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Portugal Golden Visa in Private Equity Funds vs Residential Property

Updated: Apr 30

A new paradigm for Portugal's 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 Porto and Lisbon no longer qualify.

Portugal Golden Visa in Private Equity Funds vs Residential Property_YPT Golden Visa & Investment

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:

Private Equity Funds vs Residential Property Comparison 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 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 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

At YPT Golden Visa & Investment, we see our clients as family, so we worry about them and care about them. They matter.

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 we believe we should be anyone’s priority if they are considering a Portugal Citizenship by Investment Visa, aka Golden Visa.

Contact us for a free consultation, or click here for more information on the Portugal Golden Visa.

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