Portugal Golden Visa Cost Comparison: Investment Fund Vs Real Estate

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Portugal Golden Visa Cost Comparison Investment Fund Vs Real Estate

Table of Contents

Investors from all over the world have already begun their applications in anticipation of the imminent revisions to the Portugal Golden Visa. While some people prefer the traditional route of “real estate,” others are more interested in investing in a mutual fund. Both investment options have their own set of benefits and drawbacks.

Portugal Golden Visa Cost Comparison: Investment Fund Vs Real Estate

Compare the costs of getting a Portuguese golden visa.

Expenses associated with the Investment Fund

  • Lower Prices

Unlike property investments, investment funds do not incur needless charges such as transfer fees, stamp duty, title transfer, and so on. You also won’t have to spend money on furnishings and other necessities that come with purchasing a home. All you have to do is make a €500,000 one-time investment.

  • Lower taxes

You don’t have to pay any income or capital gain tax on your investment fund if you’re a non-tax resident of Portugal. Your earnings from real estate, on the other hand, will be subject to a 30 percent withholding tax. In addition, the capital gain is taxed at a low flat rate of 28 percent. Whether or not you are a tax resident, you will be required to pay income tax each year and capital gain tax if you sell your home.

  • Easier to Manage

When applying for a program through an investment fund, you only need to meet the minimum investment requirement and complete other procedures. Your money will be managed and monitored by a fund manager if you choose to invest in a fund. All you have to do is pay the management fees, which are a fraction of the expense of managing real estate. It’s possible that you’ll need to engage a property management company to look after your real estate investment, which is both inconvenient and costly. You may have skilled specialists who care about your investment with money, and you only have to pay a fraction of the cost of real estate management.

The Cost associated with the Real Estate Option

  • Increased Control

Despite the fact that this post is about costs, we believe it is appropriate to discuss the advantages of real estate over investment funds. One of these is having more control. You’re free to do whatever you want once you’ve made your investment. It’s yours to live in, rent out, or sell. The fund manager, on the other hand, directs the investment in the funds.

  • Reduced Burden

A rigorous Know-Your-Client (KYC) process is required for fund investment. You’ll have to show proof of your income and where it comes from. Real estate investment, on the other hand, is less complicated and does not carry this responsibility.

Is it better to invest in an Investment Fund or Real Estate?

It is debatable. Property in Portugal is the way to go if you’re seeking a monthly income from your investment. Investing in funds, on the other hand, could be a good option if you desire bigger returns on your investments that expand over time.

The value of real estate in Portugal, on the other hand, will continue to rise. It’s a one-time investment with numerous advantages. Investing in mutual funds, on the other hand, can be risky. In the end, the decision is yours. Choose the one with which you are most at ease.

How can we assist you in obtaining a Portugal Golden Visa?

We are a financial advising service that assists investors in obtaining additional residency or citizenship. Hundreds of investors from all over the world have used our services to obtain a Portugal Golden Visa, whether through an investment fund or a real estate purchase.

Our financial consultants will assist you in selecting the appropriate investment and will accompany you throughout the Golden Visa application process to ensure that everything goes as smoothly as possible. To learn more about our services and to begin your application, get in touch with us today!

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