For a decade, buying property was the default Golden Visa strategy. In 2025, that era is fading. Across Europe, regulated investment funds are overtaking traditional real estate routes as investors prioritise governance, diversification and long-term strategy over single-asset bets.
By Explorer Investments • Global Residency & Private Markets Insight
Old Core
Property
New Core
Funds
Focus
Governance
Investor
HNWI
“The Golden Visa decision used to start with “Which property should I buy?”. In 2025, serious investors start with “Which regulated fund fits my risk profile and residency goals?”.”
The early wave of Golden Visa programs was almost entirely real estate driven. Investors were encouraged to buy:
Over time, several issues emerged: inflated prices, concentration risk, opaque fee structures and increasing political pushback.
In parallel, some countries - notably Portugal - began to allow investors to qualify for residency through regulated investment funds. That option has now become the **core route for serious investors**.
Related reading: Portugal Golden Visa Funds 2025 - full comparison of fund strategies.
Neither property nor funds are “risk-free”. Instead, they expose investors to different types of risk.
| Dimension | Property-Based Route | Fund-Based Route |
|---|---|---|
| Concentration | Capital tied to one asset, in one building, in one city. | Spread across a portfolio of companies or projects. |
| Market Dependence | Sensitive to local property cycles and tourism flows. | Depends on underlying sectors (industry, healthcare, tech, etc.) and manager execution. |
| Operational Risk | Tenant risk, maintenance, local regulation, building management. | Operational work is done at fund and portfolio company level by professional teams. |
| Return Profile | Rent + potential appreciation, but often capped by local affordability. | Depends on strategy - can mix income, growth and value creation across multiple assets. |
For many high-net-worth investors, the key advantage of funds is not just return potential, but the ability to treat Golden Visa exposure as part of a coherent portfolio, not a one-off property decision.
As Golden Visa programs matured, regulators and policymakers increased scrutiny. Concerns included:
Fund-based models respond to these concerns by using established financial regulation frameworks. Regulated funds:
For global families who care about reputation, this matters at least as much as expected returns.
Many early Golden Visa investors assumed they could simply “sell the apartment” after a few years at a gain. Reality has been more mixed:
Fund-based routes do not offer daily liquidity either - they have their own lock-ups and fund lives - but:
There is still a place for property in a Golden Visa toolbox - for example, when a family genuinely wants a home in a specific city. But for many HNWI and family offices, funds are a better fit when:
Complementary article: Golden Visa via private equity - the institutional route preferred by high-net-worth families.
Most Golden Visa allocations are a relatively small slice of an investor’s net worth. That makes it even more important that the slice is structured properly.
Fund-based approaches allow investors to:
In other words, the Golden Visa becomes part of a coordinated wealth architecture, not an isolated purchase.
A private markets platform with experience in buying, building and exiting companies and projects is naturally aligned with fund-based Golden Visa structures. For investors, this means:
“For many global families, the Golden Visa is no longer about “where do we buy a flat?” - it is about “which manager do we trust to allocate capital in a regulated framework while we secure mobility for the next generation?”.”
Internal link: Investment migration reaches $30 billion - how tourism, culture and capital now move together.
Not always. If a family genuinely wants to live in a specific property, it can make sense to own it. But for pure residency and investment objectives, many investors prefer funds because of diversification, governance and alignment with their broader portfolio.
Yes, as a lifestyle choice or long-term holding. The key shift in 2025 is that property is no longer the main qualifying investment in jurisdictions like Portugal; regulated funds now play that role.
No. Capital is at risk, and returns are not guaranteed. The benefit of funds is structure and diversification, not certainty. Proper due diligence and advice are essential.
Critical. In fund-based Golden Visa strategies, you are mainly choosing the manager: their track record, governance, sector knowledge and alignment. The underlying assets will evolve over time, but the manager’s discipline remains central.
It depends on the fund’s structure, lock-up and secondary options. Early exit may be difficult or penalised. Investors should only commit capital they are comfortable locking in for the expected duration of both the fund and the residency plan.
Whether you are exploring the Portugal Golden Visa for EU residency or you simply want to allocate capital to private equity funds in Portugal, our Investor Relations team can help. We will walk you through CMVM-regulated fund options, clarify how they work for residency and for pure investment, and coordinate with trusted immigration and tax advisers. Schedule your confidential, no-obligation strategy call today.
André Bandeira
ab@explorerinvestments.com
Maria Campos Silva
mcs@explorerinvestments.com
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Get your complete, free guide to the Portuguese Golden Visa. Learn how to invest with confidence through Explorer Investments, the country's largest private equity fund.
André Bandeira
ab@explorerinvestments.comMaria Campos Silva
mcs@explorerinvestments.comCopyright © 2025 Explorer Investments
It is recommended to consult Chapter V of Decree-Law nº 162/2014, of October 31st, published in the Official Gazette, as well as its revision by Law nº 2/2020, of March 31st. The information included here is of a general nature, and therefore each potential investor should seek independent advice (e.g., legal, financial, tax, etc.)