In the United States, an IRA (individual retirement account) is a government program that allows you to save for retirement where the gains grow tax free. Traditionally you are limited to public investments, stocks, bonds, mutual funds etc. 

However, there is a provision called the Self-Directed Individual Retirement Account (SDIRA) which allows investors to invest into anything they would prefer: companies, land, houses, foreign investments, metals etc. 

Is it Possible to Invest In A Golden Visa via Your Self-Directed IRA?

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This is a question we get asked a lot at Pela Terra. Is it possible to invest in the Portuguese Golden Visa from my self-directed IRA?

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The answer is not straightforward. On the one hand, it is possible. People have successfully done this in the past and shown that it is possible.

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However it is very complex. In our experience, for the majority of people there is too much work and frustration involved to complete all the steps required. We have witnessed many investors begin the process of setting themselves up to invest via an IRA, only to give up halfway through. For this reason, we do not recommend it.

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There is also the question of legality. At Pela Terra, we are not able to offer a valid opinion on whether investing into a Golden Visa is within the rules of IRAs. We know that some lawyers & custodians will say that it is ok. We know that others will say it isn't ok.

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However, should you wish to proceed with trying to invest via your self-directed IRA, our understanding is that you'd need to complete the following steps.

Steps to Investing in the Portugal Golden Visa through a SDIRA

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In the US, a SDIRA can be set up online and completed within a few weeks.  One of the leading companies that does this is RocketDollar. A US-based LLC will also need to be created.

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In Portugal, the investor needs to open a company and a bank account in that company’s name in order to make the investment.  

The Process: 

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1. Create a US-based LLC and SDIRA.
   
   
2. Transfer funds from the current IRA to the newly created SDIRA.
   
   
3. Lawyer to create a corresponding Portuguese LLC with exactly the same naming, of which the investor is 100% shareholder.
   
   
4. Open a commercial bank account for the Portuguese LLC and transfer funds from the SDIRA to this bank account.
   
   
5. Once these steps have been completed, the lawyer can transfer the funds from the Portuguese bank account into the fund investment. 

Final Thoughts: Using Retirement Funds to Invest in the Golden Visa

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Although it is possible to invest in the Portugal Golden Visa using existing retirement funds, this option is complex and, depending on the experience of the Portuguese lawyer in this matter, can be a lengthy and costly process.

At Pela Terra, we have been through this process with a few investors, giving us the experience to advise if it’s the right option for you. However, it is only something we would recommend very sparingly.