Portugal Citizenship by Investment in Private Equity Funds vs Residential Property
Updated: Jan 26
A new paradigm for Portugal Golden Visa started on January 1st of 2022, by amendment of the Portuguese Government. The minimum investment in Private Equity Funds increased to €500,000, from €350,000, matching the investment in Residential Properties in high-density areas of Portugal, where namely Oporto and Lisbon do not qualify anymore.
At the time to decide between these two investment options, it’s key to have a full understanding of the main costs incurred. To clarify any future doubts, please refer to the following table:
Investing €500,000 in Private Equity Funds is more cost-efficient than investing the same initial amount in Residential Property. Private Equity Funds do not pay on their acquisition any stamp duty, real estate transfer tax (IMT), annual municipal tax (IMI), rental income tax of 28%, or exit fees and are not subject to geographic restrictions like Residential Property investment is. Moreover, capital gains in Private Equity Funds are withholding tax exempt for non-residents and subject to 10% tax for residents, while in Residential Property capital gains are subject to 28% personal income tax for non-residents and residents.
In summary, Private Equity Funds offer a more cost-efficient and efficient way to invest in Portugal's Golden Visas due to their tax exemptions and lack of geographic restrictions. Furthermore, Private Equity Funds yield higher returns than Residential Property investments due to their more diversified portfolios and higher liquidity. Investing in Private Equity Funds is therefore a smarter option for those looking to apply for a Portugal Golden Visa.
At YPT, we have a team of specialists fully available to assist you with your investment decision to apply for your golden visa.
YPT Golden Visa & Investment
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We're not just saying this because it sounds good.
We take our work seriously and are passionate about our client's well-being and investments.
That’s why without a doubt we believe we should be anyone’s priority if considering a Portugal Citizenship by Investment Visa, aka Golden Visa.
So contact us by email at info@yptgoldenvisa.com for a free consultation or click here for more information.
YPT Golden Visa & Investment