Summary of Advantages of Portuguese Funds Investing in Immigrants

With the new regulations ending residential property investment in Lisbon, Porto and other coastal areas from 1 January 2022, more and more people want to obtain Portuguese gold visas through fund investment. Fund Investment was launched in 2018, which is relatively new compared to the real estate investment route launched in 2012. From 1 January 2022 it will increase to € 500,000. Before that, the investment only needed 350000 euros. It can be seen that more and more foreigners are choosing to invest in Portuguese funds. What are the advantages of Portuguese funds investing in immigrants in 2022? EasyGo Easy Travel International is described in detail in this article.

1. diversification

Fund investments provide a wider range of diversified options for multiple companies or real estate projects. There are also provisions on the proportion of funds in the management regulations document. If someone wants multiple options, they can also split the required 500,000 euros into multiple funds.

2. industry choice

The fund invests in various industries and provides a wider range of choices (real estate, agriculture, early-stage technology start-ups, healthcare, blockchain, industry, ESG-focused companies, etc.).

3. reduce setup costs

These funds typically cost less to set up than real estate purchases. For the purchase of real estate, there are fees related to finding real estate, legal representation, notarization fees, taxes (real estate transfer tax-IMT and stamp duty). The choice of commercial real estate may be different because some developers bear the IMT tax themselves, which constitutes most of the costs associated with the purchase.

4. May Lower Taxes

Fund investments are usually more tax-efficient than real estate investments, but that depends on the tax regulations of your country. Portuguese non-residents are not required to pay tax on capital gains and dividends of the Fund. For real estate, you must pay various taxes in Portugal every year and declare these taxes. If you plan to set up a tax home in Portugal, the fund investment method will certainly be more tax-efficient.

5. is easier to quit

When the fund investment cycle ends, you do not need to find a buyer for your investment. The successful divestiture of assets is the responsibility of the fund manager. Some funds also allow investors to exit early if they obtain citizenship/permanent residency before the fund's end date. Selling real estate requires time and additional expenses (agency fees, legal fees, capital gains tax, etc.), which will increase a lot of costs.

6. potential higher returns

The target total rate of return for many funds is between 7-10% per year; the typical rental rate of return for real estate is 3-4%. Of course, we all know that the goal is not guaranteed, and depending on the real estate market price in the next few years, it brings little lower overall return.

7. funds are regulated

CMVM's primary responsibilities are to protect investors, regulate and approve funds. They also need to be audited annually by third-party companies. Real estate does not have such a regulator, so investors need to rely more on their own due diligence and the help of lawyers.

In short, the Portuguese fund has many advantages in investing in immigration. For those who want to live in Portugal in the near future and want to start obtaining EU residency or citizenship as soon as possible, the Portuguese Fund Investment Immigration is an excellent opportunity and cannot be missed!