Portugal Golden Visa Investment in Venture Capital Fund or Property
Who chooses Portugal?
Are you interested in investment in Portugal, the third most peaceful country in the world in 2019, but you doubt about buying a property in this heated property market? Well, the good news is that there is another opportunity.
Since 2009, more than 15,000 Investors and their families have already made investment in Portugal, place where entrepreneurs, businessmen and women, movie starts, singers and designers have recognized as a distinct piece of heaven on earth.
Portugal appeals to foreign investors for many reasons including:
- Tax advantages: Portugal has improved several regulations since 2014 including Corporate Tax Code in order to comply with the international standards and Tax Benefits, in line with recommendations from the EU and OECD.
- Non-habitual residence: The investor will be legally able to eliminate his taxes on most foreign-sourced income as a non-habitual tax resident. He will have even the right to stay in Portugal more than 183 days a year.
- Low minimum Stay: If investors do not plan to spend much time in Portugal while they are waiting for citizenship, they are only supposed to stay there an average of seven days per year to maintain the residence.
- Access to EU: Meantime, as a resident of Portugal, the investor will have the right to live and work in any of the EU countries.
- Free Travel: According to the Passport Index, Portuguese passport is the sixth most powerful passports in 2019. The holder of this passport can travel freely to 167 countries.
Portugal’s Golden Visa offers more than one option
One of the investment routes which is the most in-demand option is the acquisition of real estate with a minimum value of €500,000.
The popularity of this method has led to a considerable increase in the value per square meter. In the first quarter of 2019, House prices rose 3.3% compared to the last three months of 2018; settling at €1,849 per square meter. This is a growth of 17% year-on-year, this number has encourages the investors and families to look to other investment alternatives. The other investment option that has a considerable place in the statistics, is the investment into Venture Capital Funds.
This investment method was introduced by the Portuguese Law 2017 as below:
“Capital transfer of the amount of 350 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, the investments is realized in commercial companies with head office in national territory”
Investment into Venture Capital Funds is an alternative that has some special advantages comparing other investment options – depending on investors’ purpose:
- This investment route does not contain tax similar to the ones that the client needs to bear when acquiring a property, such as the transfer tax (average 6%), stamp duty (0.8%) or the annual municipal tax (between 0.3% and 0.5%);
- It is significantly lower compared to the minimum investment required by other options (€ 350,000.00);
- The investment is made into a Portuguese fund that will be completely regulated by the Portuguese authorities – Bank of Portugal, the Portuguese Securities Market Commission (CMVM), the external Fund Manager and the Tax Authorities – besides being constantly audited. This level of discipline will convince the investors that the fund will conform to Portuguese legislation and also to the business plan approved by the unit-holders, and that the fund targets are achieved;
- It is really a tax-efficient investment, where various advantages are granted, specifically if the unit-holders are not tax residents;
- It will leave a light “trace” in Portugal, with possibility of a quick exit from the investment if necessary. Each fund has a 3rdparty fund manager who controls the fund and reports to the authorities. He will check the payments to the fund units and will help them in case there is the need to sell the owned units;
- The prospective benefits generated by this method are remarkably higher than other investment options.
If your final investment destination is Portugal and you like to choose the option that suits you best, please contact our experts in UAE, Denmark or Canada, they will do their outmost to guide you through your Investment and Portugal Residency by Investment process.