Golden Visa
Unlocking Portugal’s Golden Visa with a Self-Directed IRA using a Trust Structure
As Portugal's Golden Visa program continues to develop, U.S. investors are exploring innovative avenues to diversify their portfolios and secure European residency. One such avenue is the Portugal Golden Income Fund, managed by 3 Comma Capital.
The PGI Fund presents a unique opportunity: a professionally managed multi-asset fund in a Golden Visa-eligible jurisdiction, offering liquidity, flexibility, diversification, and equity-like returns with half of equity risk (capital preservation focus). But how can this investment be made using retirement savings, while preserving tax advantages under U.S. law?
The answer lies in the Self-Directed IRA (SDIRA) and a powerful legal structure known as a Checkbook Control Trust.
This article details the full investment pathway - legal, procedural, and practical - for investing in the Portugal Golden Income Fund using a Self-Directed IRA. It is based on Internal Revenue Code (IRC) provisions (§408 and §4975), IRS best practices, and institutional experience structuring international investments for retirement portfolios.
These accounts must be held by an IRS-approved custodian and are governed by strict compliance and fiduciary rules. SDIRAs do not permit personal use of the assets and prohibit certain transactions with “disqualified persons” (e.g., the IRA holder, spouse, lineal descendants, or entities they control).
This structure is not a legal loophole - when implemented correctly, it aligns with IRS rules and provides operational efficiency in cross-border contexts.
A Checkbook Control Trust is a legal structure wherein your SDIRA owns a trust, and you, as the IRA holder, act as the non-compensated trustee. This setup provides you with direct control over investment decisions, eliminating the need for custodian approval for each transaction.
Key Benefits:
Begin by setting up an SDIRA with an IRS-approved custodian. Transfer or roll over funds from existing retirement accounts, such as a 401(k) or Traditional IRA, ensuring a non-taxable custodian-to-custodian transfer under IRC §408(d)(3).
2. Form the Checkbook Control Trust
With the assistance of your custodian or a legal professional, create a single-member, revocable trust specifically designed for SDIRA investments. The SDIRA will be the sole beneficiary, and you will serve as the non-compensated trustee. Obtain an Employer Identification Number (EIN) for the trust from the IRS, which will be used for banking and reporting purposes.
3. Fund the Trust
Your SDIRA custodian will fund the trust by purchasing a 100% beneficial interest in it. Open a bank account in the name of the trust using its EIN. All investment activities, including funding the investment in the Portugal Golden Income Fund, will be conducted through this account.
4. Invest in the Portugal Golden Income Fund
The trust will directly invest in the Portugal Golden Income Fund, ensuring that all earnings and returns flow back into the trust account and ultimately to the SDIRA. This maintains the tax-advantaged status of your retirement account.
Any direct or indirect benefit to the IRA holder or dealings with disqualified persons, such as using the trust to pay personal expenses, are strictly prohibited and can lead to the disqualification of the entire IRA. For this reason, all earnings must flow back into the SDIRA, maintaining the account’s tax-advantaged status.
To align with this, the Portugal Golden Income Fund offers a Distribution Share Class (Class D), specifically designed to pay out annual distributions (typically in the range of 2–3%) directly to the SDIRA. This structure supports retirement income planning while complying fully with IRS rules, as all distributed income remains within the retirement account until formal withdrawals are made.
2. Unrelated Business Income Tax (UBIT)
If the trust engages in active business operations or invests in debt-financed property, UBIT under IRC §§512–514 may apply. However, passive investments like open-ended bond funds, which is the case of the PGI Fund, mutual funds, or private equity without leverage typically avoid UBIT.
3. Foreign Reporting
While the trust is a U.S. entity, foreign bank accounts or investments may trigger additional reporting, and you might need to comply with FBAR (FinCEN Form 114) and FATCA (Form 8938) reporting requirements.
Clients are advised to consult with a qualified tax advisor or legal professional before making investment decisions through an SDIRA.
As the fund is domiciled and regulated in Portugal, Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks are performed upon onboarding, requiring standard documentation such as full identification, proof of address, proof of funds for Golden Visa purposes, trust agreements, and proof of IRA ownership.
Utilizing the described trust structure within your SDIRA to invest in the Portugal Golden Income Fund presents a strategic opportunity to diversify your retirement portfolio while pursuing European residency through the Portuguese Golden Visa program.
As always, consult with your SDIRA custodian and legal or tax advisors to ensure compliance with all applicable regulations and to tailor the investment strategy to your circumstances.
At 3 Comma Capital, we work closely with all parties to ensure a smooth, compliant investment process into the Portugal Golden Income Fund.
For questions or guidance, feel free to reach out to our Investor Relations team.
The PGI Fund presents a unique opportunity: a professionally managed multi-asset fund in a Golden Visa-eligible jurisdiction, offering liquidity, flexibility, diversification, and equity-like returns with half of equity risk (capital preservation focus). But how can this investment be made using retirement savings, while preserving tax advantages under U.S. law?
The answer lies in the Self-Directed IRA (SDIRA) and a powerful legal structure known as a Checkbook Control Trust.
This article details the full investment pathway - legal, procedural, and practical - for investing in the Portugal Golden Income Fund using a Self-Directed IRA. It is based on Internal Revenue Code (IRC) provisions (§408 and §4975), IRS best practices, and institutional experience structuring international investments for retirement portfolios.
What Is a Self-Directed IRA?
A Self-Directed IRA (SDIRA) is an individual retirement account that allows investment in a broader set of asset classes beyond traditional stocks and bonds, such as private equity, real estate, precious metals, and foreign investment funds, as permitted by IRC §408(a).These accounts must be held by an IRS-approved custodian and are governed by strict compliance and fiduciary rules. SDIRAs do not permit personal use of the assets and prohibit certain transactions with “disqualified persons” (e.g., the IRA holder, spouse, lineal descendants, or entities they control).
The Checkbook Control Trust: A Powerful Tool for International Investing
One of the most effective strategies for SDIRA foreign investments is the Checkbook Control Trust: a revocable trust formed solely for the IRA’s benefit. It allows investors to gain direct transactional control while maintaining strict legal and tax compliance.This structure is not a legal loophole - when implemented correctly, it aligns with IRS rules and provides operational efficiency in cross-border contexts.
A Checkbook Control Trust is a legal structure wherein your SDIRA owns a trust, and you, as the IRA holder, act as the non-compensated trustee. This setup provides you with direct control over investment decisions, eliminating the need for custodian approval for each transaction.
Key Benefits:
- Immediate Investment Control: Execute transactions swiftly without custodian delays.
- Simplified Compliance: Avoid state-level LLC filings and associated fees.
- Enhanced Privacy: Trusts are generally not required to register with state authorities, offering an added layer of confidentiality.
Step-by-Step Guide to Investing in the Portugal Golden Income Fund
1. Establish Your Self-Directed IRABegin by setting up an SDIRA with an IRS-approved custodian. Transfer or roll over funds from existing retirement accounts, such as a 401(k) or Traditional IRA, ensuring a non-taxable custodian-to-custodian transfer under IRC §408(d)(3).
2. Form the Checkbook Control Trust
With the assistance of your custodian or a legal professional, create a single-member, revocable trust specifically designed for SDIRA investments. The SDIRA will be the sole beneficiary, and you will serve as the non-compensated trustee. Obtain an Employer Identification Number (EIN) for the trust from the IRS, which will be used for banking and reporting purposes.
3. Fund the Trust
Your SDIRA custodian will fund the trust by purchasing a 100% beneficial interest in it. Open a bank account in the name of the trust using its EIN. All investment activities, including funding the investment in the Portugal Golden Income Fund, will be conducted through this account.
4. Invest in the Portugal Golden Income Fund
The trust will directly invest in the Portugal Golden Income Fund, ensuring that all earnings and returns flow back into the trust account and ultimately to the SDIRA. This maintains the tax-advantaged status of your retirement account.
Why Use a Checkbook Control Trust?
- Speed of Execution: Avoid delays in getting custodian approvals for time-sensitive transactions.
- Cost Efficiency: No LLC setup or franchise tax; fewer ongoing state filings.
- IRS Audit Readiness: Segregated accounts, EIN registration, and clean trust documentation support compliance.
- Simplified Banking: A Trust bank account is fully distinct from personal assets, ensuring legal separation and transparency.
- No Loss of Tax Advantages: As long as the trust is operated correctly, the investment retains tax-deferred or tax-free growth under IRC §408(e).
Compliance and Reporting Considerations
1. Prohibited Transactions (IRC §4975)Any direct or indirect benefit to the IRA holder or dealings with disqualified persons, such as using the trust to pay personal expenses, are strictly prohibited and can lead to the disqualification of the entire IRA. For this reason, all earnings must flow back into the SDIRA, maintaining the account’s tax-advantaged status.
To align with this, the Portugal Golden Income Fund offers a Distribution Share Class (Class D), specifically designed to pay out annual distributions (typically in the range of 2–3%) directly to the SDIRA. This structure supports retirement income planning while complying fully with IRS rules, as all distributed income remains within the retirement account until formal withdrawals are made.
2. Unrelated Business Income Tax (UBIT)
If the trust engages in active business operations or invests in debt-financed property, UBIT under IRC §§512–514 may apply. However, passive investments like open-ended bond funds, which is the case of the PGI Fund, mutual funds, or private equity without leverage typically avoid UBIT.
3. Foreign Reporting
While the trust is a U.S. entity, foreign bank accounts or investments may trigger additional reporting, and you might need to comply with FBAR (FinCEN Form 114) and FATCA (Form 8938) reporting requirements.
Clients are advised to consult with a qualified tax advisor or legal professional before making investment decisions through an SDIRA.
The Portugal Golden Income Fund: The Perfect SDIRA Vehicle
The Portugal Golden Income Fund is an open-ended fund with the following characteristics that make it well-suited for SDIRA investors:- 70% allocation to Investment-Grade Portuguese Corporate Bonds (stable income, low volatility)
- 15-20% - World equities + 10-15% - Alternative Assets (Bitcoin and Gold)
- No exposure to real estate
- Foreign exchange diversification into Euros, hedging potential USD downside exposure
- Distribution share class available (targeting 2%–3% p.a.)
- Fund is fully compliant with the Portuguese Golden Visa program eligibility
- No entry and competitive management fees (1.5–1.75% p.a.)
As the fund is domiciled and regulated in Portugal, Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks are performed upon onboarding, requiring standard documentation such as full identification, proof of address, proof of funds for Golden Visa purposes, trust agreements, and proof of IRA ownership.
Final Thoughts
The Checkbook Control Trust structure enables U.S. investors to legally and efficiently deploy retirement savings into foreign funds like the Portugal Golden Income Fund, while preserving the full tax advantages of their SDIRA. When executed with proper guidance, this route offers unparalleled flexibility, compliance transparency, and international diversification.Utilizing the described trust structure within your SDIRA to invest in the Portugal Golden Income Fund presents a strategic opportunity to diversify your retirement portfolio while pursuing European residency through the Portuguese Golden Visa program.
As always, consult with your SDIRA custodian and legal or tax advisors to ensure compliance with all applicable regulations and to tailor the investment strategy to your circumstances.
At 3 Comma Capital, we work closely with all parties to ensure a smooth, compliant investment process into the Portugal Golden Income Fund.
For questions or guidance, feel free to reach out to our Investor Relations team.
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Duarte Caldas
Investments Principal
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With more than 20 years of experience in financial markets, Duarte specialized in the energy area in the last decade, where he had the opportunity to work with the main European Power and Gas institutions at CIMD Group. Previously, he worked as Market Strategist at IG Markets Iberia.
