Why Brits and Americans Have Invested Millions Already in Portuguese Golden Visa Investment Funds
In 2021, British and American investors collectively raised over € 0.5 billion in Portuguese Golden Visa investment funds.
Amongst our clients, we noticed a recurring theme of why they opted for the fund investment route to Portuguese residency.
Familiarity with investment funds
The Portuguese Private Equity and Venture Capital industry are regulated by the CMVM (Securities Market the Commission) and follow the same framework as their western counterparts such as the SEC (Securities and Exchange Commission) in the U.S. or the FCA (Financial Conduct Authority) in the U.K. Ultimately, this had led to a greater sense of trust and security in investing in Portuguese funds. This, together with the fact that the U.S. has the most significant capital market globally and the U.K.market is the largest in Europe, makes its citizens more prone and comfortable with this type of financial product.
Diversification
An interesting fact is that, initially, our investors chose to invest in these financial products with the primary goal of obtaining a golden visa. However, as mentioned above, they have noticed that such products are regulated and made available for local investors and foreign investors alike. This has resulted in investors making nuanced investment decisions rather than just opting to invest with the sole aim of acquiring a second residency.
Other decisive factors for British and American nationals include:
- Exposure to a euro-denominated fund, with a lower FX risk than other hard currencies
- Stable political conjuncture and favorable international relations, thus minimizing risk
- Tax efficiency when compared to a real estate purchase
- Geographic diversification of the portfolio
- Investing in sectors with high growth potential
- Second residency as an additional benefit of investing in Portuguese golden visa qualified funds.
Apart from these financial motivations, certain political causes are also at play. In the United States’ case, investors have increasingly pivoted to seeking security elsewhere in the wake of recent political uncertainties that have gripped the country. As for the United Kingdom, the country’s exit from the European Union and the subsequent Brexit implications have made UK nationals seek alternative solutions to maintain their freedom of mobility in the European Union.
Ultimately, Portugal’s private equity/venture capital industry is benefitting from this fusion of experiences and ideas. Besides the U.S. and the U.K., nationals from India, South Africa, Turkey are also increasingly influencing the investment sector.
Interested in investment funds? We can help. We’re Global Citizen Solutions, a boutique investment migration consultancy firm, offering second residency and citizenship by investment solutions for international families looking to enhance their freedoms, invest abroad, and/or relocate. Our team offers a bespoke end-to-end service to guide clients every step of their journey to securing the Portugal Golden Visa. Contact us for more information.
