How to Finance a Portuguese Golden Visa With Your IRA or 401K

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The Latitude Guide to How to Finance a Portuguese Golden Visa with Your IRA or 401K

Our Portuguese Golden Visa expert is Jon Green. “While there are a number of ways to qualify for a Portuguese Golden Visa via various Portuguese Residency by Investment options,” he reveals, “by far the one most favored by our clients is the €500,000 investment in a Portuguese venture capital fund.”

“What many people do not know is that you can use your IRA or 401k to exercise this investment option,” Green expands. “This is a tax-efficient method to not only receive Portuguese residency in exchange for your investment but potentially earn a return.”

“You can apply for a Portuguese Golden Visa whenever you like and reap the benefits that extend beyond being able to eventually land a powerful passport. What’s more, you’re not liable for financial or tax penalties for withdrawing your IRA or 401k which has grown in value in the meantime.”

Using Your IRA or 401k to Fund Your Investment in Portuguese Residency

How to finance a Portuguese Golden Visa? Chances are you haven’t considered using your IRA or 401k. Perhaps you’re thinking: I can’t withdraw from this before I turn 65 without incurring penalties.

You would be right in thinking that. You can’t withdraw capital from your IRA or 401k until you hit retirement age without incurring financial penalties and risking tax liabilities. But you can invest these savings by opening an LLC, say, in the USA well in advance of your golden years.

There is no stipulation that you have to invest in this way in the US. You can make a similar investment in a foreign country. Why not make that country Portugal? It has the added benefit of diversifying your IRA portfolio, by also opening a local Portuguese LLC, to outside the USA and you receive a golden visa which offers a valuable route to citizenship.

There’s a minimal physical residence requirement to become a Portuguese national. You need to spend 7 days a year in the country to maintain your residency rights. As Portugal is ideal for vacations thanks to its agreeable climate, beautiful beaches, and array of golf courses, that’s an easy condition to meet and after 5 years, you are eligible for a Portuguese citizenship and passport.

As a citizen of Portugal, you will have settlement rights in all of the European Union’s 27 member countries, providing access to healthcare and education opportunities.

The LLC option is not a hypothetical route to the Portuguese passport, the world’s 3rd strongest travel document. It’s a tried and trusted way to enjoy visa-free access to 179 international destinations. Prior to receiving this, you’ll be able to travel freely across the 29 countries that make up the Schengen area through your Portuguese residency.

Making Your Way to a Portuguese Golden Visa in 2024

If you want to finance a Portuguese Golden Visa with your IRA or 401k, there’s a logical next step to take well before you hit 60. You’ll need to get in touch with an experienced Residency by Investment firm such as Latitude Group. So, don’t delay and contact us today.