This webinar provides an overview of the Portuguese residence by investment program, the program’s advantages, financial and other requirements, and why it has been so successful. The webinar explores some of the preferred investment routes and historical applicant data.
The Portuguese Residence by Investment program was launched in 2012. To date, more than 12,000 residence visas have been issued through the program, and around 6 billion euros of foreign investment has entered the Portuguese economy.
One of the reasons for the popularity of the program is the limited physical presence requirement combined with a predictable path to citizenship. An applicant only needs to be in Portugal for seven days in their first year of residence, fourteen days during years two and three, and fourteen days during years four and five.
There are several ways of applying to the Golden Visa program. Investing in real estate has been the preferred route for most applicants. However, since the opening for investment in venture capital funds, and changes to where an applicant can purchase property in the country, there has been a shift in demand.
Venture Capital (VC) Funds are highly regulated and transparent structures for applicants to invest in. A VC fund comprises a Fund Manager, Fund Advisor, and Auditor. The VC fund investment is typically a great deal more tax-efficient than the real estate options.
The Impacto Fund is managed by STAG Fund Management, which is regulated by CMVM (Portuguese regulator). The fund determines which industries, companies, and sectors to invest in and the best strategy to deliver a sound-performing investment. Impacto Capital, as a Fund Advisor, thus provides potential deals to STAG.
The Impacto Fund started in February 2021 and the subscription period will end in February 2023. The fund will close in February 2029.
The Impacto Fund has a different approach to the market because of its debt structure. The fund will be, in its majority, a debt holder, providing considerable advantages to the investors that value capital preservation.
As a debt holder, the fund will be prioritized in terms of the cash flows it will receive interest on the investments performed. These same investments will always be collateral backed with independent valuations performed by the Fund Manager.
Another advantage of The Impacto Fund is the concrete pipeline of opportunities that it will invest in over the next few years. This is incredibly important as the immediate capital deployment removes much of the operational risks involved in a fund. Additionally, investors in The Impacto Fund can personally visit projects under the fund’s investment arm and can clearly understand the company’s strategic investment view.
Impacto Capital, as a real estate developer, has vast international experience. It has completed multiple successful investment projects over several years. To date, the developer has completed eight residential projects. Currently, there are six ongoing real estate projects that will be completed in the near future.
Impacto Capital chose Lisbon and Porto as the development hub for their investments because they are the country’s largest and most populous cities. The company considers that these metropolitan European cities will hold their value the strongest in an ever-changing economic climate.
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