Portugal GV Fund Comparison?

Enquired SIF and got response from its sales rep PTgoldenvisa:
Purchase the SIF Investment Fund shares by transferring 350,000 EUR to the fund’s account + 10,000 EUR to the company responsible for the pre-approval of the investors in the fund;
It seems to me the 10K is sales rep fee. I am running away.

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Yikes. Well, so much for that.

That 10K “pre-approval of the investors in the fund” fee seems remarkable. :confused:

One question I have not seen being answered (perhaps it is self evident to the rest but me, so apologies then): these investments in PE funds are subject the capital gains tax in Portugal at 28%, aren’t they? Not only the tax itself but the application of it is my concern: is it applicable on realized or also unrealized gains? is it automatically deducted by the funds or is it my obligation to submit tax return to Portuguese government and make due payments?

Appreciate clarification or if a lawyer can raise his hand. Thank you.

The answer depends too much on your specific tax situation, what your citizenship and tax residency is, whether the fund qualifies under PFIC rules if US citizen, if you elect QEF if PFIC, and whether you invoke NHR. There just is no one answer.

There is another thread about US tax laws and PFIC as applicable to funds that you might want to read and this probably belongs there.

Whether it’s auto-deducted by Portuguese government I don’t know, though it’s still incumbent on you to file a tax return if applicable (which is also dependent on your specific situation).

Foreigners are not subject to Portuguese capital gains if you invest in these funds. Period. Confirm with a lawyer but I’m fairly confident in that answer and every fund I have spoken with is pretty clear on that. US citizens are open to taxation in the US on any gains however, so in the end you do pay. PFIC is a separate matter but again the Portuguese taxes are not an issue - it is a US issue.


Thanks for quick response and it is interesting. Essentially a foreigner is tax advantaged vs a local? :thinking:

Typically local taxes apply on local income whatever your personal tax residence is (such as with tax on rental income and sale of real estate object) and there is 28% capital gains tax in Portugal, hence my question.

To clarify, I am not a US citizen. So their issues do not apply to me.

There is a specific exemption for income derived from units in a VC fund. However, if the investor is resident in a blacklisted jurisdiction (under Portuguese law), he might not be able to benefit from this exemption.

  1. What happens to my Visa if Portugal GV Fund is dissolved because of some litigation / fraud investigation . Is my Visa still valid , or will that be deemed as non-fulfilment of 5 year investment criterion leading to cancellation of my Visa / making me ineligible to apply for citizenship,

  2. What happens to my Visa if Portugal GV Fund fails to meet the investment guidelines set for being a fund eligible for GV purposes. Let us say you decide not to invest at all and just stay in cash or invest a wrong proportion.

@drlward, we are just finalizing Portugal Opportunities Fund’s study for US Investors and have created some unique strategies that will assist you in making the leap forward. If you’re interested, let me know and I will book a meeting with our US Tax expert and he can explain.

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