3 Critical Pitfalls When Choosing a Portugal Golden Visa Fund (2026)

Explorer Investments
Mon, 27 Oct 2025 08:00:00 GMT
Golden Visa, Portugal, Investment Funds, Due Diligence, Red Flags, Pitfalls, CMVM, PFIC

Investing €500k in a Golden Visa fund? Avoid these 3 critical red flags. A guide on manager reputation (CMVM), hidden fees, and US tax compliance (PFIC).

With real estate gone, Portugal's Golden Visa fund market is booming. But not all funds are created equal. Choosing the wrong €500,000 fund can be a costly mistake.

Key Pitfalls to Avoid:

Pitfall 1: Unproven Managers: Watch for managers with no track record or CMVM regulation, and strategies that look like "disguised real estate."

Pitfall 2: Hidden Fees: High setup/subscription fees (>5%) can destroy your initial capital. Demand a transparent fee schedule.

Pitfall 3: US Tax (PFIC) Non-Compliance: If you are a US investor, the fund *must* provide annual PFIC Statements for the QEF election to avoid punitive taxes.

Your choice should be based on a proven track record, fee transparency, and robust tax compliance. Explorer Investments provides all three.

Read the full guide on fund pitfalls here.