Portugal Launches Investigation into Golden Visa Funds Amid Controversy

Portugal has initiated an investigation into the activities of several venture capital funds linked to the Golden Visa program, following complaints from local lawyers. This inquiry particularly targets funds that offer a “guaranteed buyback agreement”, promising investors a full return on their capital upon fund maturity while granting them permanent residency.

What is a Buyback Agreement?

A Buyback Agreement is a contract where the seller commits to repurchase property at a specified price within a defined period. Although common in real estate, the legality of such agreements in the context of fund managers and third parties remains uncertain, raising questions about the regulatory framework governing these funds.

Changes to the Golden Visa Program

In October of last year, President Marcelo Rebelo de Sousa approved the “More Housing” bill, leading to alterations in the Golden Visa Program as part of efforts to combat the housing crisis. While the popular real estate investment option has been curtailed, other investment avenues under this program remain open.

Rising Interest in Golden Visa Applications

Despite ongoing scrutiny of the Golden Visa Program, interest from foreign investors has surged. A recent analysis from the Agency for Integration, Migration and Asylum (AIMA) indicated that the number of Golden Visa applications has dramatically increased. In 2023, applications from families rose to 2,901, up from 1,588 in 2022, while individual investors grew from 1,281 to 1,554.