As Portugal tightens eligibility for Golden Visas, investment funds have emerged as the principal route for non-European investors seeking EU residency. This article explains how Portugal’s fund market compares with opportunities in the USA, Brazil and Turkey and why diversified, professionally managed funds can help investors meet residency requirements while achieving attractive risk-adjusted returns.
In 2024 Portugal ended the option to acquire a Golden Visa through direct real estate purchases, redirecting investors toward regulated investment funds. The minimum qualifying investment remains €500 k (held for at least five years) in a fund that deploys at least 60 % of capital in Portuguese assets, according to the latest legal framework. This shift has catalysed the launch of new funds with diversified strategies, from venture capital to corporate credit, giving investors choices aligned with their risk appetite and liquidity needs.
Golden Visa investors must now navigate a complex decision matrix. A sponsored feature by IMI Daily stresses that the defining choice is between closed-ended venture capital funds and open-ended investment funds. Venture capital funds offer higher return potential but require long lock-ups and carry higher risks. Open-ended funds, by contrast, provide daily liquidity and diversified portfolios. Some open-ended funds suffer from concentration in a narrow Portuguese equity market; therefore investors should review underlying assets carefully.
Pagani Capital’s own convertible bond fund (discussed in Convertible Bond Funds and Golden Visa: A New Investment Path in Portugal) offers a hybrid approach. It targets real-asset projects via secured bonds, providing regular income and the option to convert to equity if the project achieves valuation milestones. It thus combines the stability of fixed income with the upside of equity participation, aligning with Golden Visa criteria without overexposing investors to a thin equity market.
Compared with U.S., Brazilian and Turkish markets, Portugal’s fund environment provides the added value of European residency. U.S. real estate funds remain hindered by low liquidity and high borrowing costs. Brazilian funds are buoyed by a robust rental market and tax incentives but lack the regulatory certainty of EU supervision. Turkish property investments offer attractive yields and citizenship options yet involve macroeconomic volatility. Portuguese funds, particularly those backed by corporate bonds or real estate projects, offer moderate returns, strict oversight and a clear path to residency, making them appealing to family offices and wealth managers in the USA, Brazil and Turkey.
Readers interested in this topic can explore Open vs Closed Funds and Convertible Bond Funds and Golden Visa.
