Among those numbers, there are a high percentage of golden visa investors. Currently most golden visa investments are secured through investment funds.

These investment mechanisms possess three main aspects to consider:

  1. Fund’s compliance and eligibility for Portugal’s Golden Visa program.

    While legal opinions are not binding, those issued by certain types of entities, such as the Big Four or top law firms specialising in administrative law, can provide essential validation, as these are the same types of entities relied upon by regulatory authorities.

    When analysing different alternatives, investors should always request legal opinions from such entities to ensure that the fund’s bylaws comply with regulatory requirements and to confirm eligibility under the Golden Visa legislation, which has undergone multiple amendments in recent years.

  2. Buy-back mechanisms must be carefully assessed.

    Buy-back mechanisms are legally permitted, but their structure and implementation require careful scrutiny. These mechanisms must be explicitly detailed in the fund’s bylaws.

    Investors should avoid funds that rely on side agreements, letters, or third-party contracts, as these fall outside the scope of regulatory oversight and will require resolution through the Portuguese court system, disrupting the investor’s Golden Visa process and resulting in lengthy and uncertain legal proceedings.

  3. Important Considerations When Investing in Open-Ended Funds in Portugal

    Open-ended funds may appear attractive due to their flexibility. However, Portugal’s stock market is limited and illiquid, and the bond market is small with limited secondary trading, creating a potential mismatch between the timing of redemption requests and actual liquidity.

    For private equity funds, most do not include in their bylaws provisions that allow investors to sell their participation units to third parties. Without such clauses, and without support from the Management Company, investors will not be able to transfer their units, whether in part or in full.

To learn more about Golden Visa Portugal and the eligible funds, visit our LinkedIn page or visit us at www.magnifygvfunds.com

Discover Golden Visa Portugal-eligible funds:

https://magnify.partners/fund-management/ceres/ - CERES Food Retail

https://magnify.partners/fund-management/haven/- HAVEN Hospitality

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