Why invest in Investment Funds?
What are Investment Funds?
Investment Funds are financial products that bring together a group of investors who pool their money to invest collectively in the financial and capital markets, benefiting from the advantages of joint investment.
The returns are distributed among the participants according to the proportion of the amount invested by each one.
Who controls the investment?
The management and allocation of the capital invested in the fund are the responsibility of the Management Company, whose role is to ensure compliance with the fund’s objectives and protect the investors’ interests.
The Management Company analyses market trends and carries out investments based on the sector, theme, geographic area, etc., in which the Fund intends to operate.
What costs are associated with Fund management?
Fund management by the Management Company usually entails an annual fee ranging from 0.5% to 2%. This is a key factor to consider before investing, as these costs can impact the fund’s overall return.
What are the main benefits of an Investment Fund?
- Easy investment process;
- Diversified financial product, reducing risk;
- Access to the expertise and experience of fund managers;
- Greater financial capacity to invest collectively in asset classes that may be difficult or impossible to access individually;
- Tax is withheld at source upon redemption. When applicable, investor gains are taxed at 28%, with immediate withholding.
What obligations are associated with an Investment Fund?
Fund Management Companies are supervised by the Portuguese Securities Market Commission (CMVM). They must comply with regular reporting obligations. In case of bankruptcy, investors’ capital remains protected, and the CMVM will appoint a replacement Management Company to ensure continuity of operations.
What are the investment requirements for the Golden Visa?
To qualify for residency, the investment must meet all of the following criteria:
- Minimum investment of €500,000;
- The investment cannot be made in real estate funds;
- The Fund must have a maturity of at least 5 years at the time of investment;
- At least 60% of the investment must be made in companies headquartered in Portugal.
What criteria should I consider when choosing an Investment Fund?
- Confirm eligibility for the Golden Visa and compliance with legal requirements;
- Understand the fund’s asset types, sector and geographical focus;
- Assess the experience and capability of the fund managers;
- Be aware of all subscription and management costs;
- Transparency regarding expected returns;
- Fund characteristics (open/closed, maturity, etc.).
What is the procedure and timeline to obtain the Golden Visa?
1st Step: Application submission on the ARI Portal
The residency application must be submitted online via the ARI Portal.
At submission, an applicant profile is created and all supporting documents must be uploaded, including:
- Valid criminal record certificate, certified by Portuguese diplomatic or consular authorities;
- Statement from a financial institution confirming the international transfer of funds;
- Investment documentation issued by the Fund.
After submission, the application enters a pre-approval analysis phase, which may take between 18 months and 2 years.
Family members may submit their applications simultaneously with the main applicant.
Fee: €618.20
2nd Step: Residence Permit Appointment
Once the main applicant receives the pre-approval notification and an appointment slot becomes available, they must attend an appointment at AIMA. During this appointment, the original documents previously submitted online are presented, biometrics are collected, and the Golden Visa approval fee is paid.
Fee: €6,179.40
3rd Step: Final Approval
AIMA reassesses all documentation to approve the issuance of the residence card. This stage may take an additional 6 to 12 months.
What are the quantitative and time requirements of the Golden Visa?
Once the residence card is issued, the main applicant and their family members are subject to quantitative and temporal requirements. The holder of the residence card is obliged to maintain the investment for a minimum period of 5 years and is also subject to minimum periods of stay in the national territory:
- Year 1: at least 7 days (consecutive or non-consecutive)
- Each subsequent 2-year period: at least 14 days (consecutive or non-consecutive)
Family members are subject to the same minimum stay requirements.
Planning to invest or relocate to Portugal?
At Lamares, Capela & Associados, we have extensive experience with Golden Visa and immigration processes. We can help you with:
- Preparing all documentation
- Supporting your immigration appointment scheduling
- Ensuring compliance with all legal requirements
- Obtaining a Portuguese tax identification number
- Acquiring Portuguese nationality after residency
Contact us and invest in Portugal safely and without complications.