Portugal Could Cancel Golden Visa Approval of Certain Funds

Brittany Collins

Portugal has launched an investigation into several venture capital funds associated with its Golden Visa program. If irregularities are identified, funds can lose their Golden Visa licences and approvals tied to these funds could be impacted.

The investigation was triggered by complaints from lawyers within the sector, pointing to alleged malpractice in some qualifying funds.

According to Portugal News, certain funds under scrutiny have been offering "guaranteed buyback agreements" to investors. These agreements promise a full refund of the capital upon the fund’s maturity while securing permanent residency in Portugal.

The practice of offering guaranteed buyback is controversial, as it may violate the program’s investment risk requirements and compliance regulations. Portuguese authorities are examining the actions of fund managers and third-party promoters involved in these agreements.

Obtaining Portugal Golden Visa by fund investment has become the most popular pathway for the Portugal Golden Visa after the real estate purchase option was canceled in October 2023. To qualify, applicants must invest at least €500,000 in eligible funds and retain their investments for a minimum of 5 years.

Other investment options under the Portugal Golden Visa program include:

investments in research activities — €500,000+;
supporting arts and restoring cultural heritage — €250,000+;
business investments — €500,000+;
opening a company and creation of at least 10 jobs.

The Portugal Golden Visa program allows investors to obtain Portuguese residency for themselves, their spouse, dependent children under 26, and dependent parents. To maintain the residency status, investors must spend at least 7 days per year in Portugal.

Residence permits are issued for 2 years and can be extended indefinitely in 2-year increments. After 5 years, Golden Visa holders are eligible to apply for Portuguese citizenship.