An IMGW News Report
Portugal has initiated an investigation into the market activities of several venture capital funds linked to the Golden Visa programme, following complaints from local lawyers. These complaints highlighted concerns raised by applicants from North Asia, Southeast Asia, and the Middle East, particularly regarding certain funds that have been offering a “guaranteed buyback agreement.”
The “guaranteed buyback agreement” allows Golden Visa applicants to reclaim the full amount of their invested capital upon the maturity of the fund, alongside the promise of obtaining permanent residency. This contractual arrangement resembles a common practice in real estate, where sellers agree to repurchase properties at a predetermined price within a specified timeframe.
However, the legality of such buyback agreements within the context of investment funds remains uncertain. Key issues under scrutiny include the regulatory framework governing these funds and the legitimacy of third parties promoting such agreements.
This investigation comes a year after significant amendments to the Golden Visa programme. In October 2023, President Marcelo Rebelo de Sousa approved the “More Housing” bill, which introduced changes aimed at addressing Portugal’s housing crisis. These reforms eliminated the popular real estate investment option from the residency scheme but allowed other investment avenues to remain available.
Despite concerns regarding irregularities linked to the EU’s Golden Visa Programme, interest from foreign investors remains robust. Recent analysis from the Agency for Integration, Migration and Asylum (AIMA) indicates a notable surge in applications in 2023, primarily driven by American demand. Family applications rose significantly, increasing to 2,901 from 1,588 in 2022, while individual applications also saw growth, jumping from 1,281 to 1,554.
As Portugal navigates these complex issues, the outcomes of this investigation could have lasting implications for the future of its Golden Visa programme and the broader investment migration landscape.
