The clock is officially ticking for investors with sight set on Portugal’s Golden Visa. While your investment may seem like a large sum, it inevitably sets up life for you and your family abroad, while also enabling investors to expand their horizons. One of the means of securing your Golden Visa into Portugal can be through private equity funds which are an efficient and effortless alternative.
Understanding private equity funds
According to Investopedia, private equity funds are an alternative investment class and consists of capital that is not listed on a public exchange and is composed of funds and investors that directly invest in private companies.
In order to attract foreign investment, Portugal offers specific tax regimes for private equity funds. These funds have distinct tax advantages over other investment options such as directly purchasing property. Private Equity Funds offer an affordable initial investment but also provide a more attractive income investment vehicle than a direct real estate asset.
“Typically, when people want to acquire bricks and mortar, they like to visit the location, and be selective. The benefit of a fund is that sort of care and choosing is taken on by professionals who are able to spread that risk across 40-60 prime assets,” shares Michael Maxwell, Head of business development at EQTY Capital.
An attractive investment
Private Equity Funds offer a simple and low maintenance investment route. Providing a more affordable and transparent investment route, Private Equity Funds have less expectations than for those who purchase directly into real estate.
In many cases a standard property investment of €500 000 will be required with added transfer fees, stamp duty, registration and notary costs, whereas through the fund route, you only require a minimum investment of €350 000. Avoid the time and frustration of dealing directly with real estate undertakings, from fees, tenants and building insurance to the mortgage and conveyancing processes.
The fund route also allows you to exit the investment easily rather than purchasing property and having to wait to sell the asset. The Fund market is a highly regulated one, which offers foreign investors peace of mind as the fund manager, Custodian Bank and CMVM (regulator) supervises all activity.
“We decided to create a platform that allowed people access to top quality opportunities and spread it across a diversified portfolio, delivered by developers with strong reputations and track records. Part of putting our platform together was grouping like-minded shareholders, that have personally invested in Portugal, some of whom have also gone through the process,” explains Garth Martin, Co-founder of EQTY Capital.
Portugal property with vision
“Through these private equity funds, you will be exposed to various investments, asset classes and locations. We have partnered with EQTY Capital, to ensure that investors have hassle-free and reputable opportunities when looking to invest into Portugal property. EQTY Capital provides access to a carefully selected portfolio from over €4 billion across Portugal. Private Equity Funds have proven to create a seamless investment model for foreign investors and see good returns,” explains Stuart Ferguson, Director of 12 Star Capital.
Opting to invest in Private Equity Funds through EQTY Capital and 12 Star Capital means you will have access to ‘cherry picked’, preferred units from the most desirable projects, that are being delivered by Portugal’s leading property developers. Contact the 12 Star Capital team to learn more about the private equity fund options available and how you can secure your Portugal Golden Visa prior to changes taking place.