Real Estate vs Investment Funds: The Best Path for Portugal’s Golden Visa Today

Portugal’s Golden Visa program has always been a magnet for international investors. But since the government removed residential real estate from the qualifying options in 2023, the game has changed.

Today, if you’re considering residency in Portugal through investment, you’re probably stuck at this crossroads:

Should you go for investment funds, or is real estate still worth looking at in some form?

Let’s break it down without the sales pitch, so you can make a decision that actually works for you.

How Portugal’s Golden Visa Landscape Has Shifted

The old model was simple. Buy property, get residency. That’s what drew thousands of applicants in the past decade.

But in 2023, Portugal shifted gears. Residential real estate is no longer eligible for the Golden Visa. That’s pushed many investors to look at alternative routes, like funds, commercial properties, or cultural investments.

If you’re still figuring out the latest rules, MovingTo outlines the updated options. It’s a solid place to start.

Why Investment Funds Are Stealing the Spotlight

Here’s the thing: Funds are now the most straightforward way to secure Portugal’s Golden Visa.

These are regulated Portuguese venture capital or private equity funds. They usually invest in sectors like tech, energy, hospitality, or healthcare. Some funds focus on local startups. Others back large-scale infrastructure or commercial projects.

The minimum investment is €500,000. But the appeal is more about simplicity and diversification. You don’t need to manage property, deal with tenants, or worry about maintenance.

Plus, reputable funds are managed by professionals with local expertise. For many, that alone is worth the entry price.

Key Advantages of Choosing Funds Over Property

Let’s get practical. Why are funds the preferred option for Golden Visa applicants right now?

• Simplicity: No property visits, no legal headaches about land titles or tenant laws.
• Diversification: Your money goes into multiple assets, reducing risk.
• Professional Management: Fund managers handle everything.
• Tax Efficiency: Many funds have favourable tax structures. Some even avoid capital gains tax until withdrawal.
• Remote Process: You can invest without setting foot in Portugal initially.

That last point matters, especially if you’re just starting to explore your options from abroad.

Can Real Estate Still Play a Role?

Technically, yes—but with limitations.

Residential properties in Lisbon, Porto, and most coastal areas are off the table for Golden Visa purposes. But commercial real estate still qualifies. So do hospitality-related investments, like hotels or serviced apartments.

This leaves room for creative strategies. Some investors are pooling funds into commercial property ventures or real estate development projects that meet the visa criteria. But keep in mind, these often involve higher risk and longer timelines.

You’re also competing with institutional investors in this space, which changes the dynamics compared to buying a personal apartment.

Liquidity: The Elephant in the Room

When you invest in property, it’s tangible. You can visit it, rent it, or sell it—eventually.

Funds are different. Many have a lock-in period, typically around 6 to 8 years. Some may offer early exit clauses, but penalties or restrictions often apply.

This means you need to be comfortable with having your money tied up for the long haul. If liquidity is your top concern, real estate might give you more flexibility—though the lack of residential options limits this now.

Understanding the Risk Profile

Both options come with risks. But the type of risk is different.

• Funds: Market volatility, fund management performance, and sector-specific risks.
• Real Estate: Market downturns, tenant issues, maintenance costs, or regulatory changes.

Here’s what this really means: If you pick a fund, you’re trusting a management team to make smart decisions. If you pick property, you’re taking on more of the legwork yourself. Decide what you’re more comfortable with.

Residency vs Return: Which Matters More?

Let’s not forget why most people choose the Golden Visa in the first place. It’s about residency, not just return on investment.

The Golden Visa leads to residency rights, eventual citizenship (if you want it), and visa-free access to the Schengen area. Whether your €500,000 grows significantly is often a secondary concern for applicants.

That said, funds do have the potential for solid returns—especially those focused on tech or renewable energy. But don’t treat this like a typical profit-driven investment. It’s primarily a residency strategy with financial benefits on the side.

Choosing the Right Path for You

So, what’s the best route?

If you want a hands-off process, are okay with long-term investment, and like the idea of backing growth sectors, funds make sense.

If you prefer tangible assets, are comfortable navigating commercial real estate, and can deal with more complexity, property might still be your path—just not residential.

No matter which you choose, work with trusted local advisors. Look for funds regulated by the CMVM (Portugal’s securities market commission). And if you lean toward real estate, make sure the project is actually Golden Visa eligible.

Making Your Move with Confidence

The bottom line? Portugal’s Golden Visa is still a viable gateway to European residency. But the landscape has shifted.

Take the time to weigh your personal goals—whether that’s wealth preservation, lifestyle flexibility, or setting up a plan B for your family. Once you’re clear on that, the right investment path becomes obvious.

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