Golden Visa Through Investment Funds: Legal Checklist Before You Invest (CMVM, Custody, Redemption)

Since the purchase of real estate stopped qualifying for the Golden Visa, subscribing to units in investment funds has become the option most sought after by Brazilians. The minimum amount is €500,000, and the law requires the fund to meet specific requirements. If one of them fails, the problem may only appear years later, when renewing the residence permit, when the money is already invested and it is not easy to get out.

This article is a legal checklist. It does not recommend funds or assess returns or financial risk, which are matters for investors and their financial advisers. The goal is to show what to check in the fund's documents, with the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, CMVM) and in the flow of money before signing the subscription form. For an overview of the options currently in force, see Golden Visa in 2026: the options that remain in force.

What the law requires of the fund

This option is set out in Art. 3(1)(d)(vii) of Law 23/2007, the Foreigners Act (Lei de Estrangeiros), as amended by Law 56/2023 (Lei). It requires the transfer of at least €500,000 for the acquisition of units in collective investment undertakings that are:

• not real estate funds;
• set up under Portuguese law;
• with a maturity of at least five years at the time of the investment;
• with at least 60% of the value of the investments made in commercial companies headquartered in Portugal.

In addition, paragraph 5 of the same article prohibits the investment activity from being aimed, directly or indirectly, at real estate investment. The 20% reduction for low-density areas does not apply to funds. The investment must be held for at least five years, counted from the grant of the permit. According to AIMA, the amount may be split among several funds, provided that all of them meet the requirements, the total reaches the legal minimum and the money comes from an international capital transfer.

Checklist 1: the fund and the management company are registered with the CMVM

Portuguese funds are regulated by the Asset Management Regime (Regime da Gestão de Ativos, RGA), approved by Decree-Law 27/2023 (Decreto-Lei). Setting up a collective investment undertaking requires authorization from the CMVM or, in the case of privately placed alternative investment undertakings, prior notification to the CMVM (Art. 22(3) of the RGA). The authorization covers approval of the constitutive documents and of the choice of depositary (Art. 60). The management company, in turn, may only start operating with authorization from the CMVM (Art. 22(1)).

What to check:

• whether the fund appears on the CMVM website, with the same name, the same type (open-ended or closed-ended) and the same management company stated in the proposal;
• whether the management company is registered with the CMVM and authorized to manage that type of undertaking;
• whether the fund has already been set up or is still in its initial subscription period, and what happens to the money if it is not set up.

Do this check directly on the regulator's website, and not only in marketing materials or documents sent by the seller.

Checklist 2: the non-real estate nature

The fund must be non-real estate by its nature and its investment policy. The name is not enough. Read in the management regulations:

• the investment policy and the permitted assets;
• whether the fund may invest in companies whose main activity is the purchase, development or operation of real estate;
• whether there are investments in hotels, residences, developments or other projects whose economic value depends mainly on real estate.

Because the law prohibits indirect real estate investment, a fund that invests in companies whose assets are essentially real estate may be challenged by AIMA. This is one of the points that most calls for legal analysis before investing.

Checklist 3: the 60% in companies headquartered in Portugal

The law requires at least 60% of the value of the investments to be made in commercial companies headquartered in Portugal. Check:

• whether this limit is written into the management regulations as a mandatory rule, and not just as a commercial objective;
• within what period the fund intends to reach the 60% and how it measures this percentage;
• whether the management company undertakes to issue the statement required by AIMA, which attests to the viability of the capitalization plan, the maturity of at least five years and the investment of at least 60% in companies headquartered in Portugal.

This statement is part of the application documents. Without it, the process does not move forward.

Checklist 4: the fund's maturity and term

The five-year maturity is measured at the time of the investment. The five-year holding period, however, runs from the grant of the permit, which usually happens months later. A fund whose remaining term is very close to five years may end before the investor completes the required period. Check:

• the fund's date of incorporation and duration in the management regulations;
• whether an extension is provided for and under what conditions;
• what happens to the units when the fund is liquidated.

Under the RGA, the duration of a closed-ended alternative investment undertaking may be extended by resolution of the unitholders' meeting, on a proposal from the management company, six months before the end of its term. Unitholders who vote against may redeem their units, at no cost, within one month (Art. 215). For Golden Visa holders, this redemption may affect renewal. For this reason, the duration must be compatible with the entire timeline of the process.

Checklist 5: redemption rules

Funds may be open-ended or closed-ended. In open-ended funds, units may be redeemed at the request of unitholders, under the terms of the constitutive documents. In closed-ended funds, units cannot be redeemed, except in the cases provided for by law or in the regulations (Art. 4 of the RGA). Check:

• whether the fund is open-ended or closed-ended and what the redemption windows and conditions are;
• the redemption fees and payment periods;
• the cases in which redemptions may be suspended, which may be decided in exceptional circumstances by the management company or the CMVM (Art. 17(4));
• whether the regulations allow redemption or liquidation proceeds to be paid in kind, that is, in assets rather than cash (Art. 17(5)).

Remember that any redemption that reduces the investment below €500,000 before the five years are up may jeopardize the renewal of the ARI (Residence Permit for Investment Activity). According to AIMA, any change to the investment on which the permit was based must be reviewed in advance.

Checklist 6: custody and depositary

The assets of a Portuguese fund are entrusted to a single depositary established in Portugal, which may be a credit institution with own funds of no less than €5 million or an investment firm that meets the legal requirements (Art. 130 of the RGA). The depositary safekeeps the assets, carries out the management company's instructions, monitors the legality of transactions and arranges the payment of redemptions and liquidation proceeds to unitholders (Art. 132).

Protection points worth checking:

• Segregation of assets: the fund is not liable for the debts of the unitholders, the management company or the depositary (Art. 12).
• Insolvency of the depositary: the fund's assets held in custody do not form part of the insolvency estate (Art. 137).
• Liability: the depositary is liable to the management company and the unitholders for the loss of financial instruments held in its custody, and this liability cannot be excluded by contract (Art. 138).
• Registration of units: the constitutive documents state the financial intermediary responsible for registration or the centralized system (Art. 18). That is where the certificate of ownership required by AIMA will come from.

Confirm that the subscription form instructs the money to be transferred to the fund's account with the depositary, and not to accounts of the management company, intermediaries or third parties.

Checklist 7: the fund's documents

The constitutive documents of a fund are the prospectus, the management regulations, the key information document for investors and, for undertakings aimed only at professional investors, the information specific to those investors (Art. 84 of the RGA). Closed-ended alternative funds may not have a prospectus, but they still have management regulations (Art. 85(2)). Ask for and read:

• the up-to-date management regulations, with the investment policy, duration, fees, redemptions and liquidation;
• the key information document (DIF or KID), where applicable;
• the latest annual reports and accounts, with the auditor's report (Art. 139);
• the subscription form and any additional agreement proposed.

Be wary of differences between what the marketing material says and what is in the regulations. In case of conflict, the regulations prevail.

Checklist 8: costs and conflicts of interest

The management company, the depositary and the distributors must act in the exclusive interest of the unitholders (Art. 10 of the RGA). Even so, it is advisable to check:

• all fees: subscription, management, custody, performance, redemption and other expenses charged to the fund;
• whether the companies the fund invests in are linked to the management company, its partners or whoever is selling the product;
• who receives a commission for the sale and whether this is disclosed.

Checklist 9: the path of the money

AIMA requires a statement from a credit institution authorized by or registered with the Bank of Portugal (Banco de Portugal) attesting to the actual transfer of the required amount. In practice, the flow is usually:

1. a remittance from Brazil, through a regular foreign exchange transaction, to an account in the investor's name at a bank in Portugal;
2. subscription of the units from that account, with a transfer to the fund's account;
3. issuance of the bank statement and of the certificate of ownership of the units, free of liens and encumbrances.

Because the units must be free of liens, they cannot be pledged to finance the investment itself. The bank will also ask for proof of the source of funds, so it is worth organizing early on the income tax returns, contracts for the sale of assets or profit distributions that explain your wealth.

In Brazil, units in foreign funds are financial investments abroad under Law 14,754/2023 (Lei). Income and gains, including on redemption, must be included in the annual tax return of Brazilian tax residents, at a rate of 15% (Arts. 2 and 3). There may also be reporting obligations to the Central Bank of Brazil, depending on the value of the assets abroad. Coordinate these points with your accountant.

Checklist 10: ownership and succession

According to AIMA, the investment may be made personally or through a single-member private limited company (sociedade unipessoal por quotas) of which the applicant is a member, in which case a commercial registry certificate is required. The choice has tax and succession consequences. Before subscribing, decide who will be the holder, how the investment fits into the couple's matrimonial property regime and what happens to the units and to the family's residence in the event of death. See our page on international succession.

Warning signs

• promises of a fixed return or of full repayment of capital;
• a fund or management company that does not appear on the CMVM website;
• a request to transfer the money to accounts that are not the fund's account with the depositary;
• a fund whose portfolio depends mainly on real estate, even through companies;
• a remaining fund term very close to five years;
• refusal to provide the management regulations or the reports and accounts before subscription;
• pressure to sign quickly, without time for analysis.

Investment documents requested by AIMA

• statement from the credit institution attesting to the actual transfer of the amount;
• certificate of ownership of the units, free of liens and encumbrances, issued by the entity responsible for registering the holders;
• statement from the management company on the viability of the capitalization plan, the maturity of at least five years and the investment of at least 60% in companies headquartered in Portugal;
• commercial registry certificate, if the investment is made through a single-member company;
• sworn statement (declaração sob compromisso de honra) that the quantitative and time requirements of the investment will be met.

How Sene & Araújo works

Sene & Araújo has lawyers admitted in Brazil and Portugal, with offices in São Paulo and Albufeira. We carry out legal due diligence on the fund chosen by the investor against the requirements of the Foreigners Act (Lei de Estrangeiros): non-real estate nature, maturity, investment of 60% in companies headquartered in Portugal, CMVM registration, depositary, redemption rules and the management company's statements. We do not recommend funds or products or give opinions on returns. We then handle the application with AIMA, family reunification and renewals. See our page on the Golden Visa or talk to our team before signing the subscription.

• Law 23/2007 (Foreigners Act), consolidated version — Arts. 3, 90-A, 98 to 107
• Law 56/2023 of October 6 (Arts. 42 to 44; new wording of Art. 3 of Law 23/2007)
• AIMA — Residence Permit for Investment (Art. 90-A)
• AIMA — Frequently asked questions about the ARI
• Decree-Law 27/2023 — Asset Management Regime (Arts. 4, 10, 12, 17, 18, 22, 60, 84, 85, 130, 132, 137 to 139 and 215)
• Regulatory Decree 84/2007, Arts. 65-A to 65-K
• Law 14,754/2023 (Arts. 2 and 3) — financial investments abroad
• CMVM — Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários)

Sene & Araújo Sociedade de Advogados team. Content prepared and reviewed by the firm's lawyers, admitted to the Brazilian Bar Association (OAB) and the Portuguese Bar Association (Ordem dos Advogados), with offices in São Paulo and Albufeira. The provisions cited were checked against the official sources listed above. Meet the team.