What Investment Option to Choose for Portugal Golden Visa — Expert’s Advice by Immigrant Invest

The Portugal Golden Visa offers five investment options, starting from €250,000. Each has its own pros and cons.

We talked to Zlata Erlach, an Immigrant Invest expert, who listed all the investment options and explained which might be more beneficial depending on the applicant’s situation.

To learn more, visit Immigrant Invest Portugal website.

What options does the Portugal Golden Visa offer?

The Portugal Golden Visa have five investment options:

• purchase of investment fund units;
• contribution to arts and restoration of cultural heritage;
• supporting research activities;
• business investment;
• opening a company.

Contribution to the arts and restoration of cultural heritage requires a minimum investment of €250,000. Other options are more expensive, with a minimum investment of €500,000.

All options follow the same procedure and take the same amount of time. The basic list of documents is identical, but specific documentation proving the investment differs. For example, a company registration certificate or a declaration from a scientific research institution may be required.

What’s the best option to choose?

It is impossible to determine the best option, as it depends on the investor’s preferences and situation. However, most applicants choose to invest in Portugal Golden Visa investment funds, with a minimum cost of €500,000.

The most prominent advantage of this option is the opportunity to return the money. Regulations allow refunds after five years of holding units, but investors can often sell them within 6 to 10 years. Additionally, there is potential for profit.

Another benefit is the chance to diversify the investment portfolio, which protects assets. If one area underperforms, it is offset by stability or growth in others.

One drawback is the need to pay additional taxes and commissions, such as subscription and management fees, which can reach up to 7.5%.

What are the pros and cons of the business investment option?

Two specific pathways are available under the Portugal Golden Visa:

• business investment and creating at least 5 jobs; in this case, the minimum investment is €500,000;
• opening a company and creating at least 10 jobs; no minimum investment sum is established.

Business investment is ideal for those looking to expand their business into the European market. Other advantages include the potential for high returns if the company succeeds and the opportunity to diversify an investment portfolio beyond traditional assets like stocks and bonds.

These options may not suit investors who prefer a passive role, as significant involvement in decision-making is often necessary to influence the business’s success.

Another drawback is the lack of guaranteed returns. Potential profits depend entirely on the business’s performance.

Is investing in art and research activities beneficial?

If we talk about investment return, then no. Both options are non-refundable, and the investor cannot profit from them. However, contributing to the arts is the most affordable way to obtain Portuguese residence among all five, which is its main benefit.

These two options mainly benefit Portuguese culture and science. Foreigners who are concerned about the development of science or appreciate Portuguese art might find them appealing.

How to choose 1 option out of 5

1. Decide on your level of involvement. If you prefer minimal involvement, investing in funds or supporting arts and research offers simplicity. These options require less active participation and are straightforward to manage.

For those seeking active participation in Portugal’s economy, business investments are ideal. They involve job creation and allow investors to directly contribute to the country’s growth.

2. Consider your risk tolerance. Business investments carry higher risks but offer the potential for significant returns. In contrast, options like funds or arts contributions are lower risk with more predictable outcomes.

3. Evaluate long-term benefits. Think about financial returns, personal satisfaction, or alignment with your values when deciding on the most suitable option.

For tailored advice, consult with immigration specialists, such as Immigrant Invest. Experts can assess your circumstances, recommend the best option, and guide you through every step of obtaining a residence permit.