The Portugal Golden Visa program has changed significantly, shifting away from property options to focus on fund-based investments for EU residency and a potential citizenship path.
Since October 2023, personal properties are no longer eligible for the program. For high-net-worth investors, this means navigating a nuanced landscape of qualified funds.
This guide highlights three key fund categories for 2025, emphasizing capital safety, compliance, and consistent returns in Portugal’s vibrant economy.
Why Funds Are the Focus of Golden Visa Investments in 2025
The Portugal Golden Visa program has undergone a major regulatory update, marking a notable shift in European residency-by-investment options. Under the ‘Mais Habitação’ law, personal property and capital transfer options were removed as of October 2023. This change has redefined the investment approach for those pursuing EU residency.
This pivot opens doors for investors who value managed, compliant investment options. To qualify for the Golden Visa, funds must be overseen by the Portuguese Securities Market Commission (CMVM), invest 60% of their capital in Portugal-based companies, and avoid any direct or indirect involvement with personal properties. These rules ensure strict supervision, offering investors greater clarity and protection.
With a minimum investment of €500,000 in eligible funds, Portugal’s Golden Visa stands as a valuable route to European residency. Unlike other European programs requiring relocation, Portugal only asks for a 14-day stay every two years, making it a flexible “Plan B” for families wanting mobility without changing their lifestyle. Portugal’s appeal grows with its ranking as the 7th safest country worldwide and a tourism-driven economy that generated €27 billion in 2024.
5 Key Fund Categories for Your Golden Visa Investment Plan
1. Hospitality Funds: Tap Into Portugal’s Tourism Growth
Portugal’s hospitality sector offers a strong opportunity for Golden Visa investors seeking investments tied to tangible assets with growth potential. In 2024, Portugal hosted 31 million visitors, earning €27 billion in revenue. The World Travel & Tourism Council projects this sector will account for 22.6% of national GDP by 2035.
Hosting the 2030 FIFA World Cup alongside other nations will likely boost the economy by over €800 million, further strengthening hospitality prospects. When choosing funds, consider factors like target sector, risk level, manager experience, exit plans, and how well they align with preserving capital through asset-backed setups like hotel operations.
The VIDA Fund focuses on buying and upgrading underperforming hospitality businesses using an owner-operator model. CMVM-regulated funds in this space invest in hotel operating companies rather than property assets to meet Golden Visa rules.
By giving these assets a “second life” through better operations and positioning, the VIDA Fund has drawn over €20 million from more than 50 investors and supported 100+ Golden Visa applications. Keep in mind that historical returns do not guarantee future performance.
When evaluating hospitality funds, look for CMVM regulation, managers with deep industry experience, clear operational plans, and asset-backed setups that prioritize capital safety through tangible backing.
2. Tech and Innovation Funds: Invest in Portugal’s Digital Economy
Portugal stands out as a growing tech hub in Europe, drawing global firms and nurturing startups. Tech-focused venture capital funds offer Golden Visa investors a way to engage with this innovative economy while adhering to program rules.
These funds often back Portuguese tech firms in areas like fintech, healthtech, cleantech, and software. Portugal’s business-friendly climate, skilled talent pool, and access to European and Lusophone markets add to their appeal. While early- and growth-stage investments may carry higher risks, they also present the possibility of stronger returns compared to asset-backed options.
Golden Visa fund choices include private equity, venture capital, and sector-specific options like tech or energy, provided they avoid direct ties to personal properties. Tech funds must meet the 60% investment rule in Portuguese companies and balance risks through diversification.
If considering tech funds, assess the manager’s industry knowledge, portfolio spread, exit strategies, and experience in Portugal’s tech landscape. Review their risk management practices and transparency in performance reporting as part of your due diligence.
3. Multi-Sector Funds: Broad Exposure to Portugal’s Economy
Multi-sector funds give Golden Visa investors a wide view of Portugal’s economic growth while meeting strict compliance standards. These funds span industries like healthcare, renewable energy, manufacturing, and consumer services, steering clear of restricted areas.
The benefit of diversification lies in balancing risks across sectors while capturing growth from Portugal’s overall progress. This setup offers stability during industry downturns and exposure to multiple growth areas. Managers allocate capital based on sector outlook, potential, and compliance needs.
Eligible funds must invest at least 60% in Portuguese-based companies. Some uncertainty persists around what qualifies as ‘indirect’ involvement with personal properties under current rules. Transparency and regulatory knowledge are vital when selecting these funds.
Focus on the manager’s allocation strategy, expertise across industries, risk controls, and clarity in reporting portfolio details and results when reviewing diversified funds.
How to Choose the Right Fund: Key Factors for Investors
Ensuring Compliance with CMVM Regulations
Funds eligible for Golden Visa must be managed by CMVM-accredited professionals to ensure compliance and oversight. This structure protects investors through standardized reporting and monitoring. Confirm that any fund you consider holds active CMVM accreditation and meets all program requirements.
Regulations mandate that 60% of capital stays invested in Portuguese companies, avoiding restricted sectors. Compare funds not just on minimum investment and sector but also on redemption periods, exit costs, and whether they target Golden Visa applicants or broader institutional goals.
Evaluating Manager Experience and Sector Knowledge
A fund manager’s background, performance history, and industry insight are crucial in decision-making. Examine the manager’s CMVM accreditation, past results, sector understanding, internal processes, and reporting clarity during due diligence. Look at their familiarity with Portuguese markets, regulations, and specific industry trends.
Past performance offers a glimpse into a manager’s capability, though it’s important to note that historical returns do not guarantee future results. Assess their investment process, risk management, and ability to create value through operational and strategic efforts.
Focusing on Capital Safety with Asset-Backed Options
For investors prioritizing capital protection, asset-backed strategies provide security through tangible value. Funds tied to businesses with physical assets, like hospitality operations, offer more safety than pure equity investments.
Evaluate capital safety by reviewing the fund’s underlying assets, collateral structure, and liquidation options. Asset-backed funds can recover value through asset sales if needed, offering a layer of protection not found in intangible investments.
Understanding Fees and Overall Costs
Funds typically charge a 1-2% annual management fee and a 20-50% performance fee on profits above a set threshold, plus varying legal costs. Grasping the full fee structure helps in calculating net returns and total expenses.
Beyond management fees, account for Golden Visa government fees, legal costs of €16,000 to €20,000, and subscription fees. The VIDA Fund, for instance, keeps fees clear with a 1% subscription charge, ensuring upfront cost transparency.
Benefits of Working with VIDA Capital for Your Golden Visa Journey
VIDA Capital, an advisory firm, connects high-net-worth individuals with secure, asset-backed opportunities in Portugal’s hospitality sector. We blend industry knowledge with full-spectrum Golden Visa support, guiding you toward EU residency and citizenship eligibility.
Our hands-on advisory approach provides personalized assistance through the intricate Golden Visa process. VIDA Capital bridges the gap between investors, legal teams, and the VIDA Fund, simplifying paperwork, compliance, and applications. Our team brings experience with over €4 billion in managed assets, 100+ private equity deals, and engagement with 1,000+ global investors.
The VIDA Fund emphasizes capital safety by investing in hospitality operating companies with tangible assets. Our strategy of giving these assets a “second life” revitalizes underperforming businesses into high-value operations, all within Golden Visa compliance. Regulated by CMVM and audited twice yearly by Deloitte, the fund upholds rigorous standards for investor protection.
|
Feature |
VIDA Fund (Hospitality) |
Technology VC Funds |
Generic Multi-Sector Funds |
|
Investment Focus |
Asset-Backed Hospitality Operating Companies |
Portuguese Technology Startups |
Diversified Portuguese Companies |
|
Capital Preservation |
Strong (Tangible Asset Collateral) |
Lower (Equity-Based) |
Varies by Allocation |
|
Risk Profile |
Moderate (Asset-Backed) |
Higher (Early-Stage Technology) |
Moderate to High |
|
Investor Support |
Personalized Concierge Service |
Standard Fund Relations |
Standard Fund Relations |
Common Questions About Golden Visa Fund Investments
What Defines an Asset-Backed Fund for Golden Visa in 2025?
Asset-backed funds target operating companies with significant tangible holdings, offering intrinsic value and capital protection. For Golden Visa compliance, this involves hotel operating companies rather than direct property stakes.
These businesses hold physical assets while aligning with rules against property involvement. This structure provides a safety net through potential asset liquidation, unlike purely equity-based options.
How Does the 10-Year Citizenship Timeline Impact Investment Choices?
Portugal’s updated citizenship rules now require a 10-year residency period before eligibility, a longer wait than before. This change does not diminish the Golden Visa’s core benefits for most investors. The program still offers EU residency with a minimal 14-day stay every two years, visa-free Schengen travel, and rights to live, work, and study in Portugal. For those focused on residency and mobility as a “Plan B,” this timeline shift has little bearing on investment decisions.
What Compliance Rules Must Funds Follow for Golden Visa Eligibility?
Funds qualifying for the Golden Visa face strict standards, including CMVM oversight, a €500,000 minimum investment, 60% capital in Portuguese companies, and a complete ban on direct or indirect property ties. These criteria must hold for the five-year investment duration. Managers are also required to submit regular reports to ensure ongoing compliance and program integrity.
What Steps Are Involved in the Golden Visa Application with Funds?
The Golden Visa process starts with choosing an eligible fund and investing €500,000. First, obtain a Portuguese NIF (tax ID) and open a local bank account, ideally with legal help. Next, submit the formal application through an immigration lawyer. After initial approval, schedule biometric data collection for yourself and family members.
You’ll receive a two-year temporary residency permit, renewable twice before permanent residency eligibility. 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. Having a lawyer guide you through each step is essential for compliance and success.
What Costs Should I Expect Beyond the €500,000 Investment?
Beyond the fund investment, Golden Visa expenses include government fees, legal costs, and fund charges. Government fees are about €9,821.20 per family member for the initial application and card, plus €3,023.20 per person per renewal. Legal fees range from €16,000 to €20,000 based on case complexity. The VIDA Fund charges a clear 1% subscription fee, while annual management fees typically sit at 1-2%, with performance fees of 20-50% on profits above a set level. For a family of four, plan for total costs of €550,000 to €570,000, excluding ongoing management fees.
Final Thoughts: Building Your European Future with Strategic Fund Choices
In 2025, the Portugal Golden Visa program calls for thoughtful investment decisions that weigh compliance, capital safety, and growth opportunities. The three fund types covered here offer distinct paths to EU residency and future citizenship eligibility, each suited to different investor needs and risk levels.
Hospitality funds like the VIDA Fund stand out for those valuing capital protection, leveraging Portugal’s tourism surge with asset-backed structures. Tech venture capital funds suit investors open to higher risk for growth potential, while private equity and multi-sector funds offer balanced exposure to Portugal’s economy.
Success in Golden Visa fund investments hinges on careful research, verifying compliance, and matching choices to your financial goals and risk comfort. The detailed nature of fund selection and application steps highlights the need for expert advisory support.
Portugal’s Golden Visa remains a top residency-by-investment option in Europe, providing unmatched mobility, family inclusion, and minimal stay requirements. With Spain discontinuing its program and Greece requiring seven years of residence for citizenship, Portugal offers a distinct edge for international investors.
