The Portugal Golden Visa Investment Fund is the primary way to qualify for Portugal’s Golden Visa after real estate was removed from the program. Instead of buying property, applicants invest €500,000 into regulated Portuguese investment funds that meet government and regulatory requirements.

This route is especially relevant for people moving to Portugal from the U.S because it allows investors to maintain their life and tax base in the United States while meeting Portugal’s residency rules with minimal physical presence. The investment must be held for at least five years and can lead to permanent residency or Portuguese citizenship.

This guide explains how Portuguese golden visa funds work, what qualifies as an eligible fund, how risk and returns should be assessed, and how to evaluate a Portuguese golden visa investment fund list when choosing between golden visa investment funds in Portugal. 

What is the Portugal Golden Visa investment fund?

The Portugal Golden Visa investment fund is a qualifying route under Portugal’s Golden Visa program that allows non-European Union nationals to obtain residency by investing €500,000 into approved Portuguese investment funds instead of purchasing real estate.

Eligible funds are typically private equity, venture capital, or alternative investment vehicles that invest in Portuguese companies and productive sectors of the economy. All qualifying funds must be regulated by the Comissão do Mercado de Valores Mobiliários, which oversees authorisation, compliance, and ongoing reporting.

Unlike traditional investment funds, Golden Visa funds must follow immigration-specific rules. They are required to invest at least 60% of their capital in Portuguese companies and are prohibited from investing in direct or indirect residential real estate. These restrictions exist to ensure the investment supports Portugal’s economy while meeting residency requirements.

Why the investment fund route became the primary Golden Visa pathway

The investment fund route became the main Golden Visa option after Portugal removed real estate as a qualifying investment. In 2023, the Portuguese government ended the use of residential property under the Golden Visa as part of wider housing reforms aimed at easing pressure on the local housing market.

After real estate was removed, the program shifted toward productive and regulated forms of investment. The focus moved to investments that support Portuguese businesses, encourage job creation, and contribute to long-term economic development. Investment funds provided a structured way to attract foreign capital while allowing financial authorities to maintain close regulatory oversight.

This shift also reflects broader European Union priorities, which increasingly discourage property-based residency schemes in favour of investment models tied to business activity and economic growth. As a result, regulated investment funds are now the central and most stable route within Portugal’s Golden Visa framework.

Minimum investment requirements

The Portugal Golden Visa Investment Fund route requires a minimum investment of €500,000. This amount must be invested into one or more eligible funds that meet Portugal’s Golden Visa rules and are approved by the relevant authorities.

Applicants may invest the full amount into a single qualifying fund or split the €500,000 across multiple eligible funds, as long as the total investment threshold is met and each fund complies with Golden Visa requirements. In practice, most applicants typically choose one fund for simplicity; however, diversification across funds is permitted if properly structured and documented.

Comparison of qualifying investment options for Portugal’s Golden Visa

Mandatory holding period

The qualifying investment must be maintained for a minimum of five years. This holding period aligns with the Golden Visa’s residency timeline and is a legal requirement, not a fund-specific preference.

During these five years, the investor must continue to hold the qualifying fund units in order to renew their residence permit. If the investment is withdrawn early or falls below the required threshold, the Golden Visa may be denied or not renewed.

The five-year holding period also corresponds with eligibility for permanent residency or Portuguese citizenship, after which there is no longer an obligation to keep the original investment in place.

Source of funds and compliance rules

Applicants must demonstrate that the €500,000 investment comes from a lawful source of funds. This includes income from employment or business activities, dividends, asset sales, or inheritance, provided the funds can be clearly documented.

All investments are subject to anti-money laundering and banking compliance checks. Portuguese banks and fund managers are required to verify the origin of funds, perform know-your-customer checks, and ensure compliance with European Union financial regulations. 

These checks are particularly strict for cross-border transfers from outside the European Union, including the United States. Failure to meet source-of-funds or compliance standards can delay or prevent approval, even if the investment amount itself is sufficient.

What qualifies as an eligible Golden Visa investment fund?

Not every Portuguese fund qualifies for the Golden Visa. To be eligible, a fund must meet specific regulatory and investment rules tied to Portugal’s immigration framework. 

This is where many U.S. applicants get tripped up when looking at a general Portugal Golden Visa investment fund list online, because plenty of legitimate funds still fail Golden Visa eligibility rules.

Regulatory requirements

To qualify, the fund must be authorised and supervised by Comissão do Mercado de Valores Mobiliários (CMVM). This is Portugal’s securities regulator, and it is responsible for oversight of fund activity, governance, and compliance.

The fund must also be domiciled in Portugal, meaning it is legally established and regulated under Portuguese rules. This matters because the Golden Visa investment fund route is designed to direct investment into Portugal’s economy through Portuguese-regulated structures.

Finally, eligible funds operate within the compliance framework that applies to European Union financial products. In practice, this means fund managers follow strict investor due diligence and anti-money laundering standards, plus ongoing reporting and oversight requirements.

Capital allocation rules

Portugal’s Golden Visa rules require eligible funds to invest at least 60% of their capital in Portuguese companies. This is the core economic condition of the fund route and a key reason it remains acceptable under the program’s post-reform direction.

There are also clear exclusions. Funds can’t be structured to invest in direct or indirect residential real estate, and real-estate-backed or property-heavy strategies are not eligible for Golden Visa qualification. This includes funds whose core exposure is tied to residential property development, residential rental yield, or similar real estate-driven models.

For U.S. investors comparing golden visa investment funds in Portugal, this rule is one of the most important filters. A fund can be reputable and still be ineligible if its underlying portfolio breaches the real estate restriction or fails the Portugal allocation threshold.

Common fund types used for the Golden Visa

Most eligible Portuguese golden visa funds fall into a few broad categories:

• Private equity funds, which invest in established Portuguese businesses with the goal of value growth and eventual exit.
• Venture capital funds, which invest in early-stage Portuguese companies, usually with higher risk and higher return potential.
• Alternative investment funds, which may include blended strategies across private markets, such as infrastructure-linked business projects or sector-specific growth funds, as long as they meet Golden Visa eligibility rules.

Each fund type differs in risk profile, liquidity, and exit timelines, which is why fund selection is less about finding a “best” fund and more about matching the fund strategy to your residency timeline and risk tolerance.

How Portugal Golden Visa investment funds work

Most Portugal Golden Visa investment funds are structured as closed-end funds, meaning capital is committed for a fixed period and cannot be freely redeemed before maturity. Open-end funds are less common for Golden Visa purposes because they offer ongoing liquidity, which can conflict with residency compliance requirements.

Funds usually follow a clear lifecycle: capital is committed upfront, deployed gradually into qualifying investments, managed over several years, and then returned to investors through exits such as company sales or buybacks. 

Role of the investor

The investor’s role in a Portugal Golden Visa investment fund is fully passive. Investors do not participate in day-to-day operations, business decisions, or management of portfolio companies.

There is no operational or managerial involvement required to maintain Golden Visa eligibility. Fund managers handle investment selection, oversight, and exits, while investors simply hold fund units for the required period.

Depending on the fund structure, investors may have limited information or voting rights, such as access to periodic reports or approval rights on major fund decisions. These rights are typically administrative and do not involve active management or control.

Risks and potential returns of the investment fund route

Expected return ranges

Returns on the Portugal Golden Visa Investment Fund route vary depending on fund strategy, sector focus, and market conditions. Most regulated funds used for Golden Visa purposes target annual internal rates of return (IRRs) in the range of 4% to 10%, although returns are not guaranteed and may be higher or lower in practice.

Some funds focus on income generation through dividends or distributions, while others prioritise long-term capital growth through business expansion and eventual exits. Venture capital strategies generally carry higher return potential but also higher risk compared to private equity or diversified alternative funds.

Key risk factors

Golden Visa investment funds are illiquid investments, meaning capital is locked in for several years and cannot be easily withdrawn before the fund’s exit phase. This illiquidity is a core risk and should be carefully considered, especially by investors who may need access to capital in the short term.

Returns are also exposed to market and sector risk, as fund performance depends on economic conditions, business growth, and exit opportunities. In addition, fund manager execution risk plays a significant role. Outcomes depend heavily on the experience, strategy, and decision-making of the fund’s management team.

Capital protection considerations

There are no government or capital guarantees under the Golden Visa investment fund route. Investors bear the full investment risk, and losses are possible if portfolio companies underperform or exits occur at unfavourable valuations.

Because of this, diversification and professional due diligence are critical. Many applicants compare multiple options from a Portugal golden visa investment fund list and focus on fund track records, sector exposure, and governance structures rather than headline return projections.

Tax treatment of the Golden Visa investment fund

Tax treatment for non-tax residents

Investing in a qualifying Portugal Golden Visa investment fund does not automatically make an applicant a Portuguese tax resident. Investors are only considered tax residents if they spend more than 183 days per year in Portugal or establish habitual residence there.

Non-tax residents are generally taxed in Portugal only on Portuguese-sourced income. In many cases, income generated outside Portugal remains taxable only in the investor’s home country. 

For U.S. citizens who maintain their primary residence in the United States, this allows the Golden Visa to function as a residency pathway without triggering Portuguese worldwide taxation.

Distributions from investment funds may still be subject to Portuguese withholding taxes depending on the fund structure and the investor’s tax status, which is why individual tax advice is strongly recommended.

Tax treatment for tax residents

If an investor becomes a Portuguese tax resident, they are subject to Portuguese tax on worldwide income under standard tax rules. This includes dividends, capital gains, and other investment income unless an exemption applies.

Capital gains and distributions from Golden Visa investment funds are taxed according to Portugal’s personal income tax framework, and rates may vary based on the nature of the income and applicable tax treaties. U.S. investors must also consider ongoing U.S. tax reporting obligations, as holding Portuguese residency does not remove U.S. tax filing requirements.

Interaction with NHR 2.0 (IFICI)

Golden Visa holders who become Portuguese tax residents may be eligible to apply for Non-Habitual Resident 2.0 (also known as the Incentive for Scientific Research and Innovation, IFICI) if they meet the professional and activity-based criteria.

NHR 2.0 offers a 20% flat tax rate on qualifying Portuguese employment income and potential exemptions on certain foreign income streams for a fixed period. However, eligibility depends on the investor’s professional activity and tax profile, not on the Golden Visa itself. Holding a Golden Visa investment fund does not guarantee access to this regime.

Residency rights under the investment fund route

Initial residence permit

Applicants approved under the Portugal Golden Visa Investment Fund route receive an initial residence permit that is valid for two years. This permit grants the right to live in Portugal and access essential services during its validity period.

The residence permit also allows visa-free travel across the Schengen Area, making it possible to move freely within most European countries for short stays. Holders may also study in Portugal and enroll their children in international schools if they choose to relocate.

Minimum stay requirements

Applicants must spend at least seven days in Portugal during the first year of residency. For each subsequent year, the requirement increases to fourteen days total, which can be split across multiple visits. Meeting these stay requirements is mandatory to renew the residence permit and maintain legal residency status.

Family reunification rules

The Golden Visa allows family reunification from the start of the application. Eligible dependents typically include a spouse, minor children, and dependent adult children who are financially reliant on the main applicant.

Dependent parents of the main applicant or spouse may also qualify, provided financial dependency can be demonstrated. Each dependent must meet documentation and background requirements and maintain residency compliance alongside the main applicant.

Fees and costs associated with the fund route

In addition to the €500,000 investment, applicants should expect fund-level costs. These vary by fund. They typically include a subscription or entry fee, annual management fees, and sometimes performance or carried interest fees tied to the fund's returns. Fund managers set these fees. They are separate from government or legal costs.

Government fees

Portugal charges several government fees for Golden Visa processing:

• Application analysis fee: €618.60 per applicant (paid at submission for initial applications and renewals)
• Residence permit issuance: €6,179.40 per applicant for initial approval
• Residence permit renewal: €3,090.40 per applicant
• Permanent residence application: €8,463.40 per applicant
• Permanent residence renewal: €4,326.30 per applicant

These fees apply to each applicant, including dependents.

Professional and ancillary costs

Most applicants also incur professional and administrative costs:

• Legal fees: €10,000 to €20,000 (depending on the scope of services, typically covering document review, application preparation, compliance checks, and support throughout the approval process)
• Administrative expenses: €100 to €300+ for criminal record certificates, apostilles, notarized translations, and certified copies (costs vary by country)
• Banking and compliance costs: Required for opening Portuguese accounts

Total costs vary depending on family size, document complexity, and whether you use full legal support.

Processing time and application timeline

Timeline from investment to application

The Golden Visa application process begins only after the qualifying investment has been completed and formally confirmed. Applicants must first subscribe to an eligible investment fund and obtain official documentation proving that the required capital has been committed in accordance with Golden Visa rules.

Document preparation usually takes place alongside the investment stage. This includes gathering criminal background checks, proof of investment, identity documents, and supporting records for any dependents.

Immigration processing stages

1. Application submission

Once your application file is complete, it is submitted to Agência para a Integração, Migrações e Asilo (AIMA). AIMA is the authority responsible for Golden Visa applications. Submission confirms that your application is under review. It does not grant residency rights at this stage.

2. Biometrics appointment

After submission, you must attend an in-person biometrics appointment in Portugal. During this appointment, AIMA collects fingerprints, photographs, and completes identity verification for the main applicant and all dependents. Scheduling depends on appointment availability and administrative capacity. Wait times may vary.

3. Final review and approval

Following biometrics, your application enters final review. Approval timelines are not fixed by law. They vary based on application volume, file complexity, and administrative workload. Once approved, AIMA issues residence cards. Your five-year Golden Visa residency period officially begins from the date of issuance.

Step-by-step process to apply using the investment fund route

Step 1: Obtain a Portuguese NIF

All applicants must obtain a Portuguese tax identification number (Número de Identificação Fiscal). Non-residents are required to appoint a Portuguese tax representative to request and maintain the NIF on their behalf.

Step 2: Open a Portuguese bank account

Applicants must open a Portuguese bank account to complete the qualifying investment. Banks require know-your-customer documentation, including identification, proof of address, and verification of the lawful source of funds.

Step 3: Select an eligible Golden Visa investment fund

Applicants choose one or more eligible golden visa investment funds in Portugal that meet regulatory and capital allocation rules. Fund selection typically involves reviewing due diligence materials, investment strategy, risk profile, and compliance with Golden Visa requirements.

Step 4: Transfer and invest €500,000

The required capital is transferred to the Portuguese bank account and invested in the selected fund or funds. Applicants receive official confirmation documents proving that the €500,000 investment has been completed and subscribed.

Step 5: Prepare the Golden Visa application file

The application file includes passports, criminal background checks, proof of investment, bank statements, health insurance, and civil documents for dependents. All documents must meet Portuguese legal standards and, where required, be apostilled and translated.

Step 6: Submit the application to Agência para a Integração, Migrações e Asilo

The completed application is submitted online through the immigration authority’s system, along with payment of the required government fees for the main applicant and any dependents.

Step 7: Attend the biometrics appointment

Applicants must attend an in-person biometrics appointment in Portugal. Fingerprints, photographs, and identity verification are completed for the main applicant and dependents, and family members may attend together.

Step 8: Receive the residence permit

Once the application is approved, residence cards are issued. The five-year Golden Visa residency timeline officially begins on the date the residence permit is granted.

Path to permanent residency and Portuguese citizenship

Residence permit renewals

Portugal Golden Visa residence permits issued through the investment fund route are renewed after two years, then every three years after that. At each renewal, applicants must show that the qualifying investment remains in place and that minimum stay requirements have been met. 

Ongoing compliance also includes maintaining valid health insurance, clean records, and up-to-date documentation for all dependents.

Citizenship eligibility after five years

After completing five years under the Golden Visa, applicants may apply for permanent residency or Portuguese citizenship. Citizenship requires A2-level Portuguese language proficiency and a clean criminal record. Once citizenship is granted, there is no obligation to maintain the original investment, regardless of the fund’s remaining lifecycle.

Pros and cons of the Portugal Golden Visa investment fund

Pros

• No real estate ownership or property management responsibilities
• Low physical presence requirements suitable for non-relocating applicants
• Professionally managed investments with regulatory oversight
• Clear and established route to European Union citizenship after five years
• Possible return on investment

Cons

• Higher upfront capital requirement compared to donation-based options
• Illiquid investment structure with capital locked in for several years
• Exposure to market risk and fund manager performance

Who is the investment fund route best suited for?

The Portugal Golden Visa investment fund route is well-suited to professionals who want European Union residency without the need to relocate full-time or change their primary tax base. The low physical presence requirement enables investors to maintain their careers and businesses abroad while still fulfilling their residency obligations.

It is also a strong fit for entrepreneurs and senior executives who prefer a passive investment structure. Rather than managing property or operating a business in Portugal, investors can rely on professionally managed funds, allowing them to focus on their core professional activities.

Families planning long-term European Union citizenship often choose this route because it offers a clear five-year pathway with flexible residency requirements. The ability to include dependents from the start and pursue citizenship without permanent relocation makes it especially attractive for long-term planning.

Finally, the fund route appeals to investors seeking a hands-off residency solution. Fund managers handle investment decisions and compliance, allowing applicants to focus on residency and citizenship goals rather than day-to-day investment management.

Touchdown makes relocating to Portugal simple and efficient

Every move to Portugal starts differently. Some people come for work, others for family, and many for a better lifestyle, but everyone begins with the same question. Which visa do I actually qualify for? Touchdown is built by expats for expats and simplifies this first step by giving you a clear starting point. 

You can use the free Eligibility Checker to understand your options. Once you know where you stand, it becomes much easier to understand your visa choices. 

Most people end up between the D7 Passive Income Visa, which suits retirees and individuals with stable passive income, and the D8 Digital Nomad Visa, designed for freelancers and remote professionals, or the Golden Visa (which might be the right fit if you're looking to make a significant investment in Portugal).

Touchdown explains the requirements for each and helps you understand which one aligns with your goals, but the support doesn’t stop at choosing a visa. 

The team guides you through every step of the process, preparing documents, submitting applications, reviewing your rental contract to ensure it meets immigration rules, obtaining your NIF, opening a bank account, and handling tax matters such as NHR2 or setting up a company if your work model requires it.

You can book a 1:1 consultation where the team reviews your situation and outlines the path that fits your income, family setup, and long-term plans.