How to Evaluate a
Golden Visa Fund.

A regulated Portuguese Fund is authorized and supervised by the CMVM, Portugal’s securities regulator, and managed by a licensed SGOIC, or Fund Management Company. Both can be verified on the CMVM’s public registry. This framework provides assurance that the Fund’s operations, custody, and investor protections follow established European standards.

Regulated Funds also exist in other European markets such as Greece. Greece’s venture capital companies (AKES) are supervised by the Hellenic Capital Market Commission, offering investors a regulated structure under domestic securities law.

Italy does not provide a dedicated Fund-based pathway for residency, favoring direct investments into Italian companies. Company structure has been leveraged as a Fund shell in some cases. The Commissione Nazionale per le Società e la Borsa (CONSOB) is the regulatory authority overseeing Italian securities markets. Prudent investors in any jurisdiction are cautious about creative investment structures.

Offshore Funds that solicit or accept American investors must also meet U.S. regulatory standards. They are required to register securities offerings or qualify for an exemption from registration and to meet U.S. private placement memorandum and disclosure standards. Non-compliance among offshore Funds remains widespread, which increases risk for investors. Enforcement action can destabilize a Fund, directly affecting its investors.

Many Portuguese Golden Visa Funds are closed end FCRs, typically organized as Venture Capital or Private Equity Funds. A growing segment of the market includes open end UCITs, which are collective investment undertakings regulated under the European UCITS Directive. A UCIT (Undertaking for Collective Investment in Transferable Securities) is a liquid, diversified investment Fund. A Fund’s structure determines how profits are distributed, how capital is returned, and whether the investment qualifies for residency eligibility. The Fund’s Management Regulations outline all of this as well as investor rights and recourse.

The Fund Manager (SGOIC) holds fiduciary responsibility for the Fund’s assets and must qualify for an Investment Adviser exemption under U.S. law if the Fund accepts American investors.

If a separate Fund Sponsor or Fund Promoter provides investment advice or helps select portfolio companies, that person or entity is not covered under the Manager’s exemption and must independently hold Investment Adviser registration in the United States. It is good practice to verify regulatory registrations and credentials in all jurisdictions where a Fund operates or

Sound governance benefits from clear boundaries between management and beneficiaries. Review whether related parties are buying, selling, or valuing assets within the same network. Transparent Funds disclose such relationships and manage them through independent oversight. Determine whether the Manager, Sponsor, or related parties are invested on the same terms as investors, and understand how affiliated service providers are chosen and compensated. This clarity strengthens confidence and accountability.

A thoughtful strategy pairs sector expertise with a disciplined approach to capital deployment. Review the Fund’s thesis, target industries, and planned exits. Assess whether leadership has experience in those sectors and a record of growing and returning capital to investors. It is also worthwhile to consider whether the investment opportunity would be compelling in the absence of the Golden Visa benefit, and whether the Fund includes any institutional investors that may signal quality and professional oversight.

Semi-annual statements are standard in Portugal, along with annual audited financials. U.S. investors benefit when a Fund provides sufficient data for IRS compliance, including PFIC (Passive Foreign Investment Company) reporting support. PFICs that hold lower-tier PFICs can create added reporting complexity and potential tax exposure, so investors should clarify this structure in advance. Cross-border tax counsel can help ensure reporting and structuring are aligned with U.S. obligations. Offshore Fund representatives may not be trained in U.S. tax requirements, so professional advice adds essential context.

U.S. IRA investors should exercise extreme caution. Using IRA capital for a Golden Visa investment almost certainly constitutes a prohibited transaction under Internal Revenue Code §4975. This can immediately disqualify the IRA, trigger full taxation of the account, and potentially incur additional penalties. The use of retirement funds in this context should be presumed noncompliant unless a qualified U.S. tax attorney provides written confirmation to the contrary.

The Golden Visa application requires proof that foreign capital has been transferred to a qualifying investment. Capital transfer can be through a bank intermediary or made directly to a Fund; this varies by Fund. A well-organized Fund Manager communicates clearly with investors and timely provides the required supporting declarations for immigration processes.

Some Fund Managers are now offering custody services for Fund participation units. Consider whether you would prefer to hold Fund units in your own foreign bank account or to use the Manager’s custody service, if available. In either case, ensure you have clear documentation of ownership of the Fund participation units. When weighing custody options, consider U.S. reporting obligations such as FATCA and FBAR.

Effective governance is ongoing. Independent audits, transparent valuation methods, and regular investor updates indicate a culture of responsibility. Consider whether the Fund endows Participants with governance or voting rights and influence over decisions relating to distributions, dissolutions, and liquidations. When compliance is treated as part of fiduciary duty, investors gain stability and trust in the Fund’s long-term operations.