Navigating Funds Approved for Portugal Golden Visa Residency-By-Investment
Get a better understanding of the different types of alternative investment funds available to Golden Visa investors and their benefits
Portugal’s Golden Visa residency-by-investment programme has long been a gateway for international investors seeking both residency and potential financial returns.
Among the various pathways to obtain a Portuguese Golden Visa, investment in alternative investment funds regulated by the Comissão do Mercado de Valores Mobiliários (CMVM) stands out as the main choice.
However, the evaluation of alternative investment funds approved for Golden Visa in Portugal requires professional guidance and support, especially as they now exclude direct real estate investments and focus instead on operational success in thriving sectors.
Portugal Golden Visa Key Benefits
Portugal’s Golden Visa residency-by-investment programme allows visa holders to enjoy visa-free travel within the EU Schengen Area, family reunification, and a path to citizenship and an EU passport after five years of residency.
Golden Visa holders can also see a return on their minimum € 500,000 investment in one or more approved alternative investment funds for this purpose.
Chris Marson, CEO of RTi Family Office, said: “While Portugal’s Golden Visa won’t be for everybody, it is a convenient way for non-EU/EEA/Swiss nationals to acquire European residency and citizenship.
“The potential for investors to see a return on their Golden Visa investment adds to the appeal, especially as Portugal’s economy has been seeing steady growth year-on-year.
“In our experience, it’s important to look for alternative investment funds that are across more than one sector or spread the €500,000 investment over a couple of funds that are approved for Golden Visa applications in Portugal.”
Portugal’s Regulators CMVM Approval for Golden Visa
Alternative investment funds approved for Golden Visa purposes mainly invest in the operational side of a business, such as tourism, hospitality, and renewable energy, as the regulators, CMVM, have not allowed direct investments in real estate since 2023 for Golden Visa.
For instance, a fund targeting the luxury hotel sector may generate returns based on the operational performance of these businesses rather than property appreciation. This distinction aligns with Portugal’s broader regulatory goals to foster economic growth and innovation while protecting its local property market.
The regulators, CMVM, are also there to ensure that the right checks and balances are in place with the fund managers of these alternative investment funds, creating downside protection and marketing compliance around claims relating to return on investment.
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How to Further De-Risk Your Golden Visa Investment
Portugal’s alternative investment funds sometimes adopt a blended approach, investing across multiple sectors where Portugal is outperforming the market.
These diversified strategies appeal to investors seeking both more stability and exposure to high-growth opportunities, mitigating risks tied to a single sector.
Paul Sheedy, international advisor to the Portugal Future Fund, an alternative investment fund approved for Golden Visa residency-by-investment in Portugal, said: “A blended approach to investment—spanning sectors such as luxury hospitality and tourism, renewable energy, media, healthcare, and technology —not only aligns with Portugal's dynamic economic landscape but also creates a resilient portfolio that thrives across sectors.
“We have seen time and time again that a blended investment approach can protect against underperforming sectors in a portfolio, giving investors more security and downside protection.”
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Key Considerations for Golden Visa Investors
Fees and Annual Costs
In Portugal, subscription fees for alternative investment funds tend to hover around 2%, with annual management fees of around 2%, which are typical of other international alternative investment fund markets for this purpose.
Sector Focus
Portugal’s alternative investment funds approved for Golden Visa tend to focus on agriculture, tech, tourism, media and events, healthcare, and renewable energy, leveraging Portugal’s global competitiveness.
Chris Marson comments on Portugal’s unique position: “Portugal has seen growth in media and international events such as the Web Summit, Portugal Investment Owners Club investment forums, and the IFA Global Conference that brings over two thousand of the world's leading advisors in tax and investment to Portugal this year. Lisbon was named one of the top three worldwide destinations last year for congresses and conventions by the International Congress and Convention Association.
“This, in addition to a thriving tourism industry, thanks in part to its strategic location on Europe’s Western edge, gives investors a great opportunity to be a part of Portugal’s continued rise.”
Golden Visa Investment Timeline
In Portugal, alternative investment funds typically require a 5-8 year commitment, slightly lower than the European average of 5-10 years.
Portugal’s investment commitments align more with those of North America and Asia, with a balance of long-term growth strategies and short-term exits in emerging markets.
Targeted Internal Rates of Return (IRRs)
Alternative investment funds in Portugal tend to target IRRs of 10-20%. This can be higher or lower depending on the fund’s strategy and purpose. This is in line with most of Europe and North America, reflecting a balanced risk-reward approach.
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Portugal’s Thriving Sectors
Renewable Energy
Portugal aims to become a global leader in renewable energy, with renewables accounting for 71% of electricity consumption in 2024. Renewable production hit a record 36.7 TWh, the highest in the national grid’s history, driven by robust growth in wind, solar, and hydroelectric power.
The country aims to generate 80% of its electricity from renewables by 2030, aligning with its commitment to carbon neutrality by 2050. In 2023, renewable energy saved Portugal €1.95 billion in fuel imports and €750 million in CO2 emissions permits, underscoring its economic and environmental benefits.
Start-ups and Events
Portugal has also rapidly emerged as one of Europe’s most dynamic start-up ecosystems. In 2024, Braga was named the European Commission’s European Rising Innovative City award winner, just a year after Lisbon was named the European Capital of Innovation.
The start-up scene in Lisbon has experienced remarkable growth, with investments in start-ups growing 30% annually over the last nine years, twice the average of the rest of Europe, according to global research organisation StartupBlink.
Lisbon, amongst the rest of Portugal, has benefitted from increased government support for entrepreneurship, improved access to capital and the establishment of incubators and accelerators. This, alongside high-profile success stories including several unicorns, has boosted Portugal’s reputation in recent years.
International events, sports, and luxury living have all seen major GDP growth in Portugal over the last five years, and healthcare, along with tourism and hospitality, is another strong market, as are fintech and digital assets.
Paul Stannard, chairman and founder of Portugal Pathways and Portugal Investment Owners Club, said: “Portugal has created a unique environment for like-minded people to be able to create sustainable investments in key sectors of the country’s economic strength, allowing value creators as well as highly qualified talent to prosper through a combination of tax incentives, quality of life, and investment.
“It’s no surprise that a recent report from Ernst & Young on Portugal’s competitiveness found that investor confidence was at an all-time high compared with the Eurozone and the UK.”
Agriculture
Portugal’s agricultural sector is another vital part of its economy, contributing significantly to exports and rural development. The country is the world’s largest cork producer, accounting for over 50% of global production. Its wine industry, particularly Port and Vinho Verde, enjoys international acclaim.
During 2024, agricultural production in Portugal was valued at €12.22 billion, an increase on the previous year of 14%, according to Eurostat.
This gave Portugal the highest year-on-year increase in the volume of agricultural production for the last 12 months within the European Union.
In comparison, the European Union recorded a decrease of 1.5% over the same timeframe, according to data from Eurostat.
The European Commission has pledged support for Portugal’s agriculture industry with a €6.6 billion Common Agricultural Policy (CAP) plan for 2023-2027. Under the plan, support is allocated to the agricultural sector through direct income payments to farmers, market measures, and rural development support.
Tourism & Hospitality
Tourism plays a pivotal role in Portugal’s economy, contributing approximately 17% to the country’s GDP in 2023, as per CaixaBank research. This highlights the growing importance of Portugal’s tourism and hospitality for investors.
By 2034, the World Travel & Tourism Council (WTTC) estimates the sector will contribute €66.5 billion—22.4% of the total economy.
Destinations such as Lisbon and Porto captivate urban explorers, while the Algarve and Douro Valley appeal to luxury and leisure travellers.
In fact, the Algarve clinched the prestigious title of ‘World’s Leading Beach Destination’ at the 2024 World Travel Awards.
Portugal’s hotel market reflects this success, with revenue projected to grow from $1.07 billion in 2024 to $1.26 billion by 2029, according to Statista Market Insights. With a 3.32% annual growth rate (CAGR), this upward trajectory presents a lucrative opportunity for investors.
Healthcare & Technology
The country is also home to several growing MedTech and Biotech start-ups, specialising in AI-driven diagnostics, telemedicine, and health data solutions. For example, companies like Sword Health, a leader in digital musculoskeletal therapy, are gaining international recognition.
Portugal-based Biovance Capital invests in early-stage biopharma companies developing new therapeutics across Europe, focusing on Portugal, Spain, and Italy. It is a €51 million biotech-focused fund backed by the European Investment Fund and other public and private investors.
Biovance Capital was founded by Peter Villax, who has over 40 years of experience in the pharmaceutical industry in IT, sales, R&D and business administration, and is President of the Portuguese Family Business Association and a Board member of civic and academic bodies.
In 2024, Partners Group bought a majority stake in FairJouney Biologics, a Portugal-based biotech company, valuing the business at about €900 million. This sale marked a 10-fold return for GHO Capital, the company’s owner since 2020, when they acquired a majority stake for just over €50 million, according to PitchBook.
This represents the growth potential for Biotech and MedTech investors in Portugal.
10 Things Golden Visa Investors Want to Know
Take a look at the ten most important things to know about Portugal’s alternative investment funds approved for Golden Visa:
1. Investment Periods: Typically, funds require a 5–8-year commitment, reflecting long-term growth strategies.
2. European Passport/Citizenship: Portugal Golden Visa holders can obtain European citizenship and an EU passport after five years of residency, allowing for freedom of movement within the EU Schengen Area, with only seven days required in Portugal per year with a choice of where you wish to have tax status.
3. Targeted IRRs: Returns are forecasted to range between 10–20%, varying by fund strategy.
4. Track Records: Many funds boast credible histories, being on their second or third cycle, which often indicates maturity and reliability
5. Capital Raised: Some Golden Visa alternative investment funds in Portugal have raised upwards of €50 million, showcasing robust investor interest.
6. Sector Focus: From agriculture to high-tech, media, and tourism, funds tap into industries where Portugal shows global competitiveness.
7. Multi-Sector Strategies: Some funds blend investments across thriving industries, offering balanced risk and reward.
8. Downside Protection: Investors should assess measures like capital preservation mechanisms and operational risk mitigation.
9. Total Capital Sought: Collectively, these funds aim to raise significant amounts, underscoring confidence in Portugal’s economy.
10. Fees and Annual Costs: Subscription fees tend to be around 2%, with annual management fees averaging 2%. Investors should beware of promises of returns and compare fee structures against track records.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
About Portugal Future Fund
The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
Disclaimer: The information on the Portugal Pathways website and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.
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