Key Takeaways
- Fund investments are now the main route to the Portugal Golden Visa, with a minimum commitment of €500,000 into qualifying Portuguese-regulated funds.
- Eligible funds must be regulated by CMVM, invest at least 60% of their capital in Portuguese companies, and maintain a minimum five-year maturity.
- Private equity and venture capital funds offer different risk and return profiles, with asset-backed strategies often appealing to investors focused on capital preservation.
- The Golden Visa grants Portuguese residency and visa-free travel within the Schengen Area, while current rules require 10 years of residency before most applicants can apply for Portuguese citizenship.
- VIDA Capital supports investors through the full fund selection and Golden Visa process, from strategy discussion to introductions to legal partners. Speak with VIDA Capital’s advisory team.
Understanding Portugal Golden Visa Investment Fund Requirements
Fund investments for the Portugal Golden Visa must follow clear rules set by Portuguese authorities. Qualifying funds are registered under Portuguese law, regulated by CMVM, focused on company capitalization, and structured with at least five years of maturity.
The program also sets a geographic allocation rule. At least 60% of the fund’s capital must be invested in Portuguese companies, so investor capital supports the local economy while gaining exposure to Portugal’s business environment.
Capital must stay invested. The minimum €500,000 investment must be maintained for at least five years, matching the Golden Visa temporary residency period.
The market for eligible options is relatively narrow. Roughly 50 out of around 200 Portuguese funds meet Golden Visa criteria, so careful validation with both AIMA and CMVM is important before subscribing.
Types of Eligible Investment Funds: Venture Capital and Private Equity
Venture Capital Funds: Growth-Focused Strategies
Venture capital funds typically invest in early-stage companies in sectors such as technology, healthcare, and broader innovation. These funds must be regulated by CMVM and managed by licensed managers, which adds a layer of oversight for Golden Visa investors.
Risk levels are generally higher with venture capital. Returns depend heavily on company growth, so these funds often suit investors with a higher risk tolerance and a longer-term, growth-oriented mindset.
Private Equity Funds: Asset-Backed Investment Approaches
Private equity funds usually target established companies and often use operational improvements and strategic repositioning to build value. Many Golden Visa-eligible private equity funds focus on asset-backed strategies, where tangible assets provide an additional layer of security. Some of these funds manage portfolios that exceed €1 billion, which can indicate institutional processes and governance.
VIDA Capital advises investors who prefer asset-backed private equity opportunities in Portugal’s hospitality sector. The VIDA Fund buys and transforms underperforming hospitality assets, giving them a second life through renovation and operational repositioning. The fund does not build hospitality assets from the ground up; it acquires existing ones and works to improve them.
This approach can support capital preservation. Physical hospitality assets hold intrinsic value that can potentially be realized through a sale, rather than relying solely on cash flow projections. Historical returns for this type of strategy, including the VIDA Fund, are not a guarantee of future returns.
For tailored guidance on this fund category, contact VIDA Capital’s advisory team.
Due Diligence Process: Evaluating Fund Eligibility and Management
Initial due diligence focuses on confirming that a fund genuinely qualifies for the Portugal Golden Visa. Investors should verify that the fund is:
- Registered and supervised by CMVM
- Explicitly structured to meet Golden Visa requirements
- Compliant with the 60% Portugal allocation rule and minimum five-year term
Management quality is another key factor. Fund lifecycles typically run for six to ten years, with investors participating as Limited Partners, which limits liability to the committed capital. A strong track record in the target sector can help reduce operational and execution risk.
The teams behind the VIDA Fund bring experience in acquiring, renovating, and optimizing hospitality assets, with more than €4 billion in assets collectively managed across over 100 private equity deals worldwide. This type of background can matter when the strategy depends on both asset quality and operating performance.
Each investor should also confirm that the investment thesis fits their profile. Key points to review include:
- Target sectors and asset types
- Risk and return objectives
- Planned exit routes and timelines
Financial Considerations and Investment Process
The headline investment is at least €500,000, but several additional costs apply. Common fund-related charges include:
- Subscription fees, often up to 3.5%
- Annual management fees, usually around 0.5–3%
- Setup or structuring fees, often 2–3.5%
VIDA Capital emphasizes cost transparency and clearly presents all fees associated with the VIDA Fund, including a 1% subscription fee.
Legal guidance is essential. A Portuguese lawyer typically assists with obtaining a Portuguese Tax Identification Number (NIF), opening a local bank account, preparing documentation, and submitting and following up on the Golden Visa application. VIDA Capital can introduce investors to specialized law firms experienced in Golden Visa work.
Non-resident investors are often able to benefit from a 0% tax rate on certain investment income from qualifying funds, subject to their personal tax situation and home-country rules.
The overall Golden Visa process usually spans 12 to 18 months from application submission to issuance of the first residency card. As the approval card issuance usually takes a year, you will most likely only need to do a single renewal instead of two in the 5-year period.
For support through these steps, reach out to VIDA Capital.
Maintaining Your Golden Visa Investment and Renewal Requirements
Golden Visa investors must keep the €500,000 fund investment in place for the full five-year temporary residency period. Selling or reducing the investment below the threshold can put the residency status at risk.
The Golden Visa grants Portuguese residency and allows visa-free travel within the Schengen Area for up to 90 days in any 180-day period. Residency rights apply only in Portugal during this stage.
Portugal requires a relatively light physical presence. Golden Visa holders must spend at least 14 days in Portugal every two years, which makes the program suitable for families that want a Plan B without relocating.
Once approved, investors receive a temporary residence permit valid for two years. This permit must then be renewed for two additional two-year periods, while maintaining both the investment and the minimum stay requirements throughout the five-year span. As the approval card issuance usually takes a year, you will most likely only need to do a single renewal instead of two in the 5-year period.
After five years of temporary residency, investors can apply for permanent residency in Portugal if other criteria are met. For citizenship, a legal change in October 2025 extended the general requirement to 10 years of residency. Nationals of Portuguese-language countries (CPLP) and EU citizens benefit from a reduced requirement of seven years. Once citizenship is granted, holders gain the right to live, work, and study across the European Union and Schengen Area.
Comparing Investment Fund Characteristics
|
Fund Type |
Investment Focus |
Risk Profile |
Capital Preservation |
|
Venture Capital |
Early-stage companies, innovation |
Higher risk, higher potential return |
Lower, depends on growth |
|
Private Equity |
Established companies, often asset-backed |
Moderate risk, more stable profile |
Higher, due to tangible assets |
|
Hospitality-Focused |
Tourism and hospitality assets |
Moderate risk, sector-specific |
High, backed by physical properties |
Historical returns, including those of the VIDA Fund, are not a guarantee of future returns.
Frequently Asked Questions
What makes an investment fund eligible for the Portugal Golden Visa?
An eligible fund is registered under Portuguese law, regulated by CMVM, focused on company capitalization, and structured with at least five years of maturity. It must invest at least 60% of its capital in Portuguese companies and accept a minimum €500,000 subscription from Golden Visa investors. Only venture capital and private equity funds that meet these conditions qualify.
Can I diversify my €500,000 investment across multiple eligible funds?
Diversification is allowed as long as the combined amount invested in qualifying funds is at least €500,000. Each fund must individually meet Golden Visa rules, and the full amount must remain invested for the required five-year period.
How do asset-backed funds differ from other eligible options?
Asset-backed funds invest in companies that own physical assets, such as hospitality properties. These assets provide an extra layer of security because they can potentially be sold to recover capital. The VIDA Fund follows this model by acquiring and transforming existing hospitality assets in Portugal.
What ongoing obligations do I have after investing?
Golden Visa investors must keep their €500,000 fund investment, satisfy the 14-days-every-two-years stay requirement, and complete each renewal with updated documentation and biometrics. Monitoring fund performance and staying aligned with legal requirements are continuing responsibilities.
How does Portugal’s Golden Visa compare with other European residency options?
Portugal currently offers one of the only European paths to citizenship that does not require full relocation, as long as the residency and timeline requirements are met. Spain no longer offers a Golden Visa program, and Greece requires at least seven years of living there and paying taxes before citizenship becomes possible. Portugal’s combination of fund-based investment, modest stay requirements, and eventual access to citizenship keeps it competitive as a long-term Plan B.
Conclusion: Using Funds as a Structured Path to Portuguese Residency
A clear view of eligible investment funds helps investors align Portugal Golden Visa goals with risk tolerance and capital preservation needs. Fund-based rules favor well-structured, professionally managed vehicles, which can suit investors who prefer a regulated framework over direct property ownership.
Asset-backed strategies in Portugal’s hospitality sector, such as those pursued by the VIDA Fund, combine exposure to a key national industry with the security of underlying physical assets. With disciplined due diligence, experienced legal support, and a long-term outlook, eligible funds can serve as a structured way to pursue Portuguese residency and, over time, a potential route to citizenship.
To review whether this path matches your objectives, connect with VIDA Capital for personalized advisory support.
