To start with, it should not need the visa as justification for its existence may be the first hint. If it would not be an attractive option without it rather move on to another. Here are the views and some tips from respected names in real estate, residence and investment connected to Portugal.
Michael Maxwell (EQTY Capital): The strong messaging of ‘last call’ commonly seen does naturally create a sense of urgency, however investment fundamentals such as a strong team with track record, diversification and conservative realistic returns should always be considered. Gimmicks such as guaranteed returns or buybacks are often window dressing on a second-class investment. I would also be concerned if I was being pushed towards ‘internal’ legal counsel of the developer or seller. Your lawyer should always act for you and not be on the payroll of the party you are engaging with.
Ilana van Huyssteen-Meyer (Latitude): I will always look at the experience & skill set of the team combined with the transparent way in which they conduct business, I prefer tangible underlying assets such as prime real estate investments especially knowing the supply dynamics of Portugal. The right funds can be a credible, diversified alternative to direct real estate that my clients would be excited to invest in and justify the premium of a higher investment amount. I always start with this question – is this still a good investment, regardless of the golden visa carrot? Does this diversify my clients´ existing portfolio of assets?
Murat Coskun (Get Golden Visa): Those looking at a Golden Visa are usually in a privileged position and got there with strong business and investment savvy. An investment that offers residence or citizenship should importantly be judged by them like any other asset class. Naturally regulated options would provide a strong level of comfort but in a specific Portuguese Golden Visa context often the better fundamentals such as team, evidenced track record, enhanced diversification, and a realistic exit strategy. Should affordability allow then it would make sense to consider such an option as a priority.
Adrian Faccio (Henley & Partners): When looking at an ideal RBI asset, an investor should take into account how the investment sits within their wider investment portfolio. Generally speaking, options that lower risk and increase diversification are preferred. Rather than placing all one’s eggs in one basket, the ultimate objective from such an investment should be capital preservation, alongside complying with the legal requirements of the program and thus completing it successfully. In addition to that, accepting a lower return when compared to listed or private equity markets may indeed be preferable (and less risky), as the marginal cost would be the price of meeting one’s objectives - residency, or eventually citizenship, whichever the case may be.