I’m currently looking for an open-ended fund to use for my Golden Visa application. I’ve been considering BPI, and I’m quite satisfied with it, but during my research I noticed that it has 2% exposure to real estate.
Does anyone know if this is still acceptable under the Golden Visa requirements?
Also, I’m considering IMGA, which currently has no real estate exposure. But what if, during the five-year holding period, they decide to include real estate in the portfolio? In that case, would I need to withdraw and reinvest in another qualifying fund?
Lastly, if anyone can recommend a lawyer or law firm familiar with open-ended funds and the Golden Visa process, I’d really appreciate it.
The law allows “transferência de capitais no montante igual ou superior a 500 000 €, destinados à aquisição de partes de organismos de investimento coletivo não imobiliários, que sejam constituídos ao abrigo da legislação portuguesa, cuja maturidade, no momento do investimento, seja de, pelo menos, cinco anos e, pelo
menos, 60 % do valor dos investimentos seja concretizado em sociedades comerciais sediadas em território nacional”
I would personally be very surprised if a fund with 2% in real estate was regarded as other than a “investimento coletivo não imobiliários”, although the term is not defined either in the law or the regulations. But ask your lawyers.
Art 42-R(1)(c) of the Regulations suggests that the fund management company certifies compliance with the rules. Perhaps BPI would be able to confirm that they are issuing such certifications for ARI investors?
By the way, I assume you’re not a US person - we think BPI is ineligible for US investors due to FATCA issues.
@cj807 Thank you so much for your reply. Your posts on this website have been so helpful and inspiring to me. I truly appreciate the time and effort you’ve shared.
Yes, it’s saying that this (BPI FIAA) particular fund has 0% exposure/investments in real estate while other similar funds (those in the same category) invests an average of 2% in real estate. So the column on the right is a comparator and does not describe what the fund was invested in.
I’m interested, however after speaking with my consultant, I found out that Optimize indirectly invests in real estate through banks, which includes exposure to mortgages and REITs. Please consult your lawyer regarding this. By nature, open-ended funds can sometimes invest indirectly outside your control and may exceed their stated scope — so caution is advised.
Right now, I’m deciding between Oxy and other options. Oxy, to me, feels like a literal pillar — if anything were to happen to them, it could seriously destabilize the entire Portuguese Golden Visa framework, much like Lehman Brothers did (not in terms of practices, but in terms of systemic impact and influence)
