Welcome to the world of Portugal Golden Visa Investment Fund funds. The Portuguese residency by investment program has gain significant popularity among international investors seeking to obtain residency and ultimately citizenship in this vibrant European country.
One of the most effective ways to qualify for the program is by investing in approve Golden Visa investment funds.
Whether you are an experiences investor or just starting your investment journey, it is essential to equip yourself with a solid understanding of the terminology associates with these funds.
What are Portugal Golden Visa Investment Fund?
The investment fund option for the Portugal Golden Visa was implements through an amendment to Portuguese Law no. 102/2017, enact on August 28th, 2017 with the following characteristics:
- Capital transfer of the amount of €500.000 or higher
- Acquisition of units of investment funds or venture capital Portugal fund of funds dedicated to the capitalization of companies, capital injected under the Portuguese legislation
- Maturity, at the moment of the investment, is, at least, of five years
- At least 60% of the investments are realizes in commercial companies with head office in the national territory.
Glossary for the Portugal Golden Visa Investment Funds?
US Citizens: Key Considerations of Portuguese Golden Visa Investment Funds
Investing in a Portuguese Golden Visa investment fund can be an attractive and tax-efficient way for American investors to obtain EU residency – but there are some important US – specific considerations to keep in mind:
1. Fund Structure (US Friendly)
Many Portugal Golden Visa investment funds are designed with US compliance in mind. However, not all are. Look for funds that are:
- US tax-reporting compliant (typically structured as LPs, not offshore corporations)
- Not classified as PFICs (Passive Foreign Investment Companies), which can trigger complex and unfavorable US tax reporting
- Offering regular K-1 reporting or Form 1099 equivalents (ask the fund manager directly)
2. Tax Reporting & Compliance
- US citizens are taxed on worldwide income, regardless of residency.
- Be cautious of PFICs — these can result in punitive taxation and complex IRS filings.
3. FATCA & FBAR Requirements
- The Foreign Account Tax Compliance Act (FATCA) requires disclosure of foreign financial assets if they exceed certain thresholds.
- The FBAR (FinCEN Form 114) must be filed annually if total foreign accounts exceed $10,000.
- Most Portugal-based funds are FATCA-compliant and will assist with proper documentation.
4. Residency, Not Portuguese Citizenship
- The Portugal Golden Visa offers residency, not EU citizenship directly.
- After 5 years, you may apply for permanent residency or Portuguese citizenship, with minimal stay requirements (averaging 7 days per year).
- Portugal allows dual citizenship, but always check your US obligations when acquiring a second passport.
5. Exit & Repatriation
- Ensure the fund has a clear exit strategy,
- Confirm how and when profits will be distributed — and how they’ll be reported to the IRS.
- Plan ahead for repatriating profits to the US, including any local Portuguese withholding taxes (which may be creditable against U.S. taxes).
Why work with us for your Golden Visa application?
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Holistic Approach
One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your investment and Golden Visa application.
Transparent Service
We recommend what’s best for you base on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.
Simple Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. And we are customers ourselves and we know how to serve you.
