By Michael Wolf
Chinese mainland's immigration history has more than 30 years, in the past time, the Chinese mainland has been the world's largest immigration exporter, currently all the popular in the market immigration projects in China, many projects, Portugal golden residence visa 5.6 billion euros worldwide, and contributed 5.6 billion euros is Chinese mainland once promote Portuguese gold visa nearly 300 channel institutions, the gold residence became the highest investment immigration project after EB5.
In 2020, a COVID-19 outbreak completely disrupted the entire investment immigration industry ecosystem. Most CBI/RBI projects have substantial market share,
Despite security issues and travel restrictions, the so-called "golden visa" market remained booming during the Covid-19 pandemic, with high net worth global buyers eagerly seeking property investment targets and financial havens.
"Customers began to focus on Europe, in particular for Portuguese Golden Residence cards," said Michael Wolf, a Senior European project expert. "In the pandemic, customers have realized that [gaining citizenship under-investment regulations] have an advantage against geopolitical risks and fluctuations. They want to invest instability, they want their children's future choice"
As the global economy continues to be affected by the pandemic, some governments have expanded visas over the past year to cover tax losses, a phenomenon also emerged after the 2008 financial crisis.
Since 2012, Portugal has been one of the most popular and well-known Golden Visa programs designed to attract investment and taxes for the struggling markets of Lisbon and small cities. The policy was an overwhelming success.
But the plan could be too effective in pushing up prices and demand, and in early 2020 the Portuguese government suggested that no longer gold visas should be offered to investors bought in Lisbon and Porto. The move aims to curb speculation, keep prices in major cities available, and encourage investment in low-density areas of the country.
In response to the pending restrictions, Chinese investors flock into the Lisbon market every year to ensure investment while receiving civic welfare. After eight years of continuous purchase, buyers from China become the largest source of purchase, but also lead to Lisbon, Porto, Cascais, and other big cities almost no room to sell, housing exhausted, all over the world, especially from the Asia Pacific region urgent need of a more flexible, simpler process of investment way to obtain gold residence card, - - -investment fund becomes the first choice.
At the beginning of next year, the fund immigrants will be adjusted to 500,000 euros. Because of its simplicity and convenience, the investment fund immigrants will become the most attractive of the eight gold visa categories in Portugal, and the duration will be the longest category.
The Portuguese government has two main objectives in enabling the investment fund approach in the Golden Visa Program. These are all these:
Attracting international capital into tangible assets, companies, and stock markets through various funds,
Encourage the establishment of new funds, especially in the strategic sector, to stimulate the Portuguese economy.
What kind of funds can help you get a golden residence card?
1 Portfolio must be diversified and any investment in a single company, asset, equity shall not exceed 30% of the portfolio
2 The fund does not guarantee stable dividends, like Treasury bonds.
What are the types of investment funds in Portugal?
There are many different types of investment funds available to choose from that are eligible for a gold visa. These types include:
Real estate fund; mainly invest in real estate
Securities funds; mainly investing in stocks
Venture capital funds; mainly focused mainly on startups and other companies
The risk levels and strategies of the various funds vary greatly.
The crown capital fund initiated by YKcrown is an industrial fund, whose main investment matter is real property and precious metals. The investment redemption period is far shorter than the securities funds and venture capital funds.
Advantage of funds over real estate
The lower investment scale was EUR 350,000 as compared to EUR 500,000 property
Diversifying the investment, instead of buying one or two properties
Possible tax incentives
You may not need to pay any taxes on the proceeds of your funds in Portugal
There was no withholding tax
Property rental income is taxed at a uniform rate of 28%
Low acquisition costs; only transaction fees
And property acquisitions are accompanied by a high IMT tax and stamp duty
Investment is managed by professional managers
How to choose an investment fund
If you are not a professional investor or a financial working person, you may find yourself feeling confused when investing in a fund.
The risk fund does not guarantee the preservation of the vested capital. Therefore, some risk funds are "small in risk", while others are "high in risk".
So, the first thing to do is; you may prefer different types of funds, depending on your interests as an investor.
If you are the kind of risk investor who likes it, there are some funds focused on start-ups or companies in certain areas. If all goes well, the value of the portfolio companies in which these funds invest may soar. However, there are also very viable risks that they may find that the investment fails and lose the investment principal completely
Many funds are asset-supported, which means that while they are not formal property funds, they are funds mainly investing in property, albeit indirectly. In the final analysis, you know that real estate will maintain some value, whatever the market changes.
That's why I found these more suitable for conservative investors looking to hold their investment value than high risk, high returns in the game.
Analyze the funds and raise the questions
As noted above, different funds have different strategies for configuring cash and creating portfolios.
Some will focus on real estate, others will focus on start-ups, commodities, etc.
Make sure to meet with the Fund Manager and ask all the questions you may encounter. Technically, you can contact the funds and set them up by yourself. However, it is highly recommended for you to use a professional consultant. This is a major investment and the right professionals will play an important role in guiding you, saving time, money, and headaches.
The basic question for the fund manager is:
What areas will the fund focus on?
If real estate: what region or asset category?
If the company: what industry or investment stage?
How will the fund ensure diversification?
What is the target return?
Are the foundation dividends? How long, based on what?
What is the expected yield at maturity?
How much money does the fund try to raise?
How many of them have been submitted?
Where do existing investors come from and how are they doing?
What fees will the fund investment involve?
What is the one-time subscription fee?
What is the annual management fee?
How much performance fee will the fund manager receive at maturity? Are there any obstacles?
Who is the fund auditor?
Fully estimates of possible black holes
Insufficient funds … Funds:
Funds where minimum committed capital have been raised to advance investment
Both a fund management company and a real estate developer.
Fund managers will "manage" the fund. But, this is technical management. In many cases, you will find that there is another company or team behind the fund.
In these cases, make sure to review the company behind the team or the team. Note any conflict of interest that may exist.
A common danger signal is that if the company is a real estate development company that sells its own development to the fund. This means that they may earn income when they sell their development projects to a pool of funds raised by subscribers like you. Any additional potential profit due on the fund is a plus for them, but don't expect them to be motivated to make extra efforts.
There are exceptions, but be very careful.
What should be considered when seeking investment funds for the PT Golden Visa?
When deciding on investment funds for the Portuguese Golden visa, it is crucial to weigh any relevant risks. Therefore, the following points should be noted when investing:
Qualification, leverage, liquidity, and legal documents of the Fund Manager;
Some funds may have lower financial return opportunities, but have safer risk tolerance;
Investment funds can withdraw early, but investors should usually expect to make all the profits after 5-10 years;
Industry exposure and diversified portfolios will determine the risk-return status of funds of this nature;
Unlike real estate investments, you are not the sole decision-maker for the Fund; you need to understand if the Fund has any potential expansion periods and when the fund manager can extend its duration.
YK CROWN Portugal Company profile
YK CROWN is headquartered in Luxembourg and has established branches in Portugal, Greece, and Turkey. Overseas companies have both qualified property development and property sales. It is a European localized real estate development and sales company, providing high-quality property immigration services for many international clients. Among them, Portugal YK CROWN Co., LTD., founded in 2016, is located in Lisbon, the capital of Portugal. We use the advantage of localization in Portugal and the understanding of the Portuguese real estate market and immigration policy, we provide comprehensive and detailed services for the needs of different international customers: assist customers to Portugal for investigation, investment, and property. Customers in Portugal can truly feel the strength of our service team.
YK CROWN Portugal is to make global investment and willing to obtain EU long-term residence international customers, we provide Portuguese investment value of the real estate and fund projects, to meet the different needs of customers, real estate types including land, apartments, townhouses, single-family villas, office buildings, shops and wineries and other kinds of properties. The main investment direction of the fund we established is also real estate projects with low risk and stable returns. After years of development, YK CROWN now has a strong team of local professional immigration consultants, real estate sales, lawyers, copywriting, and after-sales service personnel tailored reasonable investment projects to customer needs, and provide complete and detailed follow-up services after investment.
At present, YK CROWN has maintained good relations with relevant European government departments and cooperative agencies in the industry and has formed a good reputation and influence in the industry.
Crown capital Fund Benefits:
The full Act supports
Act 102, which came into effect on 26 November 2017, it allows non-EU national citizens to obtain a Portuguese "gold visa" through capital transfer investment.
The establishment of the Portuguese fund is subject to the approval of the CMVM, and the subsequent investment operation will be continuously supervised, while the fund security of the fund investors in the custody bank is supervised and supervised by the Portuguese Central Bank and the EU Central Bank respectively.
Moreover, the National Financial Regulatory Commission (CNSF) is used to coordinate the aforementioned regulators, improve regulatory efficiency, and better protect investors.
The two central tasks of the Portuguese Central Bank (BDP) are to maintain stability in the national prices and financial system. As a national regulatory body, BDP is part of the euro system and the European central banking system, a unified regulatory mechanism and a unified solution mechanism. Mainly oversees credit institutions, financial companies, payment institutions, and electronic currency institutions to ensure the safety of institutional custody funds (such as custody banks of FCR funds), develop preventive mechanisms and sanctions against various kinds of illegal operations. Under the unified regulatory mechanism, credit institutions, financial institutions, payment institutions, and electronic monetary institutions.
The main function of the Portuguese CSRC (CMVM) is to protect investors and ensure the improvement and development of the financial markets.
Excellent fund management agency
—— insula capital, a multinational investment management company with a stable risk control strategy and a sound investment and research system, is qualified and holds an EU public and private practice license. It opened on 30 July 1987 and was regulated by the Portuguese Securities and Exchange Commission (CMVM). Since the restructuring of Insula Capital in 2019, it has more highlighted the advantages of real estate funds. In just two years, Insula Capital has managed assets that have reached 600 million euros, allocated among seven funds.
Other investment methods are non-standardized products, the risk of the investment process affects the identity processing, and the efficiency of the fund investment in obtaining the identity is high, the Immigration Bureau approves the fund qualification, the subscription process is fast, not affected by the investment progress of a single project.
Scale effects disperse the risk
In other investment methods, the investment risks of a single project or asset investment are too concentrated to flexibly adjust the investment strategy according to the market changes. The fund is an investment method with the advantage of scale effect. The scale of the fund brings a stable brand effect, and the scale means risk diversification.
We are mature property projects, not development projects
Development projects will have longer periods of revenue growth and unpredictable development stage risks. The mature property invested by the Crown Capital Fund produces deterministic returns and mature operating cash flow returns, reflecting the increase in cash returns from local inflation levels leading to growth in asset valuation.
Exit is even more secure
Focus on investing in cash flow assets, increase financial risk without increasing leverage, and realize the investment cycle of cash, real estate, and cash.
If you want more information about YKcrown, crown capital, please contact Michael Wolf at dan_1 @sapo.pt directly