The Golden Visa fund market launched in 2018 and the market is now maturing with a diverse array of funds now present. With little track record and a lot to choose from, this can be overwhelming as a new investor who is investing in Portugal for the first time. In this article I outline four key things that I would look for in my Golden Visa investment.

Firstly, with an initial focus on capital preservation, I would look at the diversification within the fund. Funds which are considered ‘balanced’ pose less risk given there is often diversification across developer, asset class, acquisition strategy, geography, currency etc. A fund which has an allocation across these facets does well to mitigate possible risks and offers downside protection for investors. The EQTY Capital fund is an example where the allocation is split across a ‘platform’ of different developers. Whilst, broadly speaking, funds which have assets concentrated in a single development / developer hold more risk, especially in cases where the developer is self-financing their own development through the capital raised in the fund.

Secondly, I would look at the Management Team. Ultimately, the Golden Visa is a long-term investment, so conviction in the decision makers within the fund is of paramount importance. I like to look at qualitative aspects, such as their domestic and international experience and the team’s commitment to Portugal and its macroeconomic fundamentals. Teams with extensive experience, not only in their area of investing, but also fund management and financial services more broadly, is often a big plus. An example of a team with strong experience would be the Portugal Gateway fund, who were pioneers of the Venture Capital space in Portugal. On the flipside, teams that are very small with only one decision marker have a lot of ‘key-man’ risk- remember this is an investment with a multi-year time period.

Thirdly, the exit strategy of the fund and how it effectively plans to sell off the assets at the end of the fund term is key, as this is ultimately when investors receive their money back. Here, I not only look at how liquid the underlying assets are, but also the likelihood of selling these assets, based on the team’s track record in selling similar assets and their professional network. I particularly like to see multiple exit strategies and a team that can show it will be agile and dynamic to ever-changing market conditions.

Finally, funds where the remuneration incentives are aligned between the Fund Advisor and investor is key. Fee structures where the Fund Advisor is rewarded on good fund performance, rather than a large annual management fee, ensures that the Advisor is working in the best interests of the investor. It means that the Advisor is correctly incentivised to produce the best possible returns for the investors.

The information above is general in nature and should not be considered financial advice.

If you would like a bespoke consultation on the Golden Visa process, please get in touch with Kurran Sachdeva at