Optylon Krea
IMI Official Partner
The Portuguese Golden Visa has undergone considerable changes over the past few years, but as we set on a stable path, Optylon Krea wants to address some of the most common misconceptions about the program since its last update.
Optylon Krea’s Sales Manager Manuela Luz and Tirso Olazábal, Partner at MdME, a law firm with offices in Lisbon and Hong Kong, sit down to explore some of the most common questions they get regarding the Portuguese Golden Visa in Hong Kong, starting with its current status.
Yes, the Portuguese Golden Visa is still open
Manuela: Focusing on the Hong Kong area, a question I keep getting is whether the Portuguese Golden Visa is still available. In short, the program is still alive and well.
There are many misconceptions here stemming from media outlets not fully understanding what is going on and advisors who want to shift to other programs and—sadly—just saying the program is closed because they do not offer anything other than real estate, which is no longer an eligible investment.
I want to make it clear that the program is still open. The only change is that the government removed any real estate or real estate-adjacent investment options from it.
Investors can still qualify through other investment options, and the fund option is now the most popular among investors since it is simple, quick, and beneficial.
There is still a lot of demand for Portugal’s Golden Visa in Hong Kong. Yes!
Tirso: As probably the only Portuguese law firm with an office in Hong Kong, I have kept closer tabs than most on the developments in Portugal. The Golden Visa kept running even as the government implemented the changes, but I found that the awareness about the subject among interested parties is warped. This may be due to misinterpretation of what they read and see online and the fact that other EU countries had effectively shut down their visa on investment programs.
The regulatory changes, the change in naturalization laws, and the switch from SEF to AIMA all came in quick succession, which is why many may have assumed that the program had closed.
I explain the changes in detail to investors who visit our office, and I found that many of them see no difference in the program because they were still considering the immigration aspect and haven’t gone into the investment details.
Is investment in real estate available?
Manuela: No, that has been the most significant change in the Golden Visa program. In 2023, almost 67% of all Golden Visa applications were real estate-based. The government’s decision to remove property investments when they were so popular is probably why people started thinking, “the Golden Visa is closed.”
The Golden Visa still has other investment options, with the fund category leading the way, but none of those options can be real estate-centric.
Funds that invest in real estate are also uneligible, so anything connected to property is now off the table.
This development, while major in scale, actually has little to no effect on the Golden Visa itself.
Fund investments have been prevalent, even when the real estate option existed. The percentage of Golden Visa applications under the fund option grew from 0.56% in 2019 to 28% in 2023.
This is the natural progression of the Golden Visa, and whether real estate is available or not, the fund option will continue to grow.
Tirso: This is a fundamental question. No, real estate is not available, and neither are investments directly or indirectly connected to real estate.
This is important because of the complexities of the new investment landscape. It is crucial that investors choose a fund that aligns with the Golden Visa’s requirements; if not, their applications may be rejected.
In addition, some funds have stringent contractual arrangements, so if a Golden Visa applicant invests in a fund that doesn’t qualify for the program, he or she may have a challenging time withdrawing their investment and, in some cases, may have to pay penalties.
This is why it is so important to work not only with an experienced law firm but also with a trusted fund leader in the market.
Is investing in hospitality the same as real estate?
Manuela: No, not necessarily. I think there is a misconception regarding this because of how things work in the Caribbean, where hotel shares count as real estate investments.
In Portugal, it is different. A hospitality-focused fund may be tied to real estate (if it builds projects and sells them), but most of the time, it isn’t a property-based investment channel.
Optylon Krea’s venture capital Ando Europe Fund invests in the Ando Living brand, operating companies, and subsidiaries, specializing in hospitality F&B and services.
The fund’s main focus is the hospitality sector, and since it is not involved in real estate development, it is eligible for the Golden Visa.
Hospitality offers high profit margins and is very safe, making it the best alternative to real estate under the Golden Visa.
Ando Europe Fund operates on a regional scale, which allows us to lower the risk margin and adapt quickly to changes. This flexibility means that Ando Europe Fund can capitalize on opportunities, providing greater returns for investors on the lowest risk level possible.
Tirso: Most Golden Visa investors look for low-risk venture investments. The investment itself is usually a means to an end, and in this case, they are right to prioritize risk mitigation.
This is where the hospitality sector comes in. Portugal is a highly touristic destination that is becoming more and more popular.
The number of tourists in Portugal exceeded the pre-pandemic level by 10% in 2023, and this growth is outstanding news for those with investments in the hospitality sector.
There is a fine line between hospitality management and development, so not all funds will qualify for the Golden Visa.
What is the best way to approach the Portuguese Golden Visa?
Manuela: That is a simple one. Optylon Krea is the market leader in the fund route in Portugal, with extensive experience serving over 600 investors from 40 different nationalities. We are currently advising the fifth fund of our portfolio. Through Tirso, we have boots on the ground, and our vast expertise in operating funds under the Portuguese Golden Visa means we are the best partner for anyone in Hong Kong.
Tirso: We are in a unique position as we can meet investors on the ground on a daily basis, which usually gives more comfort to someone who is investing in a foreign country. We understand what Hong Kong citizens and residents need and how that can align with what the Golden Visa offers.
It is rare to find an investment migration professional who understands both sides of the coin, but that is precisely what we offer.
To learn more about the Golden Visa, contact Optylon Krea today through their website.