Return on Investment (ROI) Insights

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With the elimination of real estate from the Golden Visa-qualifying investment menu, the primary focus has shifted to regulated private equity and venture capital funds. These financial instruments offer a passive pathway with varied return profiles depending on the fund’s sector, liquidity terms, and capital deployment strategy.

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Most CMVM-regulated funds designed for Golden Visa investors focus on long-horizon sectors like healthcare, renewable energy, logistics, and technology. The historical net internal rates of return (IRRs) for these funds have ranged between 4% and 8% annually, although performance is not guaranteed and can fluctuate with market cycles. Investors should pay close attention to the fund’s track record, portfolio composition, fee structure, and governance mechanisms.

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Capital lock-up periods typically range from six to eight years, aligning with fund lifecycle norms. Early exits are generally prohibited, and although some funds may offer a secondary market or redemption options, liquidity is not assured. Upon completion of the minimum five-year holding period for immigration purposes, investors can remain invested or divest without jeopardizing residency rights, provided permit renewal is not imminent.

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In addition to fund-based investments, cultural or R&D contributions—while not designed for financial return—can offer reputational and philanthropic value, particularly for investors aligned with ESG or impact investment philosophies. However, applicants should be aware that these routes are non-refundable and do not generate ROI in the traditional sense.

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Ultimately, fund selection should involve comprehensive due diligence, including review of audited financials, custodial arrangements, CMVM licensing, and the experience of general partners. Legal and tax advisors should also evaluate exit tax implications, especially for non-residents who may be subject to capital gains tax upon liquidation.

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