The proposed changes to the Portuguese Citizenship Act make open-end funds key for Golden Visa investors

The Portuguese government has proposed to increase the length of residence required to obtain citizenship from 5 to 10 years, which creates serious uncertainty for investors considering participating in the Golden Visa program. Although the changes are still under discussion and require parliamentary approval, it is already becoming clear: choosing the right investment instrument is more important than ever.

Due to the fact that parliamentary hearings are scheduled for September, it makes sense to have time to complete investments and apply for a Golden Visa before the possible entry into force of the law in order to preserve the current conditions and possibly fall under the "right of former use" (grandfathering).

Flexibility is a key advantage in the face of legal uncertainty

Open-ended funds provide investors with the necessary flexibility during legislative changes. Unlike closed-end funds, they allow to exit investments at any time without penalties and lengthy procedures, quickly adapting to new conditions.

The Portugal Golden Opportunities fund from Optimize Investment Partners demonstrates the advantages of this model:

• There is no blocking period
• Withdrawal of funds — within 5 business days
• There are no early repayment fees

This makes the fund especially valuable in the event of a change in immigration laws or the investor's personal circumstances.

Profitability without sacrificing flexibility

Flexibility does not interfere with results: since its foundation, the fund has shown a return of 13.1% (net, risk level 5). The fund's investment strategy focuses on Portuguese public companies, with a domestic market share of 80-100%. Among the key assets:

• EDP and Galp (energy)
• Mota-Engil (construction)
• Jerónimo Martins (retail)

Why do open-end funds outperform closed-end funds

In times of uncertainty, the fund's structure matters:

• Open—end funds are valued at daily net asset value (NAV), ensuring fair pricing.
• Closed—end funds - are traded on the stock exchange at a discount/premium to NAV, often up to 20% or more with market volatility.

If changes in legislation cause a mass exit of investors, owners of closed-end funds may lose a significant portion of their capital. Investors in open-ended funds simply withdraw funds at full cost, without trading on the secondary market.

In addition, open-end funds can accept new investors at any time, unlike closed-end funds, which are limited in volume and timing.

Protection for extended naturalization

If the period for obtaining citizenship increases to 10 years, open funds will continue to operate indefinitely. While closed-end funds are most often limited to a period of 7-8 years, which requires additional approval for an extension — without guarantees of success. This creates a risk that the investor will not have time to obtain citizenship before the end of the fund's term.

Regulatory stability

Immigration laws may change with elections, but financial regulation remains stable. The Fund is regulated by CMVM (Portugal's financial regulator) and meets strict reporting and transparency requirements.

The fund is traded on Euronext Lisbon, with daily valuation and data available through Bloomberg, Reuters, Morningstar and Financial Times.

Tax efficiency for investors from the USA

The Fund complies with the American requirements of FATCA and PFIC (QEF), simplifying reporting and minimizing tax difficulties.

Investors from the United States can use funds from independently managed IRA accounts, without having to create separate legal structures. This reduces administrative costs and facilitates participation in the Golden Visa program.

Access to the EU healthcare system

Portuguese residents get access to one of the best healthcare systems in Europe — Serviço Nacional de Saúde (SNS).

• A regular visit to the doctor is less than 10 euros
• Emergency care is mostly free
• There are no restrictions on age, illnesses, and insurance experience

With the European Health Insurance Card (EHIC), you receive medical care in all 27 EU countries, whether you are in Lisbon or on vacation in France.

For Americans, especially retirees, this is a significant advantage over the US healthcare system.

The best solution for an unstable environment

Although legislative changes are still being discussed, the government is also considering measures to improve the conditions of the Golden Visa, including tax benefits.

Therefore, smart investors are already acting, capturing current advantages and maintaining flexibility for future changes.

• The minimum threshold for participation through an investment fund — €500,000 — remains in place.
• In 2023, Portugal has already abolished Golden visas through real estate, showing how quickly profitable options can disappear.

The Portugal Golden Opportunities fund combines profitability, stability and flexible exit, making it the optimal solution for those who want to adapt to changes in Portuguese immigration policy.