Using Your IRA or 401(k) to Invest in the Portugal Golden Residence Permit Program

Some investors in the USA enquire about using retirement savings to apply for the Portugal Golden Residence Permit Program. While it is technically possible to finance a qualifying investment through retirement accounts such as IRAs or 401(k) plans, this approach involves a highly specialized structure and should only be considered following comprehensive legal and financial consultation.

Understanding the opportunity

Investors in the USA may hold retirement savings in tax-advantaged structures — most notably, Self-Directed IRAs or Solo 401(k) plans. These structures permit investments in certain alternative assets, including eligible foreign private equity or venture capital funds that qualify under the Portugal Golden Residence Permit Program.

When structured appropriately, this route may enable individuals to:

• Diversify their retirement portfolios internationally
• Meet the program’s minimum investment threshold
• Avoid early withdrawal penalties and immediate tax exposure

However, this is a complex process and not a standard method for participating in the program. It should only be considered by those who directly enquire and are prepared to manage the legal and administrative implications.

Steps involved

To use a retirement account to make a qualifying investment in Portugal, the investor would typically follow these steps:

1. Establish a Self-Directed IRA or Solo 401(k)
   This requires a legal advisor in the USA to review the investor’s current retirement structure and implement a compliant framework that permits international investment deployment.
2. Create a dual-entity structure: 
   • A legal entity in the USA is created to receive the retirement funds 
   • A corresponding Portuguese entity is established to execute the investment and support the Golden Residence Permit application 
3. Complete cross-border legal and financial formalities:
   • Corporate bank accounts are opened in both jurisdictions
   • Documentation and legal authorisations are finalized
   • Retirement funds are transferred to the USA-based entity and subsequently to the Portuguese structure
4. Submit the application
   Once the investment has been executed and the structure confirmed, the application is submitted to Portugal’s immigration authority (AIMA).

Henley & Partners’ role

Henley & Partners collaborates with a respected legal advisory firm in Portugal that is experienced in structuring and managing this type of cross-border investment. Once onboarding is complete, clients are introduced to the lawyers responsible for assisting with the legal process. These legal professionals will provide detailed guidance and instructions to ensure regulatory compliance and support throughout the application journey.

While Henley & Partners does not offer legal advice on retirement account structures in the USA, we are able to coordinate with the legal firm in Portugal to assist eligible investors in navigating the program’s requirements.

Considerations before proceeding

This route to residence is not a standard pathway and involves several additional steps, including multi-jurisdictional legal coordination and long-term administrative oversight. It is only recommended for investors who understand and are willing to manage the inherent complexity.

Any investor considering this approach should consult an appropriately qualified legal advisor and financial specialist in the USA, as their involvement will be required for certain steps in the process. Interested individuals may speak with their Henley & Partners advisor for further guidance and to arrange an introduction to the lawyers managing the process in Portugal.