Portugal: A Rising Star in the Alternative Fund Market


Staff member
May 18, 2022
Portugal: A Rising Star in the Alternative Fund Market

Portugal, a nation known for its rich history and picturesque landscapes, is now emerging as a promising hub for the alternative fund market. The country's recent regulatory changes and strategic location are attracting global hedge fund managers, making it an attractive destination for alternative investment funds (AIFs).

The Portuguese Securities Market Commission (CMVM) has introduced a new regulatory framework that simplifies the process for setting up and managing AIFs. This move is part of Portugal's broader strategy to attract international investment and diversify its economy. The new regulations offer a streamlined process for fund registration and management, making it easier for hedge fund managers to establish their operations in Portugal.

One of the key features of Portugal's new regulatory framework is the introduction of the Reserved Alternative Investment Fund (RAIF). The RAIF is a type of AIF that offers significant flexibility and efficiency to fund managers. It does not require authorization from the CMVM, which significantly reduces the time and cost associated with setting up a fund. This feature makes Portugal an attractive destination for hedge fund managers looking to quickly establish their operations and start investing.

Portugal's strategic location is another factor contributing to its appeal as a hub for the alternative fund market. Positioned at the crossroads of Europe, Africa, and the Americas, Portugal offers hedge fund managers access to a diverse range of markets. This geographical advantage, combined with the country's robust infrastructure and skilled workforce, makes Portugal an ideal base for hedge fund operations.

In addition to its regulatory and geographical advantages, Portugal also offers a favorable tax environment for hedge funds. The country has a competitive corporate tax rate and a wide network of double tax treaties, which can help hedge funds minimize their tax liabilities.

In conclusion, Portugal's new regulatory framework, strategic location, and favorable tax