Portugal Golden Visa – Your Pathway to European Residency
Table of Contents
Portugal’s Golden Visa (ARI) remains one of the world’s most flexible residency-by-investment pathways in 2026. With a ~5-year timeline to citizenship, ~7 days/year average stay requirement, and Schengen mobility, it gives international families a credible plan for EU access — without relocating full-time.
Fast take
Post-2023 reforms removed property purchases and large capital deposits. The Golden Visa is still active and focuses on qualifying funds, job creation, research, and cultural contribution. For most investors, the €500,000 fund route (managed by licensed professionals) is the simplest, most compliant path — which is exactly where Mercan specializes.
European Residency
Access to live, work and study in Portugal after receiving residency cards, with visa-free travel across the Schengen Zone, enhancing your mobility and business flexibility.
Family Privileges
Extend residency benefits to your entire family: include spouse, children, and dependent parents under the same application, allowing them to enjoy the same high quality of life across Europe.
Tax Optimization
Leverage Portugal’s unique tax benefits, including reduced rates and exemptions, which can significantly increase your investment returns. No taxation on foreign income unless you become a tax resident.
Citizenship Pathway
After 5 years of residency, with just 7 days of annual stay in the country, you are eligible to apply for Portuguese citizenship, opening up the opportunity to live and work anywhere within the EU.
Investment Security
Invest confidently in Portugal with its stable economy and strong legal protections, complemented by Mercan’s established track record and a guaranteed buyback option for added security.
Cultural Enrichment
Immerse yourself in Portugal’s rich cultural heritage and vibrant lifestyle, from its historic cities to stunning landscapes, while benefiting from the stability and security of an EU nation.
Why Portugal Golden Visa Program Still Leads in 2026
- Residency now, EU citizenship later: Obtain a renewable residence permit and, after about five years of legal residency and basic A2 Portuguese, apply for citizenship. Dual nationality is allowed.
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Minimal presence: Comply with about 7 days/year on average (e.g., 14 days per two-year period). You can keep your life, career, and tax residency elsewhere if you wish.
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Whole-family coverage: Include spouse/partner, dependent children (including university students), and dependent parents under one application.
- Schengen mobility & quality of life: Live/work/study in Portugal and move freely across the Schengen Area — in one of Europe’s safest, most affordable, and most welcoming countries.
- Tax flexibility: Simply holding a Golden Visa does not make you Portuguese tax resident. If you don’t pass 183 days/year in Portugal, you typically don’t owe Portuguese tax on non-Portuguese income. (Always get personal advice if/when you choose to move.)
2023–2026 Updates: What Changed — and What Didn’t
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What ended: New Golden Visa applications can no longer qualify via residential real estate or the €1.5M capital transfer route. Funds that primarily invest in real estate are out of scope. -
What remains: The program continues with refined routes — qualifying funds, job creation/business, research, and cultural contributions — each held for ~5 years. -
Timing upgrade: Time spent in processing can count toward the five-year eligibility for citizenship, helping offset administrative queues as AIMA (which replaced SEF) scales digital processing.
about Mercan Group
We have assisted over 50,000 immigrants to Canada from various origins and recruited more than 20,000 foreign workers to Canada, the USA, the Middle East, Malaysia, and the Caribbean. Additionally, we have raised over $2 billion in foreign investment for immigration programs in Canada, Portugal, Greece and the USA.
Why Many Investors Now Choose a Qualifying Fund — and How Mercan Stands Out
With property off the table, the €500,000 fund route has become the default for investors who want a passive, manager-led, and rule-compliant path. Qualifying funds are CMVM-regulated and focus on operating companies (not property ownership), aligning squarely with post-2023 rules.
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€500,000 minimum for Golden Visa eligibility (the fund may accept smaller subscriptions, but €500k is required to qualify for GV).
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CMVM-registered closed-end venture capital fund, ~€140M target size.
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Strategy: equity in hotel operating companies (not direct property), ensuring GV compliance while leveraging Mercan’s hospitality track record.
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6-year holding period coordinated with the GV journey.
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Guaranteed Buyback in Year 6: investors may redeem and receive 100% of the €500k principal.
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Fixed 2% annual yield paid yearly after Year 1.
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No annual management or performance fees charged to investors.
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Portfolio/partners: upscale hotels (e.g., Algarve and Porto projects) operated by Ace Hospitality with major international brands.
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Shariah-compliant share classes (A1/A2 models) are available for eligible investors.
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Mercan provides end-to-end handling (banking, legal filing, biometrics scheduling, renewals, and exit coordination).
Why this matters for searchers (PAA intent): CMVM regulation, buyback clarity, holding period, whether the visa is “suspended,” who’s eligible, and how fast citizenship can be attained are the top questions in “People Also Ask.” Mercan’s structure directly addresses those concerns.
Eligibility & Requirements (Who Can Apply)
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Non-EU/EEA/Swiss citizens, 18+, with a clean criminal record.
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Commit to a qualifying investment and maintain it for ~5 years.
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Meet the minimal stay requirement (about 7 days/year on average).
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Obtain a Portuguese NIF and bank account to fund the investment (Mercan’s legal team arranges these, often remotely).
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Include eligible dependents: spouse/partner, unmarried dependent children (including students), and dependent parents.
There’s no language requirement for residency. The A2 Portuguese requirement applies later when you apply for citizenship.
Portugal Golden Visa Application Process — Mercan-Only Fund Route (Step-by-Step)
1) Strategy & Onboarding
We map your goals, family composition, and timelines. Then we open your NIF and Portuguese bank account (often via power of attorney), complete KYC/AML, and set your filing calendar.2) Document Preparation
You receive a lawyer-curated checklist. We coordinate translations, certifications, and apostilles — and pre-validate everything against AIMA’s ARI portal requirements to avoid rework.3) Subscribe to Mercan’s Fund
Review and sign the subscription pack and transfer €500,000 to the fund’s designated account/escrow. We issue subscription proof for the application.
Note: The fund may accept smaller subscriptions, but €500k is required to qualify for the Golden Visa.4) AIMA Online Filing
Mercan files your ARI application, uploads all documents, and handles the application processing payment to lock your place in line.5) Pre-Approval & Biometrics Scheduling
We monitor your file and, upon pre-approval, secure your biometrics appointment (Lisbon, Porto, or other AIMA offices), advising on the fastest available slot.6) Biometrics in Portugal
Attend your appointment (we prep you in detail). Officials capture fingerprints and photos and verify original documents. We handle any follow-ups via the portal.7) Final Approval & Residence Cards
After final approval, we guide residence-card issuance payments and logistics so your biometric ID cards are produced and delivered as smoothly as possible.8) Maintain & Renew
We calendar renewals (longer-validity cards reduce bureaucracy), track your minimum-stay evidence, and keep your fund holding and compliance in place through year five. Remember: processing time counts toward the five-year clock.9) Citizenship or PR (~Year 5)
When eligible, we coordinate with specialist counsel on your citizenship (A2 language) or permanent residence application. Your fund exit is coordinated under the Guaranteed Buyback (Year 6).
We do not place investors into third-party funds or alternative GV routes. Our workflow is designed exclusively around Mercan’s CMVM-regulated fund so you have a single, accountable partner from start to finish.
Spotlight: Mercan Group’s Hospitality Fund (Structure, Portfolio & Benefits)
One of the standout Golden Visa funds in 2026 is the Mercan Group’s private equity hospitality fund, which focuses on high-end hotel projects in Portugal. Mercan Group – a Canadian-founded investment immigration firm – is a veteran in Portugal’s Golden Visa scene, with an extensive track record of developing hotels that qualified for the visa program. With the 2023 shift toward funds over real estate, Mercan’s Golden Visa-eligible fund has emerged as a premier option for investors seeking a secure, turnkey investment. Here we break down the key features of Mercan’s fund:
● Minimum Investment: €500,000 (for Golden Visa investors). This is the standard amount required by law for the fund route. (Mercan’s fund does accept smaller subscriptions down to €250K but €500K is required to obtain the visa).
● Fund Structure & Regulation: Target size of €140 million, structured as a CMVM-regulated closed-end venture capital fund focused on Portugal’s hospitality sector. Importantly, the fund invests in corporate equity (hotel operating companies) rather than directly in real estate – ensuring full compliance with Golden Visa rules.
● Fund Duration & Exit: 6-year minimum holding period. This aligns perfectly with the Golden Visa timeline (5 years to citizenship eligibility). Mercan offers a Guaranteed Buyback at the end of Year 6: investors can redeem their units and have 100% of the €500,000 capital returned. In practice, once you’ve completed the Golden Visa’s 5-year requirement (and obtained citizenship or permanent residency), Mercan will buy back your fund shares in year 6, returning your full principal. This capital protection via guaranteed exit is a rare feature among Golden Visa investments it essentially locks in your outcome upfront, greatly appealing to risk-conscious investors.
● Fixed Annual Returns: The Mercan fund pays out a fixed 2% annual yield on the invested capital (i.e. €10,000 per year on €500K). These interest payments are distributed yearly (after the first year) as income to investors. Notably, the returns are **paid regardless of the hotels’ performance, since Mercan effectively pre-commits to this coupon. This turns the investment into a steady income generator throughout the holding period – combining the stability of a bond (regular fixed interest) with the upside of real estate (the eventual sale of the asset). Few other Golden Visa funds offer fixed returns (most only pay if/when projects profit), so Mercan’s model is distinctive. Moreover, Mercan even offers bonus yields: investors who stay beyond the 6-year term can earn an additional +2% in later years (e.g. years 8, 10, 12), incentivizing longer-term partnership.
● Zero Fees: In another highly unusual move, Mercan’s fund charges no annual management fees or performance fees to investors. The typical fund in this space might charge ~1-2% management fee plus take 20% of any profits, which can erode returns. Mercan waives these fees – the full 2% yield goes to the investor untouched. Mercan instead earns its profit from the development projects themselves (developer margins, hotel operating revenue) rather than by “skimming” fees from investors. This alignment means what’s promised is what you get: if Mercan commits to 2% yearly, you receive that without hidden deductions. It’s a win-win alignment – Mercan succeeds when the hotels succeed, and investors aren’t nickel-and-dimed along the way.
● Tax Efficiency: Because the fund is structured under Portugal’s venture capital regime, distributions are typically tax-free in Portugal for non-residents. If you keep your tax residency abroad (which most Golden Visa investors do), your 2% annual interest is paid with no Portuguese withholding tax. In other words, you can keep the full amount of the yield. This, combined with no fund fees and the principal guarantee, means the effective cost of the investment is very low – you’re essentially earning a modest return in exchange for obtaining residency. (U.S. investors also have the option of using certain retirement accounts like IRA/401k to invest, making it even more tax-efficient, though this is a U.S.-specific benefit.)
● Hotel Project Portfolio: Unlike some funds that invest in abstract assets, Mercan’s fund directly funds tangible, high-end hotel developments – each associated with well-known international hospitality brands. As of 2026, the fund’s portfolio includes three flagship projects in prime locations:
PONTE DO VAU BEACH RESORT PORTIMÃO – PHASE 3
Hard Rock Hotel Algarve is a 5-star beachfront hotel in Portimão, Algarve, branded by Hard Rock International. As the first Hard Rock Hotel in Portugal, it occupies a prime oceanfront location at Praia do Vau. The hotel will offer 275 luxury rooms, 150 branded apartments, multiple swimming pools, signature restaurants, a Rock® Spa, and an exclusive beach club. Construction began in 2024 and is on schedule for completion, positioning the property as a premier destination for luxury hospitality on Portugal’s southern coast.
ALVOR BEACH RESORT
Hilton Alvor Hotel offers a timeless and refined hospitality experience, nestled amidst beautifully landscaped gardens and unspoiled natural surroundings. This five-star retreat presents a stunning panoramic view that stretches across a 50-meter-long swimming pool, lush tropical gardens, and serene pine trees, ultimately meeting the shimmering line of the Atlantic Ocean on the horizon. Phased development is underway, and the upcoming expansion will add 82 new rooms to the existing 281, enhancing the hotel’s capacity and appeal. Guests will also enjoy a new regional restaurant, a luxurious spa, a fully equipped gym, a vibrant kids’ club, a Padel tennis court, a mini golf course, and an extraordinary rooftop terrace, perfect for soaking in Algarve’s golden sunsets and tranquil ocean breezes.
BRIDGEVIEW GAIA HOTEL
Bridgeview Hotel Gaia (Porto) is a 4-star hotel development in Vila Nova de Gaia, part of the Porto metropolitan area, just across the river from Porto’s historic center. This modern lifestyle hotel offers panoramic views of the Douro River and Porto skyline, blending historic charm with contemporary design. It is partnering with Accor Hotels under the Tribe segment, marking the launch of the first Tribe hotel in the Iberian Peninsula.
This distinctive hotel project strengthens the fund’s portfolio with strategic geographic diversification in Portugal’s second-largest city economy. With Porto’s tourism booming and Vila Nova de Gaia becoming a vibrant extension of the city—famous for port wine cellars, cultural attractions, and riverfront experiences—the Bridgeview Gaia Hotel is positioned to meet high demand from leisure and business travelers seeking modern accommodations in Porto.
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Download our Free Guide or Schedule a Consultation with our experts to start your journey toward European residency today. Explore our investment options and exclusive benefits.
What is a Private Equity Fund?
A Private Equity Investment Fund in Portugal is a specialized investment vehicle that pools capital from investors to acquire and manage private companies, aiming for profitable exits. The investment strategy of Mercan Funds focuses on the hospitality sector in Portugal, investing in high-growth companies with strong potential for profitability. The fund provides a diversified investment opportunity, aligning with the Portuguese Golden Visa program, with a minimum investment of €500,000, offering both residency and financial returns.
Unlike traditional real estate investments, Mercan Funds operate as venture capital/private equity investments, ensuring compliance with Golden Visa regulations. Investors benefit from Mercan’s proven track record and a guaranteed buyback option after six years, providing a clear exit strategy and financial security.
Taxes (High-Level)
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Golden Visa ≠ Tax Residency: If you don’t spend 183+ days/year in Portugal, you’re typically not tax resident there and don’t owe Portuguese tax on non-Portuguese income.
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Fund Income: For non-residents, income from the fund is generally tax-efficient under current frameworks.
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If/when you move: If you choose to relocate full-time, consult a cross-border advisor early. We’ll introduce you to professionals who regularly support Mercan investors.
From Residence to Passport: The Five-Year Journey
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Years 1–5: Maintain your residence, hold your fund units, and meet minimal stay (about 7 days/year on average). Time in processing counts toward the five years.
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Year ~5: Apply for Permanent Residence or Citizenship. For citizenship, pass the A2 language exam and provide a clean criminal record and standard documentation.
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Exit: Coordinate the Guaranteed Buyback (Year 6) once you’ve secured PR or citizenship, and redeem your €500,000 principal under the fund’s terms.
The outcome is powerful: as a Portuguese (EU) citizen, you have the right to live and work anywhere in the EU, plus expanded global mobility.
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Frequently asked questions
CMVM is the Portuguese Securities Market Commission, and its role is to supervise and regulate the financial instruments markets, as well as the agents that operate in them, promoting the protection of investors.
- Yes, you can include a spouse,
- Children under the age of 18.
- Financially dependent 18+ children can also be included if they are full-time students and not married.
- Dependent parents can also be included.
Yes, couples who are together by civil partnership/domestic partnership (in Portuguese União de Facto) are entitled to the Golden Visa the same way a married couple is.
The only difference is that it is necessary to prove that the union has started at least 2 years prior to the date of the application.
For the residency application, a language test is not required. It is only required when applying for citizenship or PR which will be 5-6 years after receiving residency cards.
Yes, Mercan Private Equity Fund I is compliant with Shariah Law. According to the Islamic Finance Advisory Board, the Class A1 shares are based on the Sukuk al-Ijarah model, which provides a fixed return on a limited investment. As for Class A2 shares, they are based on the Musharakah model, with profit/loss sharing after the completion of five years of the project. The Shariah Certification assessment guarantees that every aspect of MPEF I aligns with Islamic finance principles.
No. The program remains active in 2025. Portugal removed real estate and certain routes in 2023; qualifying funds and other refined options continue.
€500,000 is the legal minimum for the fund route. (Mercan’s fund may accept smaller subscriptions, but €500k is required to qualify for GV.)
Timelines vary with AIMA’s load. Many applicants plan for ~12–24 months from filing to residence cards. The processing period counts toward the five-year eligibility.
Non-EU/EEA/Swiss adults (18+), clean criminal record, and a qualifying investment maintained for ~5 years. Include spouse/partner, dependent children, and dependent parents.
No. Expect ~7 days/year on average (e.g., 14 days per two-year period).
Yes. Portugal permits dual nationality. You can keep your original citizenship while becoming Portuguese.
For many investors, Portugal is more flexible: ~5 years to citizenship with minimal stay and dual nationality permitted. Spain generally requires longer physical residency and has different nationality rules.
Yes. Foreigners can freely buy property. But buying real estate no longer qualifies for the Golden Visa. Many GV investors still buy a home for personal use in addition to the qualifying fund.
Owning a home doesn’t itself grant residency. If residency is the goal, use a qualifying GV route (e.g., fund) or another residence visa (e.g., D7, digital-nomad, etc.).
Residents access the public SNS system at very low cost. Golden Visa holders can register after receiving their residence card. Many also carry private insurance for speed and choice.
The process is the same as for other nationalities and is straightforward with legal support. Many Americans choose the fund route for simplicity and tax flexibility.
Capital is committed for ~5–6 years; administrative timelines can be lengthy; program rules can evolve. Mercan mitigates investment uncertainty with buyback clarity, fixed yield, and CMVM oversight, and we manage the immigration side end-to-end.
As a resident, you’re no longer a Schengen “tourist.” Your residence card lets you live in Portugal year-round and travel within Schengen more freely than a visitor.
You risk non-renewal if you don’t maintain the investment, meet the minimum stay, or if serious legal issues arise. Mercan’s calendarized support helps you stay compliant.
Yes. Shariah-compliant share classes (A1/A2) are available for eligible investors.
Per terms, the Guaranteed Buyback in Year 6 allows eligible investors to redeem and receive 100% of the €500k principal, typically after you’ve completed citizenship/PR formalities.
Introduction
The aim of this material is to provide information of some characteristics of MERCAN PRIVATE EQUITY FUND I – FUNDO DE CAPITAL DE RISCO FECHADO (the “Fund”) and is not an offering document for any securities or financial product or a solicitation of any offer to sell any security or financial product or to participate in any trading strategy. This material is intended for your analyses and your preliminary interest in receiving further documents.
Decision to Invest
Any decision to invest in the Fund should be made after reviewing the further Fund documents, which would contain material information not contained herein and which would supersede this information in its entirety, conducting such investigations as the investor deems necessary and consulting the investor’s own legal, accounting, and tax advisors in order to make an independent determination of the suitability and consequences of an investment in the Fund.
No Investment Advice
MERCAN does not provide investment advice of any kind and the decision to request further detailed information about the Fund is a judgement of the investor.
Confidentiality
The information contained herein is confidential information and any unauthorized change, disclosure, reproduction, or sharing of this document is expressly prohibited, and also its disclosure can be restricted by law in certain jurisdictions. The recipient agrees that it will, and it will cause any of its directors, partners, officers, employees, and representatives to use such information only to evaluate its potential interest in the Fund and for no other purpose.
Suitability and Risks
Investing in the Fund is speculative, not suitable for all investors, and intended for experienced and sophisticated investors who meet the required qualifications and who are willing to bear the high economic risks of such investment, which can include, but are not limited to: loss of all or a substantial portion of the investment; lack of liquidity in that there may be no secondary market for the securities and none is expected to develop; restrictions on transferring interests in the Fund; and potential lack of diversification and resulting higher risk due to concentration.
Conscious Decision to Invest
Investing in the Fund must be a conscientious decision and the Investor must evaluate if he is in position to proceed with the investment or not, at the sole risk and responsibility of the Investor. This material is not intended to provide, and should not be relied upon for, any specific investment strategy.
Forward-Looking Statements
This material can contain forward-looking statements, which give current expectations of the Fund’s future activities and future performance. Any or all forward-looking statements in this material may turn out to be incorrect. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Although the assumptions underlying the forward-looking statements contained herein are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurances that the forward-looking statements included in this discussion material will prove to be accurate.
No Obligation to Revise Statements
In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation that the objectives and plans discussed herein will be achieved. Further, no person undertakes any obligation to revise such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Informative and Non-Binding Nature
All the information provided by MERCAN in this material on the Fund is merely informative and non-binding, intended only to publicize the existence of the Fund, and official information on the Fund should be requested from the Fund’s marketing entity. This document is for informational purposes only and should not be relied upon.
Accuracy and Responsibility
While all of the information in this document is believed to be accurate, we make no express warranty as to the completeness or accuracy of the information, nor can we accept responsibility for errors appearing in the document. None of the Fund’s service providers shall assume or otherwise have any responsibility or any liability whatsoever to recipients, recipients’ affiliates, or any of recipients’ affiliates’ directors, officers, managers, employees, or representatives resulting from the use of the information and material contained in this presentation.
Regulatory Compliance
Interests in the Fund will not be registered under the U.S. Securities Act of 1933, as amended, or any state or non-U.S. securities laws, or with any non-U.S. securities regulator, and the Fund will not be registered under the U.S. Investment Company Act of 1940, as amended. The securities described herein have not been recommended by any U.S. federal or state or non-U.S. securities commission or regulatory authority, including the Securities and Exchange Commission. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense.
Terms and Conditions
The terms and conditions of this disclaimer may be subject to change without notice and if any provision of this disclaimer is found to be invalid or unenforceable, the remaining provisions will continue to be valid and enforceable.
