The biggest change in the Portugal Golden Visa is the elimination of real estate as an investment option. It literally reshaped how the immigration by investment program will move forward. Real estate was no longer named an asset class that qualified due to the criticism it received for inflation in the prices of properties, and in its role in shortages of housing. The government instead derived a new path that served the economy more towards productivity.
The Venture Capital Funds have taken the role as the most popular option in securing the Portugal Golden Visa, and it is paying the country off brilliantly. Let’s break down its impact on how it reshaped the Golden Visa Program.
What are Venture Capital Funds?
Venture capital investment funds are the funds that provide funding to early-stage startups that are very high-potential, and also small businesses that have future growth to them.
In exchange, the venture capital fund receives ownership in the company or business. These funds are managed by professionals who pool money from different investors to invest in a handful of startups.
Venture capital funds have created a straightforward bridge to securing the Portugal Golden Visa, especially after the removal of real estate as an eligible investment.
To qualify, investors must commit a minimum of €500,000 to an approved investment fund registered in Portugal. These funds must focus exclusively on non-real estate sectors, have a minimum maturity period of five years, and allocate at least 60% of their capital to Portuguese-based companies
Aim Of The Funds:
With the update to Portugal’s Golden Visa rules, funds are expected to focus on areas that bring improvement to
Portugal’s economy. They include
- Job creation
- Environmental protection
- Investment in science, research, and new tech
- Helping less dense communities grow more
Benefits Of Venture Funds:
When you choose Venture Capital funds as your investment route, it provides a range of benefits, including:
• Residency: Visa Free access in the Schengen area, along with residency in Portugal, not one but no benefits.
• Citizenship and Family benefits: You can apply for citizenship after completing five years of residency. Family members like spouses and children are also eligible.
Different Types Of Funds
Investors get to choose from a number of different categories of funds:
Venture Capital Funds:
For investors who are looking at the idea of putting money in a business or a company in the early development stages, which could generate a lot of revenue, but also has some risks.
Private Equity Funds:
For investors who want low risk, stable and long term investments in companies that are already established.
Agricultural Funds:
This targets the growth of agriculture and helps improve farming practices, these funds also offer to align with ESG values as well.
Things To Consider Before Investing:
The Venture capital funds offer exciting opportunities through the program, it’s important that you know the risks that come along as well. Since the companies look for investment in early stages in which they are not established yet, it’s obviously risky. Especially if you compare it with regular investments.
That’s why it’s absolutely necessary that you do your research thoroughly about the funds you’re interested in. Look into the track record of the funds, the experience and most importantly, the investment strategy of the company.
Guidance from a proper reputable professional will work wonders. The world of Venture capital funds and the requirements to have residency can be a headache, so it’s best to have proper consultation from financial and legal experts who know about the Portugal Golden Visa.
Their experience and expertise can guide you not to make any mistakes that could harm you in the long run, and give you the tendency to make better decisions.
Final Thoughts
For investors who are interested in more than just residency, and want to contribute to the economic growth of the country, Portugal is offering an amazing opportunity for them. The elimination of real estate investment hasn’t disappointed the country in any sense, all thanks to the Venture capital funds.
Venture capital funds reflect what the country stands for ambition wise, and this change in regulations attract people that want to invest which will bring long term value to the country.
