INTRODUCING YOU TO AN ALTERNATIVE TO THE PORTUGAL GOLDEN VISA
The most popular route has become the investment fund option whereby individuals can obtain a Golden Visa, by investing into a Portuguese Venture Capital Fund.
- The investment does not trigger taxes similar to the ones that a client needs to bear when acquiring a property, such as transfer tax (on average 6%), stamp duty (0.8%), or the annual municipal tax (between 0.3% and 0.5%);
- It is considerably lower compared to the level of investment required by other investment routes for a Golden Visa (Eur. 350,000), especially now with the changes to the real estate route;
- The investment is made into a Portuguese fund that is heavily regulated by the Portuguese authorities – the Portuguese Securities Market Commission (CMVM), Bank of Portugal, the external Fund Manager and the Tax Authorities – and, in addition the fund will be audited;
- It is a tax-efficient investment, where several benefits are granted (for instance, the exemption of withholding tax on the payment of the income generated by the fund to the unit holders when they are not tax residents in Portugal);
- Requires a very light “footprint” in Portugal, allowing a quick exit from the investment if needed. The reason for this lies in the fact that each fund has a dedicated 3rd party fund manager that, besides controlling the fund and reporting to the Portuguese authorities, takes care of the payments to the fund units and assists, should there be the need to sell the owned units;
- Besides having a Licensed Fund Manager, Venture Capital Funds have to be licensed by the Regulator as well, in this case, the Portuguese Stocks Market Regulator (“CMVM – Comissão do Mercado de Valores Mobiliários), thereby presenting this as a high regulated market whereby the Regulator’s role is of the utmost importance.
- The potential gains generated by this investment are substantially higher than any other investment route for the Golden Visa.
The above demonstrates why Venture Capital Funds are on the rise when it comes to choosing an investment that will accomplish the goal of providing the family with the opportunity to live in Portugal and with the freedom to travel within the Schengen Space and which can also be a very interesting investment at a time where interest rates in Europe are at their lowest
PROPERTY VS FUND COSTS
|PRIVATE EQUITY FUND||PROPERTY|
|Title Transfer Fees||0%||6,5%|
|Registration and Notary Cost (Approx.)||0%||0,2%|
|Exit Fees (Est.)||0%||5%+VAT|
|Lawyer fees (Est.)*||€2,000||10,000|
|Golden Visa Taxes**||€29,086||€29,086|
|TOTAL INVESTMENT (EST.)||*381,086||**627,336|
*Legal advisor fees may vary in accordance with different service providers.
** Government charges for two applicants only – does not include legal and consultancy fees.
A Golden Visa allows an individual to:
- Travel through the Schengen area visa free
- Access to the Portuguese public healthcare system
- Qualify for citizenship after five years
- Enjoy certain tax benefits, such as being exempt from offshore income tax, withholding tax and capital gains tax
- The Golden Visa may be combined with the NHR (Non-Habitual Tax Program), a tax program for individuals that may grant certain tax benefits
This immediate alternative option for the Golden Visa with all the uncertainty at the moment is a great option especially as one can apply without even having to travel to Portugal. As travel has been disrupted don’t waste another year, contact us NOW for more information