Hello. I’m initiating the process of golden visa by investment in Portugal. After much online research, and with the assistance of an immigration attorney, it looks like the following funds are good options (i.e. - have good track records):
Does anyone have direct experience with these funds to comment on their viability? Also, I’m interested in placing some money in government bonds. Does anyone know if bonds meet the golden visa criteria? If so, any specific recommendations or guidance would be appreciated. Thanks in advance.
I have a C2 fund and have been happy with the management/performance. Good communication and smart deployment of the capital.
If I was doing this all over again, I would probably invest in an open-ended index fund. First, there is less to do (private equity requires you to attend meetings and read the documents so you can vote on management proposals). Second, at the rate AIMA is moving, you may need to hold the investment for a long time. I am not certain what some PE funds will do if the investor needs to be invested for 11 years or more (although, I am certain they are smart enough to do something good with the money).
Also, if US investor, make sure the investment will give you a PFIC. Don’t presume, be certain.
I’m pretty happy with Oxy. I like that the fund invests 60% in publicly traded Portuguese and 40% in other European companies. I did half of my investment with them.
Yes, I have checked into the historical commentary section but the information I found was several years old so I was looking for more recent reflections.
Also, if funds “only” need to be 60% in Portugese companies, can’t the other 40% be in bonds? It has been suggested to me that this is possible, not common, but possible. Thank you.
I went with Optimize Portugal Golden Opportunities Fund (their qualifying GV fund). They were very helpful and easy to work with. Their fund design is clever and already includes a healthy allocation to bonds (currently in the 20+% range). They are a truly liquid open-ended fund (purchases and redemptions in days). If you live in certain countries, you do not need to open a Portuguese bank account. Optimize will handle their needed declaration and Optimize’s bank will provide the bank declaration. Optimize also can issue an annual PFIC statement for this fund.
They do NOT have a “performance fee”, which only truly aligns investor and management interest if it were to apply on the upside and downside, which I don’t think exists.
For the GV application, you need a bank declaration that the funds for the GV investment came from outside of Portugal. Optimize has a specific bank account used for client funds and their bank will provide the bank declaration that you need (the bank provides their declaration to Optimize and then they provide it to you). I believe that this process is only available if you live in certain countries though.
@Grant_A Have you interviewed/met with anyone from these funds? Before I made my investment, I met with representatives from several different companies over Zoom. It’s a good chance to get a feel for the investment and the people running it.
Also, you can split your investment, if you like. I went with funds from two different companies. It’s a little more KYC (know your client) paperwork up front, maybe an extra meeting via Zoom a year, and one extra letter showing your investment. However, it is a good way to diversify risk because these investments will need to sit for 8 to 10 years.
Hi Greg, thanks for the information. A couple of questions if you don’t mind: Did you work with Golden Visa service like GCS, Holborn, etc. or did you invest directly in the fund? If direct, did you use a Portugal-based financial advisor? How far along are you in the process? Thanks!
Hey Ethan,
I bought a Golden Visa package from Novomove which includes the legal work.
I don’t think the Golden Visa package is available yet on the website under the Novomove Visas tab, but ask them about it. I used Novomove for my NIF and plan on using them to open my Portuguese bank account that can be used as a day to day bank there. Philip at Novomove did an in-depth review of the Optimize Portugal Golden Opportunities Fund which helped cement my decision. I have had very good experiences with Novomove and their services.
I had an e-meeting with Optimize directly and did invest directly with them, without the need to open a Portuguese bank account. Optimize is very accessible, very helpful, and very easy to work with. In addition, their PGOF has a clever portfolio design that I liked.
My lawyer has submitted my documentation on the AIMA system, but we have been unable to pay the Analysis Fee (with the DUC AIMA generates). Apparently this is an AIMA system problem according to discussion elsewhere on NomadGate.
My understanding is that once my Analysis Fee is paid, my lawyer will then be able to submit my wife’s documentation/application.