The advantages of investing in Portugal through Private Equity funds

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There is a limited time to invest in the Portugal Golden Visa before the changes take effect. There are different ways to invest abroad and to diversify your portfolio.

Time is officially running out for investors in view of the Portugal Golden Visa. While your investment may seem like a large sum, it inevitably opens the lives of you and your family abroad, while allowing investors to broaden their horizons. One of the ways to get your Golden Visa in Portugal may be to use private equity funds which are an efficient and effortless alternative.

Understanding private equity funds

According to Investopedia, private equity funds are an alternative investment class and consist of capital that is not publicly traded and is made up of funds and investors that invest directly in private companies.

In order to attract foreign investment, Portugal offers specific tax regimes for private equity funds. These funds have distinct tax advantages over other investment options such as the direct purchase of real estate. Private equity funds offer an affordable initial investment but also provide a more attractive income investment vehicle than a direct real estate asset.

“Usually when people want to buy bricks and mortar, they like to visit the place and be selective. The advantage of a fund is that the care and choice are supported by professionals capable of spreading this risk over 40 to 60 prime assets, ”explains Michael Maxwell, Business Development Manager at EQTY Capital.

An attractive investment

Private equity funds offer a simple, low-maintenance investment route. Providing a more affordable and transparent avenue of investment, private equity funds have lower expectations than those that buy directly into real estate.

In many cases, a standard real estate investment of € 500,000 will be required with additional transfer fees, stamp duties, registration and notary fees, while by way of the fund you will only need with a minimum investment of € 350,000. Avoid the time and frustration of dealing directly with real estate companies, from fees, tenants, and building insurance to mortgage and property transfer processes.

The funds route also allows you to easily exit the investment rather than buying a property and having to wait to sell the asset. The fund market is highly regulated which provides peace of mind to foreign investors as the fund manager, custodian bank and CMVM (regulator) oversee all activities.

“We set out to create a platform that allows people to access top quality opportunities and spread it across a diverse portfolio, provided by developers with a solid reputation and track record. Part of building our platform was to bring together like-minded shareholders who have personally invested in Portugal, some of whom have also gone through the process, ”says Garth Martin, co-founder of EQTY Capital.

Portugal property with vision

“With these private equity funds, you will be exposed to a variety of investments, asset classes and locations. We have partnered with EQTY Capital to ensure investors have reliable and hassle-free opportunities when looking to invest in real estate in Portugal. EQTY Capital provides access to a carefully selected portfolio from over 4 billion euros across Portugal. Private equity funds have proven their ability to create a seamless investment model for foreign investors and generate good returns, ”said Stuart Ferguson, Director of 12 Star Capital.

Choosing to invest in private equity funds through EQTY Capital and 12 Star Capital means that you will have access to privileged units “chosen” from the most sought-after projects, which are delivered by the main real estate developers in Portugal. Contact the 12 Star Capital team to learn more about the private equity fund options available and how you can secure your Portugal Golden Visa before any changes take place.


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