Why American Investors Are Choosing Portugal’s Fund-Based Golden Visa Over Caribbean Passports

A New Mobility Shift for U.S. Investors

Over the last decade, the global investment migration market has expanded beyond traditional regions. One of the most important new segments is U.S. high-net-worth investors looking for:

• geopolitical and jurisdictional diversification beyond the United States;
• optional residency for children and future generations;
• access to European healthcare and education systems;
• an alternative base in case of political, social or economic shocks.

As this market matures, the conversation has moved away from “which passport gives me the most visa-free countries” to “which jurisdiction offers the best long-term base for my family and capital”.

EU Residency vs Caribbean Passports - Different Outcomes

Caribbean citizenship programs offer a clear value proposition: relatively fast processing, visa-free access to a long list of countries, and a light physical footprint.

But for American investors, the real question is:

““Do we want another travel document - or do we want a long-term base in Europe with rights, institutions and a path to EU citizenship?””

Portugal offers a residence permit in an EU country where families can:

• live, study and access local services if they choose to;
• travel freely across the Schengen Area;
• apply for Portuguese citizenship after a number of years, subject to meeting requirements;
• integrate into a mature legal and institutional framework.

Related reading: Best residency and Golden Visa programs in 2025 - global ranking.

Why U.S. HNWI Prefer Fund-Based Structures Over Property Schemes

Most American HNWI are deeply familiar with fund-based investing - from mutual funds and ETFs to private equity and venture capital. They work with:

• advisors and CIOs;
• asset allocation policies;
• alternatives sleeves in their portfolios;
• institutional-grade reporting and governance.

Portugal’s modern Golden Visa model aligns perfectly with this mindset. Instead of buying a single apartment in a city they barely know, U.S. investors can:

• allocate €500,000 into a CMVM-regulated investment fund;
• gain exposure to a portfolio of underlying assets- often private equity-style deals, infrastructure, innovation or tourism projects;
• rely on a regulated manager, custodian and audited accounts.

Caribbean programs, by contrast, remain largely donation or property-fee based - with no meaningful fund or portfolio exposure at all.

Internal link: Golden Visa via private equity - the institutional route preferred by high-net-worth families.

U.S. Tax Reality: Why Caribbean Citizenship Doesn’t Fix It

One of the biggest misconceptions in the market is that a Caribbean passport will somehow solve U.S. tax challenges.

For U.S. citizens, the reality is simple: the United States taxes on citizenship, not residency. Whether a U.S. citizen also holds a Caribbean passport or not, they still:

• file annual returns with the IRS;
• report worldwide income;
• fall under FATCA and global reporting rules.

Portugal's Golden Visa does not automatically change tax status either - but it allows investors to:

• keep their primary tax residency in the U.S. if they wish;
• progressively build a European alternative for a future life stage, without immediate disruption.

Compliance & Geopolitics - Pressure on Caribbean Programs

Caribbean citizenship programs have come under increasing scrutiny from:

• the European Union;
• the United Kingdom;
• the OECD and other multilateral bodies.

Concerns range from due-diligence quality and source-of-funds controls to broader security and geopolitical considerations. This has led to:

• periodic tightening of visa access to Schengen;
• higher demands for program transparency;
• risk perceptions that sophisticated investors and their advisors cannot ignore.

By contrast, Portugal's Golden Visa is anchored in the EU legal framework, supervised by national regulators and aligned with European AML and KYC standards. For U.S. investors and their advisors, that institutional comfort matters greatly.

Portugal’s Fund-Based Golden Visa - Built for Institutions

Portugal's modern Golden Visa is centred on investment funds that:

• are supervised by the CMVM (Portuguese securities regulator);
• are typically audited and have independent custodians;
• invest in real-economy assets - from real estate platforms and tourism to innovation, R&D and infrastructure;
• meet the minimum investment threshold (commonly €500,000) for Golden Visa eligibility.

For U.S. wealth managers and family offices, this structure is recognisable. It allows them to:

• treat the Golden Visa allocation as a small, defined alternative sleeve;
• evaluate managers on track record and governance;
• integrate the position into existing reporting and oversight.

Internal link: Full guide to Portugal’s Golden Visa via private equity funds.

The Explorer Role - Private Equity Platform for U.S. Investors

Explorer operates as a Portuguese private equity and alternative asset manager with more than €1.8 billion in assets under management - including:

• Golden Visa-eligible funds;
• SIFIDE R&D-focused funds for corporate investors;
• sector-specific private equity strategies.

For U.S. investors, the combination is compelling:

• Golden Visa exposure through regulated fund units;
• capital deployed into real-economy projects rather than a single property;
• alignment with institutional standards in risk, reporting and governance.

“For many American families, the decision is not “Caribbean versus Portugal”. It is: do we want an extra passport for travel - or a regulated, EU-based structure that can support our family for the next generation?”

Internal link: Learn more about Explorer Investments and our private equity expertise.

FAQs - U.S. Investors, Portugal and Caribbean Alternatives