Hello all. I’m looking at a GV for my wife and myself. Has anyone done the 1 million euro transfer instead of the real estate or VC fund route? Any information on that experience would be most welcome
Thanks in advance!
Michael
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One thing to look out for is the bank you choose to open an account with, as each bank may have different requirements regarding the investments you can make once the funds have been deposited.
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I am also very curious about this 1 mil Euro transfer option.
According to statistic, many GV applicants have selected this option, but there is almost no discussion/talk about it.
I have several questions regarding this option and it would be highly appreciated if someone can give the answers:
- One mil Euro can be transferred to multiple bank accounts ? or it is restricted to only one account ?
- After transfering 1 mil Euro, obtaining the bank statement, applying for GV, and finally having the GV card in hand. Am I allowed to use 1 mil to do whatever I want ? For example, I would take 1 mil (or just 100k-300k) to purchase some properties which are not dedicated to the golden visa, or I would use 1 Mil to open a business in Portugal. Then after 2 years for the initial card, I will have to renew my GV, and I will have to show bank statement with 1 Mil. This 1 Mil can be taken from the profit of my business or from the properties re-sell. In case my business does not bring profit, then I will transfer some more money from oversea to the bank account in Portugal just to top up the amount until it reaches 1Mil, then apply for the renewal GV. All these are permitted ?
Hope that someone that has experienced with this can give some answers.
Thanks in advance !
I think there is a reason for the lack of discussion, no broker or real estate agent makes money in this process.
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I’m not sure that’s correct. Having spoken with an attorney the fees aren’t that different.
You do need to have the 1M Euro all in one bank account for the full five years. Another option is to establish your own company and put the 1M Euro in that. THen you can invest in other assets out of that entity. Not sure the tax implications.
Another point that I hadn’t known is that if you plan on living in Portugal that the D7 is a much cheaper and easier path forward. GV is good if you want to only have to come a short time each year
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Yeah, I think so too. But it is a bit too extreme when there is nothing at all about this option !
I understand your point. If it is permitted to make investment via my own company, then it is still excellent though. I would not mind to open a company which I am a sole owner.
My plan is to obtain Portuguese citizenship (100% sure) and to live for entire 05 years (not sure 100% ) in Portugal.
Thanks !
Thanks! Appreciate it
Hi, I’m looking at this too and all the details are explained on the Immigration Authority website. Here’s a link to the document that provides details of what you can invest in and the obligations of the bank you select. https://imigrante.sef.pt/wp-content/uploads/ARI_alinea1_Pedido_EN.pdf
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Hi Michael,
Yes we had a client doing that. The only issue is that if you are a US citizen you can’t open the acconut in any bank as not all are FATCA compliant.
The reality is no commission earned from those opting to transfer one million Euros to a Portuguese bank 
. For those with high liquidity this is the best option. It’s the same as having the funds sitting in a bank account in your home country only that this time its opening doors through the GV. The lawyers and agents must justify their fees and the real estate deal ensures this. You will still need a lawyer when you are disposing the property so there is incentive to funnel you to the real estate option. Quite frankly, GV process is not sophisticated as we are meant to believe, SEF checklist seems straight forward.
I will probably hire a young and dynamic lawyer or an intern with excellent English skills to translate the documents needed and make calls to SEF to schedule the biometric appointment. I like control over my affairs, so I would not sit back and sign a power of attorney so some law firms that are too busy and not enthused to meticulous follow up my application and I would have to beg them at my cost for an update every other day.
If find the lawyers in Portugal to be pushy and the ones I have interacted with seem to suggest there is no other except the real estate. What if am not interested to invest in the overpriced real estate deals? I am yet to find a good lawyer who is willing to listen to my needs as a client. If a deal is 500K approximately 50k-100k is a mark-up for commission, especially those tailored for GV investors. On top of that one must pay taxes of approximately 30k. The total sunk costs from the get go is 130K. So, if you have one million Euros, park it in a Portuguese bank account for five years and acquire the PR.
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@qwerty
Assuming it is 5 years, then that is one thing. Consider that due to lack of visibility in biometric appointments the 5 years may be in reality 7 or 8 years. The opportunity cost of $1.22M over 8 years at no or minimal returns should be an eye-opener.
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@anon16151502 You have a valid point. The choice of parking the one Million Euros in a Portuguese Bank for 5-6 years is in my view a lesser evil. 
The investment options on the list are not attractive for a savvy investor, the ‘expected’ ROI is at best marginal or non-existent. I got fed up with the sales pitch of the various options, I quickly realised the devil is in the details. I reckon perhaps the test maybe ‘how much are you willing to risk in exchange for the GV?’ Take the funds option, you are tethered to a fund for six years or more. What if at some point, say at year two of GV application, personal circumstances changed, prompting one to discontinue the GV application? The same would apply for a real estate deal. You would be stuck with an overpriced house that would be difficult to liquidate. These factors make the bank deposit an attractive option.
On the bureaucracy surrounding the GV process and the difficulty in obtaining a biometric appointment, I think the process is designed to be slow. It would be great to speak to a retired/former SEF official to gauge the general attitude of SEF towards GV applications. The EU commission frowns upon the residency and citizen by investment programs. Press corner | European Commission
Don’t forget bank solvency risk. You’re well above the EUR100k depositor guarantee limit, there, and bank failure is a realistic risk in latin-arc countries. 
Some of the investment options aren’t too bad. That said, what the “savvy investor” accepts as a good investment is quite subjective to the investor in question. But agreed liquidity is a significant issue. I suspect it’s not as bad for the true-PE funds, but terrible for the GV-focused ones. And you’ve hit on what some of us think is the right viewpoint, what are you willing to risk/pay for the GV. Varies for everyone.
I am curious what you can do with the EUR1mm. Presumably you could at least buy gov bonds. Would they let you invest in .pt companies? Or…? Having cash sitting in a bank in the country does help solvency ratios a bit but its net benefit to the economy otherwise seems rather limited.
All of this is somewhat elusive. There is a requirement that you maintain the investment for 5+ years and presumably you have to prove this to SEF at each renewal. If you invest in art and 5 years later they remove the art installation, do you still qualify? Same with the 1M investment. If the bank goes out of business, how do you show proof that the investment is still there?
At least with a fund you have shares of the fund. They may be worthless but they are still shares to prove you still have the investment. Same with physical property. The house may be destroyed but you still have a deed.
@anon16151502 There art option is like a donation so from a risk point of view its on paper the least risky. However, it is only applicable if you are willing to donate the 250k. The donation route is similar to what Malta program offers but with a cheaper entry price point.