It’s been one year since the changes to Portugal's Golden Visa programme, but I’m still asked if it has ended. It’s hard to be surprised as there was so much confusion around that time. Between then and now, my answer is still the same: no, it’s still possible to get on the path to European citizenship. The only part of my answer that’s changed is that we don’t know how long the programme will remain and investors need to be clever when choosing their route.


The real estate route for obtaining a Golden Visa ended in October 2023, but non-EU investors still have viable pathways to secure residency in Portugal and eventually European citizenship. Investment funds, in particular, have emerged as a popular alternative. Compared to real estate, fund investments offer several advantages: the process is significantly faster, they involve lower taxes and fees, provide sectoral diversification, and require no management or upkeep, making them a more streamlined and efficient option for investors.


As the allure of Golden Visa investments in Portugal continues to captivate global investors, the future of this program is becoming an increasingly pivotal topic. Next Wednesday, 16th October we are holding a webinar where we will be discussing how the potential for residency through investment has opened doors for many, but the reality is that these opportunities may not last indefinitely.


With regulatory changes and evolving market dynamics on the horizon, investors must be vigilant and proactive in navigating this shifting landscape. Understanding the implications of these changes is crucial for anyone looking to secure their future in Portugal.


One of the biggest questions I’m asking is who are the investors that are applying for the programme. Golden Visa investments have long been associated with real estate, offering individuals a tangible connection to their host country. However, in recent years, the shift toward fund-based investments has excited some and confused many. Not everyone fully understands the world of fund-based investments.


The learning curve can be steep, but these routes are still gaining traction, appealing to investors for several reasons beyond just residency. These investments represent a blend of financial growth, wealth preservation, and long-term family planning, making them attractive to global investors, particularly those looking for stability in uncertain times.


Who are the investors behind the programme?


The people choosing the Golden Visa fund route typically do so for a mix of lifestyle, financial security, and family-oriented reasons. For many investors, the ability to secure European citizenship through a straightforward and regulated investment process is highly attractive. But most reasons are family related.


For one of my clients from San Diego, the primary appeal lay in securing her children's access to European higher education and making it easy for them to move to Portugal or elsewhere in Europe in the future. Another from Istanbul valued the ease of movement across Europe for his frequent business travel. Yet both saw the minimal visiting requirement throughout the six-year process as a real benefit that wouldn’t disrupt their current residency situation.


Even clients on opposite sides of the world can have similar reasons for investing. A client from Manchester in the UK and another from Santiago were more focused on long-term family planning. The UK client was keen on providing his children with the same freedom and opportunities he had growing up in Europe, which have now been lost since Brexit. The client in Santiago saw the program as a way to ensure her semi-dependent children have the freedom to work, study, and travel in Europe, all while planning her own future move to Portugal.

In both cases, the program's ability to grant European citizenship within six years is a major draw, making the Golden Visa fund route an appealing option for families planning ahead.


Fund investments: a multi-faceted strategy


For those investing in a Golden Visa-eligible fund, it's increasingly being seen as part of a broader strategy. These funds, often backed by well-established managers, are designed to provide diversification across sectors such as renewable energy, healthcare, agriculture, and hospitality. The inherent benefit of diversification is that it offers stability—spreading risk across industries less affected by market volatility. However, there are also funds that invest largely in one area, such as the classic car market for example.


Right now, the problem for clients is that there are so many options out there. So it’s important to do research and look at what other investors are doing.


For many, fund investments are not merely financial decisions but strategic moves for family and legacy planning. They offer a route to citizenship or residency in countries like Portugal, providing access to high-quality education, healthcare, and an improved lifestyle. This makes the investment dual-purpose: a financial gain and a secure future for the family.


Risk vs reward


With global economic uncertainty becoming the new normal, wealth preservation has become as critical as wealth creation. Fund-based Golden Visa investments are increasingly seen as a mechanism for preserving capital in a low-risk environment. But there is still risk, just as there is with any investment, so it’s critically important the investors understand the levels of risk. Investors should look for fund structures that prioritise downside protection and governance and make sure they’re dealing with regulated and authorised fund managers.


While the benefits of investing in Golden Visa-eligible funds are clear, the decision is not without risks. The appeal of capital appreciation and regular dividends must be weighed against the potential volatility of the sectors the fund invests in. For instance, while hospitality may offer high returns in times of economic boom, it is susceptible to downturns like the COVID-19 pandemic.


In the medium-term future, fund-based structures will continue to be the route of choice for Portugal’s Golden Visa programme. If chosen well, investors who approach these opportunities with a long-term view can benefit from not just residency but also a solid foundation for future financial growth. But investors have to be careful.


by Niamh Erbek, Sales Director at Athena Advisers