More and more investors receive a residence permit in Portugal for the purchase of shares of investment funds
Buying shares in investment funds is gaining popularity: 100 investors have chosen the option to get a residence permit in Portugal in 2022. This is already 19% more than last year.
We tell you why investors are attracted by the option with funds and what else they have invested in.
Author •Vladlena Baranova
Head of Legal & AML Compliance Department, CAMS, IMCM
More and more investors receive a residence permit in Portugal for the purchase of shares of investment funds
236 applicants have invested in fund units over the 10 years of the residence permit program in Portugal. Of these, 100 people — in 2022. This is 19% more than in the whole of 2021.
100 investors
Obtained a residence permit in Portugal for the purchase of shares in investment funds in 2022
If demand continues, by the end of 2022 another 100‑150 investors will receive a Portuguese residence permit for the purchase of shares.
In total, 494 investors received a residence permit in Portugal in the first five months of 2022. Of these, 380 — bought real estate, 100 — invested in fund shares, 12 — chose the transfer of capital, two more people supported the culture and art of Portugal.
Every fifth participant in the residence permit program in Portugal chose to invest in fund units. Such a conclusion can be drawn if we average the statistics of the program for 2022.
Portugal earned €238 million from the residence permit program in the first five months of 2022. Of these, about €35 million fall on the option with the purchase of shares in investment funds.
Investors first started buying fund units in 2019. The demand for the option is growing every year: in the first five months of 2022, 100 investors have chosen to invest in funds. This is already 19% more than last year. Source: SEF Portugal
Investing in investment funds is the best way to get a "golden visa" of Portugal for investors who do not intend to permanently live in the country or do not want to buy property.
The minimum investment in funds is €500,000. You need to invest for at least five years, but more often the money is returned after 6‑10 years.
An investment fund is a financial company, its task is to attract and increase the capital of investors. The fund collects investors' money and invests it in selected assets:
residential or commercial real estate;
Portuguese companies;
industrial facilities;
European stock market.
Profit is distributed among investors minus the commission of the fund.
How many investors received a residence permit in Portugal
Golden Residence Permit Program is the Portuguese state residence permit program for investment. She has been working since 2012. Over 10 years, 10,748 investors and 17,752 members of their families have become participants in the program.
28,500 people
Obtained a residence permit in Portugal under the investment program
The purchase of real estate remains the most popular investment option for the residence permit program in Portugal. To obtain a residence permit in the country, investors buy real estate worth from:
€500,000 — residential and commercial;
€350,000 — objects that were built more than 30 years ago and are located in areas of renovation.
The minimum cost of real estate in sparsely populated regions is reduced by 25%. An object for restoration can be bought for 280,000 €, and a new one for 400,000 €.
9965 investors bought real estate under the residence permit program in Portugal for the period from 2012 to May 2022. Of these, 1213 investors chose objects older than 30 years for restoration.
Capital transfer is the second most popular option of the residence permit program in Portugal. For 10 years, 516 investors have chosen it.
Buying shares in investment funds is by far the third most popular option among foreigners who receive a golden visa in Portugal. But in terms of speed, this option is gaining popularity the fastest.
What does an investor get with a residence permit in Portugal
The opportunity to live in an EU country with your family. The investor has the right to include his relatives in the application for a residence permit in Portugal: spouse, children under 26 years old and parents over 65 years old.
Portugal is a European state with a high standard of living. The investor and his family will be able to permanently live, work and study in the country. As a resident of Portugal, the investor has the right to come to the country for leisure or business at any time, even with closed borders.
Visa-free travel within Schengen. With a residence permit card in Portugal, the investor will be able to visit the Schengen states without visas and stay in any of them for up to 90 days in half a year.
The prospect of citizenship in an EU country. After 5 years of owning a residence permit card, the investor will be able to immediately apply for Portuguese citizenship. A Portuguese passport gives you even more travel options.
Australia is one of the countries that you can visit without a visa with a Portuguese passport. In total, the number of visa-free destinations includes 187 states, including the USA, Canada and the UK
Opportunity to do business in a European country, to receive income from the rental of real estate, to keep capital in European banks.
Tax optimization. A new resident of Portugal can receive a tax holiday for 10 years and a special tax status Non-habitual resident.
Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to move to Portugal or travel around the Schengen countries without visas, please contact investment program experts for advice.
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