Golden Visa
Unlocking the Golden Visa Through Your IRA: How U.S. Investors Can Use a Self-Directed IRA to Invest in Portugal
As Portugal’s Golden Visa program continues to evolve, new paths have emerged for international investors to participate in the country’s economy while securing European residency. One particularly compelling route now gaining attention in the U.S. is the use of Self-Directed IRAs (SDIRAs) to invest in open-ended funds eligible under the Golden Visa framework. For investors wondering how to use an IRA for Golden Visa Portugal, this approach offers both tax efficiency and global mobility.
This article outlines how SDIRAs work, why they’re legally suitable for Golden Visa investments, and how U.S. investors can structure their accounts to take advantage of this opportunity, without triggering tax penalties or falling afoul of IRS rules.
The flexibility of an SDIRA stems from IRS Code Section 408, which explicitly allows a wide variety of asset classes, barring only a few exceptions such as life insurance contracts and collectibles.
Importantly, an SDIRA must be structured properly to avoid IRS-defined “prohibited transactions” under Section 4975, which generally involve dealings between the IRA and “disqualified persons,” including the IRA owner or their family.
► For a deeper dive into how SDIRAs work and how to set one up, check out our full guide: Self-Directed IRAs – A Guide for Investors.
A recent legal opinion confirms that:
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.
This aligns with the Substance Over Form doctrine, which focuses on the economic substance of the investment over its formal structure. If the investment is made solely for the benefit of the SDIRA, and not the individual directly, it remains compliant with IRS rules.
► If you're new to the Portuguese Golden Visa or want to understand the full scope of requirements, fund options, and citizenship timelines, read our detailed FAQ: Portugal Golden Visa Explained.
Note: While SDIRA custodians administer the accounts and ensure compliance, they are legally prohibited from providing investment advice, per IRS regulations.
For those concerned about tax implications of foreign fund investment with IRA, when structured correctly under Sections 408 and 4975 of the IRS Code, such investments remain tax-deferred, with no taxable event triggered at the time of transfer or investment.
At 3 Comma Capital, we are proud to support investors at the intersection of finance and global freedom. If you’re ready to explore this route or want a personal consultation, get in touch with our team today.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult with a qualified tax advisor or legal professional before making investment decisions through an SDIRA.
This article outlines how SDIRAs work, why they’re legally suitable for Golden Visa investments, and how U.S. investors can structure their accounts to take advantage of this opportunity, without triggering tax penalties or falling afoul of IRS rules.
What Is a Self-Directed IRA (SDIRA)?
A Self-Directed IRA is a type of Individual Retirement Account that allows individuals to invest in a broader set of assets than traditional IRAs typically offer. While most brokerage firms limit you to stocks, bonds, and mutual funds, an SDIRA gives you the freedom to invest in:- Real estate
- Private equity
- Venture capital
- Cryptocurrencies
- Foreign open-ended investment funds
The flexibility of an SDIRA stems from IRS Code Section 408, which explicitly allows a wide variety of asset classes, barring only a few exceptions such as life insurance contracts and collectibles.
Importantly, an SDIRA must be structured properly to avoid IRS-defined “prohibited transactions” under Section 4975, which generally involve dealings between the IRA and “disqualified persons,” including the IRA owner or their family.
► For a deeper dive into how SDIRAs work and how to set one up, check out our full guide: Self-Directed IRAs – A Guide for Investors.
Can a SDIRA Invest in a Portuguese Fund for the Golden Visa?
Yes. Based on technical guidance and legal interpretations, a U.S. investor can use a Self-Directed IRA to invest in an open-ended Portuguese fund—making a Portugal Golden Visa fund investment with SDIRA a legally sound and increasingly popular strategy.A recent legal opinion confirms that:
- The investment must be passive and made directly from the SDIRA account.
- The SDIRA must remain the sole beneficiary of the investment.
- Funds must be transferred custodian-to-custodian to avoid triggering taxable events.
- The SDIRA must invest at least €500,000 to meet the minimum Golden Visa investment threshold.
- 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.
This aligns with the Substance Over Form doctrine, which focuses on the economic substance of the investment over its formal structure. If the investment is made solely for the benefit of the SDIRA, and not the individual directly, it remains compliant with IRS rules.
► If you're new to the Portuguese Golden Visa or want to understand the full scope of requirements, fund options, and citizenship timelines, read our detailed FAQ: Portugal Golden Visa Explained.
The Role of a SDIRA Custodian
A SDIRA custodian is a regulated entity that administers retirement accounts in compliance with IRS rules. In the case of a Golden Visa-eligible investment:- The custodian helps the investor establish and fund the SDIRA, either through rollover or direct contribution.
- It ensures that all transactions are conducted at arm’s length, documented, and properly reported (Forms 5498, 1099-R, 990-T if needed).
- The client is guided through the process of wiring funds into the Portugal-based open-ended fund.
- The custodian ensures ongoing IRS compliance, including asset valuation at fair market value.
Note: While SDIRA custodians administer the accounts and ensure compliance, they are legally prohibited from providing investment advice, per IRS regulations.
Why the Portugal Golden Income Fund?
3 Comma Capital’s Portugal Golden Income Fund is specifically structured to align with U.S. investor needs and Golden Visa eligibility. Here are a few standout features:- 70% allocation to bonds – a capital-preserving structure in contrast to higher-risk equity funds.
- 15% U.S. and World equities + 15% Digital Assets – providing meaningful upside potential in diversified global markets.
- No entry fees, and distribution share classes available (3–4% per annum), a rare feature among Golden Visa-eligible funds.
- No real estate exposure, which eliminates complications around direct property ownership and aligns with SDIRA compliance (real estate owned by the IRA must not be used personally).
- The fund is fully compliant with the Portuguese CMVM and eligible under the Golden Visa fund route, with a minimum subscription of €500,000.
How to Get Started
If you're a U.S. investor interested in obtaining Portuguese residency while preserving and growing your retirement assets, here's how to proceed:- Open an SDIRA with a trusted custodian.
- Fund it via rollover or transfer from an existing IRA, 401(k), or other retirement account.
- Authorize the investment into the Portugal Golden Income Fund through your SDIRA Custodian.
- Ensure the documentation issued by 3 Comma Capital includes proof of Golden Visa eligibility and investment thresholds.
- Submit your application with the help of a Portuguese immigration lawyer (we can recommend partners upon request).
Final Thoughts
Combining retirement planning with global mobility may seem unconventional—but for the globally minded investor, it’s a powerful synergy. With the right legal structure and a compliant fund like the Portugal Golden Income Fund, it’s entirely feasible to:- Stay tax-compliant in the U.S.
- Diversify your IRA internationally
- Secure a path to European residency
For those concerned about tax implications of foreign fund investment with IRA, when structured correctly under Sections 408 and 4975 of the IRS Code, such investments remain tax-deferred, with no taxable event triggered at the time of transfer or investment.
At 3 Comma Capital, we are proud to support investors at the intersection of finance and global freedom. If you’re ready to explore this route or want a personal consultation, get in touch with our team today.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult with a qualified tax advisor or legal professional before making investment decisions through an SDIRA.
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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.
