- Alessandro Palombo’s company offers a “Bitcoin in Portugal” program linked to the Golden Visa.
- Investors must put €500,000 into a private equity fund to secure the visa.
- The investment fund supports local companies in Portugal, giving them Bitcoin exposure.
- Portugal’s Golden Visa program does not require physical relocation, enhancing its appeal
In a recent Pompliano podcast, Alessandro Palombo, the founder of a company that company specializes in obtaining second visas while retaining exposure to Bitcoin, explained the requirements for Bitcoin in Portugal program.
“Back in 2012, the country Portugal decided to open up the doors, allowing investors to bring money into the country in various ways, and in exchange for that, offer them the so-called Golden Visa, which is essentially a residency permit.” So, this initiative allows investors to apply for citizenship after five years.
The program gained traction, making Portugal “arguably the best and the most efficient citizenship by investment program in Europe,” according to Palombo. However, huge changes to the law occurred in October 2023. “The legislation changes and makes investments in real estate or any adjacent matter also has private equity funds not anymore eligible for Golden Visas,” he noted. So, this shift prompted Palombo’s company to innovate a new approach for interested investors.
How Bitcoin Fits into Portugal’s Golden Visa
Palombo’s company devised a unique method for acquiring a Golden Visa in Portugal while maintaining exposure to Bitcoin. “You invest €500,000 in a private equity fund, which invests 60% or more of the net asset value in local commercial companies,” he explained. So, the process involves applying through a lawyer and waiting 12 to 18 months to receive the Golden Visa. “You need to spend 14 days every two years in the country to maintain your Golden Visa,” Palombo added.
Furthermore, the program requires investors to demonstrate “basic knowledge of the Portuguese language” and have “a clean criminal record.” This allows investors to avoid moving their fiscal residence to Portugal. “This is a critical aspect that made this program so successful,” Palombo stated. Unlike other European countries, Portugal’s program does not mandate physical relocation, which adds to its appeal.
Bitcoin in Portugal: The Mechanics of Investment
Palombo explained the structure of the investment. “You are allowing for when people put that €500,000 into this private equity fund, then what you all are doing is investing in local companies inside of Portugal, and those companies are holding Bitcoin.” So, this method gives investors indirect exposure to Bitcoin while securing a Golden Visa.
However, there is a catch. “Unfortunately, it’s strictly required for an investor to invest €500,000 from a foreign bank account into your Portuguese bank account,” Palombo clarified. Despite efforts to introduce Bitcoin as a payment method, the program remains tied to the Euro. Yet, this innovation has gained huge attention. “We went viral and we got hundreds of applications in 48 hours,” Palombo shared.
Bitcoin in Portugal: Expanding the Bitcoin Exposure
Palombo acknowledged the interest in diversifying beyond Bitcoin. “For fund number one, the exposure is going to be exclusively in Bitcoin,” he confirmed. However, the company is considering expanding its portfolio. “We are going to expand the portfolio of products of Unbound,” Palombo noted, hinting at future investments in networks like Ethereum and Solana.
Additionally, the first fund focuses solely on companies investing in Bitcoin via ETFs. “The current one investment strategy focuses only and exclusively on investing in companies whose investment strategy is acquiring only exposure to Bitcoin,” Palombo noted. So, this conservative approach ensures the quality and security of the investment.
The Broader Impact of Bitcoin in Portugal
Palombo sees this initiative as beneficial not only for investors but also for Portugal. “We will promote web adoption and Bitcoin adoption at an institutional level also in the country,” he said. So, the investment strategy aligns with the broader goal of making Portugal a primary hub for web3 in Europe. “Portugal has been and in our view will be a primary hub for web3 in Europe,” Palombo emphasized.
Also, this strategy benefits the local economy. “The companies pay taxes in Portugal,” Palombo pointed out. Thus, this creates a symbiotic relationship where both the investor and the host country stand to gain. “In our view, this is a very valuable maneuver that will bring back eventual exposure to Portugal,” Palombo added.
Conclusion
Alessandro Palombo’s insights reveal that the program Bitcoin in Portugal and the Golden Visa are a unique intersection of cryptocurrency and European citizenship. The program offers a unique opportunity for investors to gain European citizenship while maintaining exposure to Bitcoin. Despite the requirement to use Euros, the program’s flexibility and the potential for expansion into other cryptocurrencies make it an attractive option.
Anthony Pompliano status; Image source
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
