Hello folks! As with most people on the internet, I turn to it to help understand or find out information.
In a nutshell, my wife and I have been working hard to save, and received an inheritance that allowed us to start the Golden Visa process. It has been exhausting to say the least, but a few months back everything seemed to be going swimmingly. Invested in Liquid Opportunities and our application payment has been accepted (I think we’re waiting on AIMA appointments now)
Today I receive an email from Oxy Capital (the normal people I have been corresponding with) that due to an audit, “in order to ensure your investment remains fully compliant with the applicable regulations”, we have to show proof of over $1,000,000 in assets or proof of an annual income of $200,000 or $300,000 if filed jointly with spouse.
These were not requirements to sign into the GV, or at least they didn’t say so when we sent all our documents which at the time of acceptance did NOT meet either of those conditions.
Anyone have any idea what this could be? Is it the sign of some terrible shakedown coming up? FWIW, we now do have assets over $1,000,000, including the GV investment, but despite my polite typing, I am VERY VERY annoyed at what seems like a change of rules that no one mentioned at ALL while going through the process.
Thank you. That clears SO much up. I’m glad I’ve found this forum and gotten some great information from it.
I’m not sure how or why it matters, but it is still a little annoying that it wasn’t brought up until AFTER the investment has been made. It may not even be an issue either way, but at least I have the answer as to why these specific amounts are desired.
Portugal doesn’t require you to be an accredited investor to apply for a golden visa, however depending upon the way the fund is structured they may need to prove any American investors are accredited for SEC compliance. These rules aren’t nefarious and are primarily intended to protect investors.
I imagine this shouldn’t be a big deal for most people pursuing a golden visa - investing almost $600,000 into one (likely underperforming) fund seems foolish if that’s 2/3 of your liquid assets.
I got some clarification through my .. liason? that’s coordinating everything. It is indeed an SEC thing. However he verified that the fund I’m in should not require this. Either way, we can be ok, but it made me think how crappy it would be if it WAS 2/3 of our net worth.
As per rules constantly changing on me? I mean, like anyone, I’m not a fan (I don’t think many people LIKE it), but I’m fairly laid back and as long as ultimately I can retire somewhere in Portugal, and spend my time playing music, and teaching/volunteering to help kids play music, I’ll be a happy clam. If the rules change on how long that takes, it’s ok’ish, but if the rules change to where I can NEVER do that, well then I will be VERY unhappy. And I shall take my knowledge and volunteering spirit ELSEWHERE!
I don’t know the finer points of laws around accredited investors, I just recognize the SEC limits and understand that there are some circumstances where a foreign fund may be required to abide by them if they want to work with USA investors.
I’ve completed accredited investor paperwork before, and I was surprised that Oxy didn’t have me complete it. However, there are lots of SEC rules that only get triggered under certain circumstances (usually the number of investors). The ‘33 act rules generally apply if you are targeting US investors, which they are.
They asked for proof of income for one year over those thresholds, but that isn’t the law. It’s that income in the last two years was above it and you have an expectation to make above the threshold again.
