Portugal golden visa: fund investment vs real estate

For years, many international investors hoped to combine a holiday home in Portugal with residence through the country’s golden visa. Since the Mais Habitação law took effect in October 2023, that route has no longer been available: buying real estate, directly or through property-related funds, no longer qualifies.

Some investors still look first at property, but under the current rules the main investment route is a subscription of at least €500,000 in a qualifying investment or venture capital fund that invests mainly in Portuguese companies. The real estate route has closed, and for most investors the fund route is now the practical alternative.

Why qualifying funds suit many golden visa investors

A fund investment is not only a way of meeting the golden visa requirement. Depending on the investor’s tax residence and the fund’s structure, it can have several practical advantages over holding property:

• No property transfer taxes: there is no IMT, stamp duty on purchase or annual IMI to pay on a fund subscription.
• Potentially favourable tax treatment: distributions and gains from certain Portuguese venture capital funds can be exempt from Portuguese tax for qualifying non-resident investors. Treatment in your own country of residence will differ.
• Professional management: the investment is managed by a regulated fund manager rather than by you.
• Diversification: funds usually invest in several companies or projects, which spreads risk.

Funds also carry risks, including the loss of capital, limited liquidity during the holding period and management fees, so each fund’s documentation should be reviewed carefully.

Taxes and costs compared: qualifying fund and direct property

The table below is a simplified illustration of the costs involved in each type of investment of €500,000. Direct property purchases no longer qualify for the golden visa, but the comparison is useful for investors who plan to buy a home in Portugal as well.

Cost or tax	Qualifying fund	Direct property
Investment	€500,000	€500,000
Purchase taxes (IMT and stamp duty)	None	Roughly €30,000 to €40,000, depending on the property and its use
Annual municipal property tax (IMI)	None	Typically 0.3 to 0.45 per cent of the tax value of urban property
Tax on income	Depends on the fund and the investor’s tax residence	Rental income is taxed in Portugal, for non-residents usually at a flat rate
Tax on gains	Depends on the fund and the investor’s tax residence	Capital gains on sale are taxable in Portugal
Day-to-day management	Handled by the fund manager	Maintenance, repairs and tenants
Ongoing fees	Annual management fee, often 1 to 2 per cent	Letting agent fees, often 10 to 15 per cent of rent

If you are comparing funds for a golden visa application, our Portugal residency page explains the qualifying investments and how we help investors assess them.

Planning to live in Portugal

Owning a home in Portugal still has emotional appeal, but for the golden visa itself the fund route is now the only practical investment option for most applicants. It also offers a largely hands-off way to hold the investment while you get to know the country.

Investors should plan for a longer route to citizenship than before. Organic Law 1/2026, in force since 19 May 2026, requires most non-EU nationals to complete ten years of legal residence before applying for Portuguese citizenship. Many funds have holding periods of six to ten years, so it is worth checking how a fund’s exit timeline fits your own plans.

If you plan to live or retire in Portugal, this period gives you time to explore different regions before deciding where to settle. Investors in the United States may be able to use certain retirement accounts to fund the investment, subject to US tax advice.

If your budget allows, you can still buy property alongside the fund investment, or rent a home while you decide. For most international investors, the fund route remains the most flexible way to obtain a Portugal golden visa.

If you would like to talk through how these rules might apply to your own circumstances, our team would be glad to help. You can call +357 979 42 388 or write to us through our contact page.

Sources

• Diário da República: Law 56/2023 (Mais Habitação)
• Diário da República: Organic Law 1/2026 (Portuguese nationality)
• AIMA, Agency for Integration, Migration and Asylum (Portugal)
• Portal das Finanças: Portuguese tax authority

This article is for general information only and does not constitute legal, tax or investment advice. Figures are stated as of 2026 and may change; confirm current requirements with the relevant authority and an independent adviser before acting. AT Express is a private consultancy and is not affiliated with any government or official programme.