Key takeaways
- Portugal’s Golden Visa now relies on qualifying investment funds instead of personal properties, with a minimum investment of €500,000 in eligible funds in 2026.
- Venture capital, private equity, specialized hospitality, and diversified funds each offer different risk and return profiles for Golden Visa investors.
- Asset-backed strategies that acquire and improve hospitality businesses can combine capital preservation with exposure to Portugal’s tourism economy while staying within current rules.
- Golden Visa investors must plan for a multi-year residency journey, including a 12 to 18-month application process, at least five years to permanent residency, and 10 years of residence before eligibility for citizenship under the current framework.
- VIDA Capital advises investors who wish to pursue the Portugal Golden Visa through the VIDA Fund’s asset-backed hospitality strategy; contact VIDA Capital to discuss your situation.
The Evolving Portugal Golden Visa: Why Funds are Now Primary
The Portugal Golden Visa program changed significantly in October 2023 and reshaped eligible investments. Direct purchases of personal properties no longer qualify, and the focus moved to professionally managed investment funds that meet strict regulations.
The current minimum investment requirement stands at €500,000 in qualifying funds as of December 2026, a major change from earlier property-based routes. Investors now select among regulated funds, benefit from professional management, and must assess risk, fees, and strategy carefully.
Funds now represent the main passive route that can combine potential returns with residency rights in Portugal. This structure removes the burden of buying and managing property while keeping the program attractive for international families who want a Plan B residency without relocating full-time. Portugal remains competitive, as the program only requires an average of 14 days in the country every two years.
Portugal also stands out among European residency programs. Spain no longer offers a Golden Visa, and Greece requires seven years of living there and paying taxes to qualify for citizenship. Portugal is currently one of the only countries in Europe that offers access to citizenship without relocation, although Golden Visa holders must still meet stay requirements and follow the standard naturalization rules.
1. Venture Capital Funds: Investing in Portuguese Innovation
Venture capital funds focus on small and medium Portuguese companies with strong growth potential. Portfolios often include technology, biotechnology, renewable energy, and other innovative sectors across the country.
These funds must meet specific Golden Visa requirements, including a minimum maturity of five years, investment of at least 60% of capital in eligible Portuguese-based companies, and regulation by the Portuguese Securities Market Authority (CMVM). This framework supports program integrity and adds an additional layer of investor protection.
Venture capital funds can offer higher potential returns but also carry higher risk. Investors become Limited Partners, with liability limited to their investment amount. Careful due diligence on the management team, track record, sector focus, and diversification is essential before committing Golden Visa capital to this type of fund.
2. Private Equity Funds: Strategic Growth in Established Companies
Private equity funds within the Portugal Golden Visa program focus on more established private companies. Strategies usually aim to create value through operational improvements, strategic repositioning, and business growth rather than early-stage innovation.
The €500,000 minimum investment requirement applies to private equity funds, which must also remain under CMVM regulation and allocate at least 60% of capital to Portugal-based companies. These conditions help align fund activity with the Portuguese economy while preserving investor safeguards.
VIDA Capital advises investors who use the VIDA Fund, a private equity vehicle that acquires and revitalizes undervalued hospitality businesses throughout Portugal. The fund buys existing hotel assets and gives them a second life through targeted upgrades, design improvements, and operational changes. This asset-backed approach provides tangible collateral in the form of hospitality properties while aiming for value creation through active owner-operator management.
3. Specialized Sector Funds: Focus on Portugal’s Thriving Hospitality
Specialized sector funds target specific industries and have become an important option for Golden Visa investors. Hospitality-focused funds are prominent in Portugal because of the strength of the tourism sector.
Portugal’s tourism sector shows strong performance, with 31 million visitors in 2024 generating €27 billion in revenue. This result highlights the sector’s scale and continued relevance for the wider economy. The hotel market remains fragmented, which creates opportunities for consolidation by operators with local knowledge and operational expertise.
VIDA Capital’s fund follows this specialized approach through its “Giving Hotels a Second Life” strategy. The VIDA Fund acquires existing hospitality assets and transforms them through repositioning, design, and stronger operations. This integrated owner-operator model seeks to control value creation while providing asset-backed exposure to Portugal’s tourism demand.
4. Diversified Investment Funds: Balancing Growth and Stability
Diversified investment funds use broader strategies that may combine elements of venture capital and private equity across multiple sectors of the Portuguese economy. This structure can moderate risk through diversification while staying aligned with Golden Visa rules.
These funds must remain under CMVM regulation and accept the €500,000 minimum investment, with at least 60% of assets focused on Portuguese companies. Managers can then allocate across sectors and company stages, seeking a balance between stability and growth.
Diversified funds cannot invest directly in property under current regulations. They can, however, invest in companies that own and operate property-backed businesses such as hospitality groups. This distinction allows access to asset-backed exposure while preserving compliance. Investors gain professional portfolio management and broader risk distribution across several holdings.
5. Essential Due Diligence for Portugal Golden Visa Funds
Thorough due diligence remains critical when evaluating Portugal Golden Visa funds, given the size of the investment and the long commitment period. Funds must maintain government supervision and allocate at least 60% of capital within Portugal, and only about 50 out of 200 Portuguese funds currently qualify for the program.
Regulatory verification is the first step. CMVM registration and compliance help ensure oversight and basic investor protections. Investors should then review the management team’s experience, fund strategy, governance, and historical performance. The VIDA Fund team brings global experience, including several billion euros in assets previously managed and many private equity transactions executed in different markets. Historical investment returns are not a guarantee of future returns.
Fee structures also require attention, as they directly affect net outcomes. Management fees typically range from 1 to 2% annually and may include performance fees that depend on meeting agreed benchmarks. Subscription commissions up to 3.5% may apply as well.
Investment horizon considerations include the mandatory five-year minimum maturity and maintenance requirement for Golden Visa funds. Diversification within a fund’s portfolio provides important risk mitigation, which is especially relevant with a long holding period.
Frequently Asked Questions (FAQ) About Golden Visa Funds
What is the minimum investment for the Portugal Golden Visa through funds?
The current minimum investment is €500,000 into qualifying investment funds. This threshold reflects the rules that apply after the October 2023 changes that removed personal properties from the list of eligible investments. The capital must remain invested for the duration of the required residency period.
Can these funds invest in property?
Current Golden Visa regulations do not allow qualifying funds to invest directly in property. Funds such as the VIDA Fund can invest in companies that own and operate hospitality assets, including hotels. This approach offers asset-backed exposure through operating businesses rather than direct property purchases.
Are all Portuguese investment funds eligible for the Golden Visa?
Only a limited number of Portuguese funds meet Golden Visa requirements. Funds must be regulated by the CMVM and allocate at least 60% of capital to Portuguese companies. Roughly 50 out of 200 Portuguese funds currently qualify, which makes fund selection and due diligence especially important.
How long do I need to maintain the investment?
You must maintain the investment for at least five years to meet Golden Visa rules, and the fund itself must have a minimum maturity of five years. Golden Visa holders first receive a temporary residence permit that is valid for two years, then renew for two additional two-year periods while keeping both the investment and stay requirements. At that point, you can apply for permanent residency. 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.
Under the current citizenship framework approved in October 2025, applicants must reside in Portugal for 10 years before qualifying for citizenship. Nationals of Portuguese-language countries and EU citizens have a reduced requirement of seven years. The new law should apply to all Golden Visa applicants except those who have already submitted their citizenship application before the new law is published.
Why is the hospitality sector a common focus for these funds?
Portugal’s hospitality sector benefits from strong visitor numbers and tourism revenue, supported by steady international demand. The fragmented nature of the hotel market creates opportunities for specialist operators to acquire and improve underperforming assets. Funds like the VIDA Fund seek to give hotels a second life by purchasing existing properties and enhancing their operations, which provides both an asset-backed base and potential for operational upside.
Conclusion: Partnering with VIDA Capital for Your Portugal Residency Plan
The Portugal Golden Visa via investment funds offers a structured way to secure Portuguese residency in 2026 while maintaining a diversified investment strategy. The overall process usually spans 12 to 18 months, so advance planning, complete documentation, and a clear investment choice are important. An experienced Portuguese immigration lawyer is essential to prepare your application, handle submissions, support biometrics and renewals, and protect your position under evolving regulations.
Golden Visa residency allows you to live, study, and work in Portugal and to travel visa-free within the Schengen Area for up to 90 days in any 180-day period. The Golden Visa grants residency rights only in Portugal, not across the European Union. Once you secure Portuguese citizenship, you gain full access to live, work, study, and use public healthcare and education in any EU or Schengen Zone country.
VIDA Capital supports investors who want to combine an asset-backed hospitality strategy with the Portugal Golden Visa. Through the VIDA Fund, investors participate in acquiring and improving existing hotel assets in Portugal while pursuing a long-term residency plan for themselves and their families. Historical investment returns are not a guarantee of future returns.
