Opening a Portuguese bank account is not strictly mandatory for transferring funds for a Golden Visa investment.

The primary legal requirement, as outlined in paragraph 11 of article 65-D of Decree-Law 84/2007, is to prove that the funds originate from abroad. While obtaining a declaration from the Investor’s bank is the standard method to fulfill this requirement, alternative measures are increasingly being used.

A Portuguese bank account serves as more than just a way of transferring funds, since it is also key for proving the movement of capital. Having a personal account provides direct oversight of funds and transactions as well as simplified management of expenses.

In addition to this, the Investor takes immediate “ownership” of the investment, as the Units of Participation will be deposited in the account, and they have flexibility in managing ongoing or future transactions related to the investment.

Unfortunately, opening a bank account has become a lengthy and bureaucratic process. Due to stricter Bank of Portugal regulations, Investors now face more extensive documentation requirements in addition to proof of identity, proof of address, a Portuguese taxpayer number (NIF), financial statements from the country of origin, and detailed evidence of the origin of funds. What can also complicate the process is that most of these documents need to be duly legalized with an apostille or certification from the Portuguese Embassy of the issuing country.

Following these checks, banks perform rigorous and extended compliance reviews, which often take 3-4 months, largely due to inefficiencies in the banking system rather than genuine security concerns. These delays can expose investors to risks such as changes to the Golden Visa program and missed opportunities, especially since the timeline to Portuguese citizenship now begins at the date of application submission.

Given the delays in opening personal bank accounts, alternative methods have emerged to streamline the process while maintaining compliance with Portuguese law. These are:

Jumbo Bank Accounts from Investment Funds

Some investment funds now offer a shared “jumbo” account option, or an omnibus account held by the management company on behalf of clients, allowing Investors to transfer funds directly to a centralized account. Clients then open an account of Register and Deposit of Participation Units (shares) of the fund they subscribe.

This innovative solution speeds up the process while ensuring compliance, as the fund itself is responsible for the Know Your Customer (KYC) and anti-money laundering (AML) procedures.

Advantages:

  • Faster processing times
  • Simplified transfer process for Investors
  • Avoid banking costs, which include significant declaration issue costs or maintenance fees
  • Postponing the Portuguese bank account opening until it can be done in person, when visiting the country, which will be quicker

Disadvantages:

  • Potential risk of “putting all the eggs in one basket” if issues arise with the fund, especially for funds that are not diversified
  • Payments in Portugal have to be done through your foreign bank, which may carry high foreign exchange fees

Law firm-managed client account

This method has been in use since the Golden Visa program’s inception. Law Firms can act as intermediaries by providing a client-specific bank account to bridge funds between the Investor and the chosen investment.

How it works:

  1. The Investor engages a reliable Law Firm for their Golden Visa process.
  2. An agreement is signed, detailing the use of the escrow account and instructions for the investment.
  3. The Investor transfers funds to the Law Firm’s bank account.
  4. The Law Firm completes the investment on behalf of the client.
  5. The bank issues a declaration confirming the funds originated from abroad and were used for a specific investment.
  6. The investment fund issues a declaration confirming the investment and its allocation to the Investor (e.g., Units of Participation).

This process complies with legal requirements, and many Golden Visa applications have been successfully processed using this method. Additionally, Investors can temporarily use the Law Firm’s account for holding their investment until their personal bank account is opened, if necessary.

Advantages:

  • Well-established and proven method;
  • Dual compliance ensured by both the bank and the Law Firm;
  • Flexible custody options while awaiting a personal bank account.

Limitations:

  • Requires trust in the Law Firm managing the funds;
  • Not all the Law Firms offer this option for their clients.

Conclusion

While opening a Portuguese bank account remains the traditional route, alternatives such as jumbo bank accounts and Law Firm-managed client accounts provide practical and legally compliant options for Investors facing delays or other challenges. These solutions ensure timely investments, maintain compliance with anti-money laundering laws, and keep the Golden Visa process on track. For Investors navigating these complexities, professional guidance from experienced legal advisors is crucial to choosing the right path.