minimum investment for Portuguese Golden Visa Funds to increase to €500,000

First introduced in 2012, the Portuguese Golden Visa Residence Permit (GVRP) provides qualifying non-European Union investors and their families with full rights to live, work and study in Portugal with an average minimum stay requirement of only seven days per year.

The GVRP also offers visa-free access throughout the Schengen zone under the 90/180-day visa-free stay rule and, after five years, gives holders the right to apply for permanent residency or citizenship in Portugal.

This year, the Portuguese government announced that the GVRP rules in respect of the minimum qualifying investment amount under the Golden Visa Funds option were to be amended. As of 1 January 2022, the minimum investment amount required to qualify for the GVRP via an investment fund or venture capital fund will increase from €350,000 to €500,000.

To qualify, the investment fund or venture capital fund must be registered in Portugal and have at least 60% of its capital invested in Portugal.

Investing into a Portugese-regulated qualifying investment is the most cost and tax efficient option available to international investors who intend to apply for the Portugal GVRP and currently offers the following benefits:

• Minimum investment requirement of €350,000
• A fully managed solution
• Regulated by the Portuguese Securities Market Commission (CMVM)
• A range of assets classes to choose from
• No initial property transfer tax (IMT), stamp duty, land registry or conveyancing fees
• 0% tax applicable to the purchase or sale of units
• 0% income tax rate for most non-tax residents of Portugal
• Only 10% income tax rate for tax residents of Portugal

Although Sovereign is not able to provide investment advice relating to qualifying investment funds, we have complied a panel of qualifying investment funds that are managed by Portuguese-regulated investment managers.

Sovereign Group has a long-established office and team based in Portugal, which means that we are very well placed to assist clients with all requirements in-house. This enables us to minimise costs and ensure that the process is completed in a timely and efficient manner.

Please contact us to discuss your personal requirements, investment options or to request further information and detailed quotations.