I am still trying to sue the AIMA to get a biometric appointment for my 1st card, but I am also considering to exit the whole GV thing all together.
My money has been tied up in the fund that only pays like 2-3% per year since 2019. If I cannot get back the money ASAP, is there a place where I can get some loan using my GV fund as a collateral?
I don’t know whether I can get the citizenship or not in the future. Even if I get the citizenship, what is the risk that Portugal may start to impose income/wealth/exit tax on non-resident PR and citizens? I guess the risk is tiny. But I am not sure if I can trust the Portugal political system after I went through all these bad things.
My experience is the only way to get a decent margin loan (ie LTV & interest rate) on a fund is to approach the custodian institution. Everywhere else will likely see it as too high risk for the effort / reward. Likewise if the custodian won’t likely nowhere will.
So that’s the place I’d start.
This makes me think of a good conspiracy theory: Portugal convinces a bunch of wealthy foreigners to become PRs or citizens, closes the GV program, then institutes wealth/exit taxes that wont apply to most native Portuguese.
Thank you! I will talk to my bank first. But my Portuguese bank relationship manager never replied to my email, just like my lawyers. I used to have an urgent problem of being locked out of my account, merely because of a minor stupid procedure of the bank, the manager simply ignored my cry for help.
They were all pretty responsive before I wired in the money.
I am not sure how long your fund’s term is. I guess that it is 8-10 years. You started in 2019, that means Fund will reach its maturity in 3 years (if fund has 8 years term). Instead of taking loan or find another way (which often even further complicates the problem in Portugal), you can start finding out the exit term of the fund. Make sure that you will not miss any condition to exit the Fund.
If you could obtain the resident card wihin 1-2 years and the new citizenship law helps GV, then it is worth to apply citizenship and keep the fund. At the end of the day, if you can exit the fund and preserve your capital, with 2-3%/year (16-24% over 8 years) i.e. about 56k to 84k over 8 years–> not bad at all. Of course it is not the best machine to generate yield. But the main target is to preserve your capital + some yield and the passport.
If it is just about yield without passport, no investor invests in any kind of Fund in Portugal.
My fund only gives me 1.5% yield yearly. But I am OK with that. Now looking forward to applying citizenship and exit the fund.
Why not apply for citizenship under the new law? You have to be close to the five years since application. Plus, everyone here would love to know if you get the certification from AMIA.
So far its value is 420k (20% gain from the original 350k). However the dividend is only 1.5%. I believe that the fund will preserve the capital and make a big chunk of profit (30%) over 10 years term. However, as said, only 1.5% yearly dividend is distributed to investors. The rest will be distributed to the fund’s managing team when fund reaches its maturity. My main target was preserve capital and passport, not about high yield. So, if I can exit the fund with 350k (my capital) and 40k (dividend over 10 years) + passport, I will be happy!!!
I would 100% take the hit on sunk costs and take my money back from the fund and get out of this mess if I could. However, I am in two different private equity funds (real estate and VC focused) and I don’t think there is really any natural way out of the fund unless you can find a buyer (which seems highly unlikely). Does anyone know of any angles to exit these funds?
Yeah!!! Bloody money!!! Managers know that whatever left after taking out the capital and dividend will be theirs. So they work harder to preserve the capital. If the fund fail to preserve the capital, managers get nothing. Very conservative fund.
If you cannot find a buyer, then you cannot exit. It does not make sense to me. Because your fund must have a fixed timeline i.e number of years that it is allowed to run. After a specific number of years, it must terminate. It cannot just keep looping itself forever.
For my fund, it is quite clear about the exit term and I’ve checked with fund’s managers. I only need to inform them within 30 days from the last General meeting of the Fund. Then they have maximum 1 year to return my money and it can be paid by several payments (not necessary by one transfer). It makes sense to me because the Fund might need times to liquidify its assets and then pay back investors. So partial payment is accepted as long as full amount is paid within 1 year.
New arrivals will benefit from 100% UK tax relief on foreign income and gains for their first four years
That’s actually pretty good, better than PT’s new NHR maybe. I guess the catch is to become a UK citizen you have to stay at least five years so you start paying the full tax
Only for non-domiciled UK residents, which was a very small group of very wealthy people. They have not introduced global taxation of UK citizens (seems to be much confusion on that point). There also looks to be some potential positive changes to IHT regime for non-residents who’ve left UK >10 years.
Well that’s certainly the message it sends. I was one of those who benefited from the old rules, hence taking NHR instead.
Uk’s loss Portugal’s gain
Hi live2learn,
We are thinking of embarking on this journey and our major concern is preservation of capital, not growth. Please could you advise on your experience and how safe you felt with your choice of investment? We are looking for something very conservative but I still feel nervous at the risk involved.
Many thanks.
