Crypto Meets Citizenship: Portugal’s New Fund Grants Residency

The KvarnPortugal Fund: A New Gateway to Residency

Lisbon-based investment firm FundBox, in partnership with trading platform Kvarn X, has launched the KvarnPortugal Fund, a first-of-its-kind investment product that helps crypto investors secure residency in Portugal. The fund is based on the CoinDesk 20 index, which tracks the top 20 digital assets by market capitalization.

By investing a minimum of €500,000, individuals can qualify for Portugal’s Golden Visa program, effectively combining cryptocurrency investment with the benefits of European residency.

Why Portugal is a Crypto Haven

Portugal has established itself as a crypto-friendly country due to its favorable regulatory environment:

• The Banco de Portugal began licensing cryptocurrency exchanges and service providers in 2021, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
• Crypto capital gains for individuals have historically been tax-free, making Portugal one of the most attractive places in Europe for digital asset investors.
• The Golden Visa program provides a pathway to permanent residency and citizenship after five years, offering a long-term incentive for investors.

How the Golden Visa Program Works

Portugal’s Golden Visa program was launched in 2012 to attract foreign investment. Traditionally, qualifying investments included:

• Real estate purchases
• Capital transfers to Portuguese banks or funds
• Job creation in the country

With the launch of the KvarnPortugal Fund, crypto investments are now an eligible asset class for the residency-by-investment program. This allows investors to hold Bitcoin and other top cryptocurrencies while securing Portuguese residency.

Investment Strategy of the KvarnPortugal Fund

The KvarnPortugal Fund allocates 80% of its assets to Bitcoin and diversifies the remaining 20% across the CoinDesk 20 Index. This approach offers investors:

• Exposure to Bitcoin, the dominant cryptocurrency
• Diversification across the broader crypto market
• A regulated investment structure that qualifies for Portugal’s Golden Visa

The fund’s fee structure includes:

• 0.05% management fee
• 2.5% subscription fee
• €1,250 KYC (Know Your Customer) processing fee

The fund is open for investment until February 2027, giving interested investors ample time to participate.

Alternative Residency Options for Crypto Investors

Apart from the Golden Visa, crypto investors may also consider Portugal’s D7 Visa, which is designed for individuals with passive income. This option allows residency without the requirement of a large upfront investment, making it suitable for digital nomads and investors earning income from crypto holdings.

Market Response and Future Outlook

The introduction of crypto-based residency funds like KvarnPortugal has been well received by investors worldwide. With its high quality of life, strategic location in the European Union, and crypto-friendly policies, Portugal is expected to continue attracting high-net-worth individuals looking for both investment opportunities and residency benefits.

Portugal is leading the way in integrating cryptocurrency investments into its residency programs, offering a new pathway for digital asset investors. The KvarnPortugal Fund is a testament to this innovative approach, allowing investors to diversify their portfolios while obtaining residency in one of the most crypto-friendly nations in the world.

As the global financial landscape evolves, Portugal’s progressive stance on cryptocurrency ensures that it remains a top destination for blockchain entrepreneurs, crypto investors, and financial innovators.