Demand for fund-linked Golden Visas soars

The number of Portugal Golden Visas issued in return for investments reached a new record last year.

And while the exact number of Golden Visas issued in return for investments in Portuguese government-approved funds is not published, 5,000 Golden Visas were issued last year – a 72% increase on 2023, with most investment widely said to be through these funds.

And on the back of investment funds, fund managers are saying that the appetite for these investments is even greater thanks to applications from the United States.

Investors turned to investment funds after the then Socialist Party government of António Costa announced in October 2023 that it would scrap the Golden Visa investment through real estate option.

However, despite not being directly linked to the Authorization for Residency for Investment (ARI), popularly called the ‘Golden Visa’, the current changes foreseen to Portugal’s new nationality law are already casting a cloud of uncertainty.

In an interview with the business daily Negócios, Pedro Lino, the CEO of Optimize Investment Partners, which manages funds for Golden Visa investors, says: “The Golden Visa programme wasn’t seen in a good light in Portugal because up until 2023 they were blamed for pushing up house prices in Portugal, but governments saw it as a source of investment for Portugal.”

And with the investment option for investments in funds, he says: “There has been a lot of demand, particularly from Americans.”

The fund that Optimize launched in 2021 is now the second largest in Portugal. Overall the investment firm has €550 million of assets under management, over 30,000 clients, 18 funds, and has won 17 awards and distinctions.

One of these funds, which is eligible for the Golden Visa programme, is Optimize’s Portugal Golden Opportunities Fund which is geared towards investment in mostly Portuguese companies and offered a 6.3% return last year. The minimum investment amount is €1000.

The fund had €32 million in its first year in operation, and has now reached €302 million with the company hoping to have €360 million under management by the end of the year with 600 of its 1,100 investors being Golden Visa investors.

In line with the programme, (which specifies that 60% must be invested in Portugal), 65% is invested in shares, 25% in bonds, and 10% overseas.

“(The fund) attracts high return investors, including tourists, and it helps to finance companies and the tourism sector, and Pedro Lino says that even with the changes to the Golden Visa and the Nationality Law, there has been strong demand, and from what we’re seeing, there seems to be no signs of things slowing down,” he concludes.