Investment Funds and the path to obtain residence permit in Portugal

9 June 2021
Madalena Viana Pedreira

In these pandemic times in which travel restrictions are the general rule, active investors have been looking into options that allow them to invest without travelling, quarantines and PCR tests.


In Portugal, our firm has been noticing the raise in the number of investors interested in the Investment Fund for the purpose of the residence permit through investment, more commonly known as Golden Visa.


The Golden Visa is a Portuguese successful residence programme through investment, in which holders can obtain a temporary residence permit with no need for a visa to enter Portugal, neither to travel in the Schengen area.


This is what the law now states regarding the investment funds as an eligible type of investment:


Capital transfer in an amount of € 350,000 or superior, intended for the acquisition of investment units in investment funds or venture capital funds dedicated to the capitalisation of companies, which are incorporated under Portuguese legislation, whose maturity, in the time of investment, is at least five years and at least 60% of the investment catalogue based in the national territory.


In the meantime, the Portuguese Government published on 12th February the new rules regarding the Portuguese Golden Visa. These rules will only come into force on January 1st 2022.


The legal changes will not only affect the real estate investment for residential purposes, as this type of investment will be limited to low density areas of the country, but the investment funds option will also suffer some changes.

 The new rule will be as follows:


Capital transfer in the amount equal to or greater than €500,000, intended for the acquisition of investment units in investment funds or venture capital funds dedicated to the capitalisation of small and medium-sized companies that, for that purpose, present the respective capitalisation plan and the same proves to be viable.

 

There are two important notes to keep in mind. The first is that all the Golden Visa applications submitted until the 31st December 2021 will benefit and be granted under the current rules, which means that the above-mentioned changes will be applicable only to investors and respective families who submit their application after the new Decree-Law comes into force.


The second one is especially for investors that prefer to wait after the new rules come into force. Although the amount is a bit higher, this is an indirect path to invest in real estate for residential purposes, in higher density areas, through the fund, where it was previously prohibited. This investment option is a way to go around the future forbidden investment in real estate, that will be limited from January 2022 onwards, transferring the investment from the personal sphere to the investment fund. 



Madalena Viana Pedreira

Lawyer

11 July 2025
The Portuguese Parliament has decided to postpone the vote on the proposed amendments to the Nationality Law until September 2025. The decision was taken in a meeting of the Committee on Constitutional Affairs, Rights, Freedoms and Guarantees, following pressure from several political parties who requested more time to assess the implications of the proposed reform. The delay allows for additional hearings with legal experts, immigrant associations and civil society representatives before a final vote is held in plenary session. The proposed reform introduces significant changes to the current legal framework for acquiring Portuguese nationality. Among the most impactful measures is the extension of the minimum legal residence period required before applying for naturalisation. Under the new proposal, this period would increase from the current five years to seven years for nationals of CPLP countries (Community of Portuguese Language Countries), and to ten years for applicants from all other countries. Another major change concerns the introduction of mechanisms to revoke Portuguese nationality . According to the proposal, naturalised citizens who are convicted of serious crimes — defined as those resulting in prison sentences of five years or more , within ten years of acquiring nationality — could see their Portuguese citizenship revoked by a court decision, based on a proposal from the Public Prosecutor’s Office. In addition, the reform would tighten the requirements for acquiring original Portuguese nationality through birth in Portugal. For children born in Portuguese territory to foreign parents, it would become mandatory that at least one parent has been residing legally in Portugal for a minimum of three years , instead of the current two years. Although the government initially intended to approve these changes before the summer recess, political consensus has not yet been reached. Left-wing parties have raised concerns regarding the constitutionality of retroactive revocation of nationality and the potential impact on the rights of long-term residents and immigrant communities in Portugal. In response, the parliamentary committee agreed to postpone the process and schedule a new round of expert hearings in early September. A final vote on the reform is now expected to take place later that month. Until then, the current version of the Nationality Law remains in force , including the five-year legal residence requirement for naturalisation. Applicants who meet this requirement and wish to apply under the current rules may still do so in the coming weeks.
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