Portugal Golden Visa Fund Performance 2026: IRR Guide

Key takeaways

1. Portugal’s updated Golden Visa rules in 2026 require a minimum €500,000 investment in CMVM-regulated funds, with personal properties no longer qualifying.
2. Hospitality-focused funds commonly target 5–11% IRR, supported by Portugal’s tourism growth and long-term sector outlook, although past performance is not a guarantee of future returns.
3. Performance and management fees can significantly affect net results, so investors need to understand fee hurdles, profit-sharing, and additional legal and government costs.
4. The Golden Visa typically involves a 12–18 month application process, a minimum 5-year investment period, and a longer 10-year residency requirement before most investors can apply for Portuguese citizenship.
5. VIDA Capital, an advisory firm, helps investors evaluate Portugal Golden Visa funds and the VIDA Fund; you can request guidance at VIDA Capital’s contact page.

The evolving landscape of Portugal Golden Visa fund investments in 2026

Portugal’s Golden Visa framework changed in October 2023, eliminating personal properties as an eligible route and setting a minimum €500,000 subscription into qualifying investment funds. This shifted directed most demand toward regulated fund structures and made fund selection central to any Portugal residency strategy.

All compliant funds are regulated by CMVM, Portugal’s securities authority, which provides investor protection and oversight. This structure supports higher transparency while investors pursue residency and, over the long term, potential citizenship.

Portugal’s hospitality sector remains a key focus for Golden Visa funds. Tourism recovered strongly in 2024–2025, with Portugal registering 31 million visitors in 2024 and tourism revenue of €27 billion. Upcoming drivers, including co-hosting the 2030 FIFA World Cup and long-run expectations that travel and tourism could reach over one fifth of national GDP, support the case for hospitality-oriented strategies.

Analyzing Portugal Golden Visa fund performance: expected returns and core metrics

Expected IRR across hospitality-focused Golden Visa funds often ranges from 5–11%, with many targeting 6–10%. Recent data from 2024–2025 shows hospitality strategies delivering returns around 6–8%, through historical results are not guarantee future results.

Some funds use fixed-income style structures with tax-efficient 2% annual payouts and a defined buyback after six years. Others prioritize capital appreciation, with capital gains profiles that accumulate over longer holding periods, such as step-ups around years 8, 10, and 12.

Diversified portfolios across multiple hospitality projects help mitigate single-asset risk while maintaining exposure to Portugal’s hotel market. This approach can be particularly relevant now that Golden Visa capital can no longer be invested in individual personal properties.

VIDA Capital advises investors on fund options, including the VIDA Fund, which acquires and revitalises hospitality assets rather than building from scratch. Residency planning is complex, so a specialized immigration lawyer is essential throughout the Golden Visa process, which usually spans 12 to 18 months.

Key investment strategies and fund offerings for the Golden Visa

Many Golden Visa funds concentrate on hospitality assets that can be upgraded or repositioned. These strategies typically emphasise operational improvements, refurbishment, and optimizing underperforming properties that can benefit from Portugal’s tourism trends.

Eligible funds must deploy at least 60% of their capital into Portuguese businesses. This rule ties Golden Visa capital to the domestic economy and aligns investor objectives with local employment and regional development.

Recent fundraises exceeding €50 million highlight strong investor interest and growing market depth. Investors today can choose among multiple regulated funds with different risk, return, and liquidity profiles.

Deciphering Portugal Golden Visa fund fee structures and their impact

Fee design has a directly affects net returns. Performance fees for Golden Visa funds often range from 20–50% of profits above a hurdle rate. These fees reward managers on upside but do not share downside risk, which remains with investors.

Annual management fees commonly fall between 1–2% of committed or invested capital. Some fund structures are more investor-friendly, with examples as low as 0.25% paid out of fund assets instead of billed directly to investors.

Investors also need to budget for:

1. Legal fees for an immigration lawyer, which vary by firm and family profile
2. Government fees for the Golden Visa applications and renewals
3. Subscription or entry fees charged by the fund manager, which may be a percentage of the subscribed amount, such as a 1% subscription fee at the VIDA Fund

Clear visibility on all costs is important when comparing projected IRR figures across funds.

Portugal Golden Visa fund comparison: illustrative snapshot

The table below offers an illustrative comparison of select attributes. These examples draw on publicly available information and do not constitute investment recommendations. Historical returns are not a guarantee of future returns.

Exit strategies and the 5-year horizon for Golden Visa funds

Exit design affects capital recovery and gains while meeting residency rules. Common exit tools include operations-backed pay-back, portfolio sales to institutional buyers, refinancing, and in-kind distributions.

The Golden Visa currently requires an investment of at least €500,000 in CMVM-regulated funds held for a minimum of five years. Investors receive a temporary residence permit valid for two years, then must renew for two additional two-year periods while maintaining the investment and residency requirements. As the approval card issuance usually takes a year, you will most likely only need a single renewal instead of two in the 5-year period.

Physical presence requirements remain light, typically totaling 14 days every two years. The permit grants residency rights in Portugal and visa-free Schengen travel for up to 90 days in any 180-day period, but not residency rights across the European Union.

Portugal’s Parliament approved a new citizenship framework in October 2025 that lengthened timelines. Most applicants now need 10 years of legal residence in Portugal before applying for citizenship, while nationals of Portuguese-language countries and EU citizens generally face a seven-year requirement. The new law should apply to Golden Visa investors unless they submitted their citizenship application before it is published.

Spain has closed its Golden Visa program, and Greece requires at least seven years of residence and paying local taxes, to qualify for citizenship. Portugal remains one of the only European options that allows a path to citizenship without relocation, even though the qualifying period is now longer. Support from an experienced immigration lawyer is essential for managing each procedural step and aligning fund timelines with residency and citizenship goals.

Frequently asked points on Portugal Golden Visa fund performance

Minimum investment for Portugal Golden Visa funds in 2026

The minimum eligible investment is €500,000 in CMVM-regulated investment funds that meet Golden Visa criteria. Funds must allocate at least 60% of capital allocated to Portuguese businesses.

Typical expected returns (IRR) for Golden Visa funds

Many hospitality-oriented funds present target IRR ranges between 5% and 11%, with a common band of 6–10%. Some strategies may indicate higher or lower outcomes based on sector focus, leverage, and risk profile. Historical returns are not a guarantee of future results, and investors should assess projections conservatively.

Regulation of Portugal Golden Visa funds

Golden Visa-compliant funds operate under CMVM regulation, which enforces rules on disclosure, governance, and risk management. This framework promotes more consistent reporting and oversight during the life of the fund.

Required holding period and residency conditions

Investors typically must hold their Golden Visa-eligible fund investment for at least five years. During this time they need to maintain a valid residence permit and meet the minimum physical presence requirement of 14 days in Portugal every two years. After five years, they may apply for permanent residency. Citizenship, for most investors, only becomes an option after 10 years of legal residence under the new framework.

Expected fees beyond the €500,000 investment

Investors should plan for:

1. Performance fees, often 20–50% of profits above a hurdle
2. Annual management fees, usually 1–2% of capital, though some funds charge less
3. Legal fees for an immigration lawyer, which vary by family, structure, and service scope
4. Government and biometric fees related to the Golden Visa process
5. Fund subscription fees, such as a 1% subscription fee at the VIDA Fund, paid to the fund manager

Conclusion: aligning fund performance with residency goals

Portugal Golden Visa funds in 2026 operate within a more mature and regulated environment, with hospitality-led strategies supported by strong tourism fundamentals. Target IRRs of 5–11% illustrate the potential of these strategies but must always be viewed in light of fees, risk, and the reality that historical returns are not a guarantee of future performance.

Effective planning requires matching fund choice, fee structures, and exit timelines with the longer 10-year citizenship horizon, while still taking advantage of Portugal’s light stay requirements and the ability to pursue citizenship without relocating. For investors who want structured guidance on these trade-offs, VIDA Capital acts as an advisory partner on Golden Visa planning and fund selection. You can request a consultation at VIDA Capital’s contact page.