Hello! After lurking/procrastinating for a couple of years, I have finally decided to look into the Portugal GV option more seriously. I recently came across the 168K Euros investment donation/ walk-away option from Holborn where you give Euro 168K to a financier and they invest Euro 500K in a GV eligible investment fund for you, for 7 years. Of course, you won’t get the $168k back nor get exposed to any losses/gains from the investment fund investment. Thoughts on this?
I am in the US - I don’t want to lock 500k post tax money for 7+ years. Think I’ll be able to cover Euro $168k in gains in the US
I would tread carefully here. You may need that money in the fund for more than 7 years.
There are source of funds requirements where the money should be transferred to your Portuguese bank account from your bank account outside of Portugal then into your investment. The money should be clearly yours…so how would they guarantee they are getting their 500k back if you are putting “your 500K” investment into a fund?
It is essentially a 5.1% interest loan with, I assume, all the lawyer and other fees covered? Could you take out a loan against assets to fund it yourself, but also confirm if Portugal does not want the source of funds to be a loan (i.e. the money is not yours)?
The financer is doing a leverage and making some decent money. I see nothing wrong in this deal as long as you are happy to begin with. Few things to consider:
Get a due deligence done from a GV specialized lawyer before putting in the amount (Check the list of reputed lawyers available in this website)
Make sure to sign a contract which guarentees you to have an access to 500K funds in your name until you obtain a PR or a PT nationality. With the new laws you are able to apply for a Nationality after 5 Years irrespective of when your First card gets issued.
Good luck and do your own due-deligence and internet isn’t an ideal place to ask for a Financial advice…