What is Investment Fund Route? Definition & Guide
A Golden Visa qualifying option where the applicant invests in a government-approved investment fund rather than purchasing real estate.
The investment fund route is a qualifying option under several Golden Visa programs where the applicant subscribes to a government-approved investment fund instead of purchasing real estate or making a direct business investment.
Portugal's Golden Visa program uses the fund route as its primary qualifying option following the removal of residential real estate in 2023. The minimum subscription is €500,000 into a qualifying Portuguese investment fund. The fund must be registered with the Portuguese Securities Market Commission (CMVM) and must commit to investing at least 60% of its capital in Portuguese companies.
Hungary's Golden Visa, launched in 2024, also uses a fund route with a €250,000 minimum investment in a government-approved real estate investment fund.
Fund investments are typically locked for the duration of the Golden Visa (five years in Portugal). Returns vary but have historically been in the 4% to 8% range for Portuguese qualifying funds. The applicant's capital is invested alongside other fund participants, and the applicant receives their share of returns (or losses) at the end of the investment period.
The fund route has advantages over real estate: it does not require property management, it is more liquid at the end of the lock-up period, and it avoids property transfer taxes and maintenance costs. The disadvantage is less control over the specific investment and exposure to fund manager performance.
Why It Matters for Golden Visa Applicants
The fund route is now the primary path for Portugal's Golden Visa after residential real estate was removed in 2023. Applicants who prefer a hands-off investment without property management responsibilities, tenant issues or renovation projects should consider this option. The five-year lock-up period aligns with the residency timeline for permanent residency or citizenship applications. However, applicants should evaluate fund manager track records, fee structures and the underlying investment strategy before committing capital. Returns are not guaranteed, and the investment carries market risk.
Example
"He subscribed €500,000 to a CMVM-registered Portuguese venture capital fund, qualifying for the Golden Visa through the investment fund route."