Fund investment guide for real estate brokers

Being a top-tier broker and catering to the elite can be a tough ask. Finding the best the market has to offer, and ensuring it meets your client's financial needs, preferences, and objectives is a challenge; going above and beyond, however, is what makes a broker stand above the competition - enter VC funds in Portugal.

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Investing in a fund in Portugal isn't just an astute venture that brings about profits, but it goes the extra mile, providing your clients with an EU residence in the shape of the Portuguese golden visa.

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This guide will provide brokers with the information they need to expertly provide their clients with the details regarding Portuguese investment funds, how they can qualify them for the golden visa, and how it can benefit all parties involved.

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The golden visa

Portugal's golden visa is a straightforward residency by investment program. Applicants that make a qualified investment into the country's economy can obtain a residence permit for themselves and their family members. 

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After holding on to the investment for five years, and spending seven days each year in Portugal, they then qualify for permanent residence and citizenship.

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One of the eligible options open to applicants is an investment of 500,000 euros into an investment funds operating in Portugal. 

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Venture Capital funds

Portugal has an abundance of VC funds operating within Portuguese borders. All funds are overseen by the CMVM, a government entity responsible for the regulation, accountability, and supervision of all fund activity.

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Any CMVM recognized fund managed in Portugal and conducting at least 60% of its investment activity within Portuguese borders qualifies for the golden visa. However, not all investment funds are born equal, and choosing the right fund management company can prove highly beneficial. 

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Applicants invest 500,000 euros into a fund, which then allocates that capital to specific ventures. Investors can expect annual ROI and, depending on their nationality and place of residents, can apply for tax exemptions on that profit. 

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Investors can recoup their initial investment after a five year holding period, ensuring a smooth transition of their funds back to their bank accounts. 

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Funds as a golden visa investment option

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Investment funds are rapidly becoming one of the most popular investments under the golden visa umbrella; this is due to a variety of factors such as:

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• Easy to research - conducting due diligence on an investment fund is a very simple and quick task. Any third party, normally a legal or financial expert, can do the due diligence, and applicants can arrange this remotely without conducting site visits or various meetings.
• Easy to process - investing in a fund is also straightforward, as investors wire the money to the fund, and get a certificate of investment which then they use to qualify for the golden visa.
• Excellent exit strategy - unlike other investment options, such as real estate, liquifying a fund investment is an instant matter. After the holding period is complete, investors recoup their initial investment by having the fund management company wire them the 500,000 euros.
• Safe and secure - as funds are overseen by the government are highly regulated, they are outstandingly safe investment options.
• Passive profitability - funds are an excellent option for investors looking to make a profit while not having to actively manage anything. Funds have an average ROI of between 2-5%, but investors also have the option to increase or reduce profitability by setting their own risk parameters. 
• Lower taxes - profits gained through fund investments can be exempted from taxation depending on the nationality, place of residence, and tax treaties of the home nation of applicants. 
• Great diversification - funds give investors the option to expertly diversify their asset base through a safe, profitable, and passive option.

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An excellent option for everyone

Funds are one of the best ventures any investor can consider, and getting an EU residence permit with a path to citizenship makes VC investment funds in Portugal even more enticing.

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It is a win-win situation for everyone involved, as investors reap massive benefits, brokers save time and money trying to find a suitable investment, and the fund itself continues to grow and secure more benefits and profits for everyone involved.

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If you are looking to offer your clients Portuguese investment funds as their next great investment, contact us today to know more.

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