Golden Visa Fund Fee Comparison

Subscription Fee (Entry Fee)

• What it is: One-time charge when you invest
• Typical range: 1-3% of investment
• Cost on €500,000: €5,000-€15,000
• When charged: At time of subscription

Management Fee (Annual)

• What it is: Ongoing fee for fund management
• Typical range: 1-3% per year
• Cost on €500,000: €5,000-€15,000 per year
• When charged: Deducted from fund assets

Performance Fee (Carried Interest)

• What it is: Share of profits above a hurdle rate
• Typical structure: 20% of returns above hurdle (often 6-8%)
• When charged: Upon fund exit or distribution
• Note: Only applies if fund performs well

Other Fees to Watch:

• Custodian fees (fund asset holding)
• Audit and legal fees (passed to investors)
• Transaction costs (buying/selling portfolio companies)
• Exit/redemption fees (some funds charge for early exit)

Example: 7-Year Holding Period, €500,000 Investment

Low-Fee Fund:

• Subscription fee: 1% = €5,000
• Management fee: 1.5% × 7 years = €52,500
• No performance fee (assuming modest returns)
• Total: ~€57,500

High-Fee Fund:

• Subscription fee: 3% = €15,000
• Management fee: 2.5% × 7 years = €87,500
• Performance fee: 20% of (10% return - 6% hurdle) × 7 years = ~€14,000
• Total: ~€116,500

Difference: €59,000 over 7 years

This difference is larger than many investors realize. A fund would need to significantly outperform to justify double the fees—and there's no guarantee it will.

10-Year Calculation (Citizenship Timeline):
The difference compounds further. That €59,000 gap becomes approximately €80,000+ over 10 years.

Diversified Mutual Funds

• Subscription: 0-1%
• Management: 0.5-1.5%
• Performance: Rare
• Total 7-year cost: €17,500-€57,500
• Note: Lowest fees, but also lowest return expectations

Private Equity Funds

• Subscription: 1-3%
• Management: 1.5-2.5%
• Performance: 20% over hurdle
• Total 7-year cost: €57,500-€105,000 (excluding performance)
• Note: Standard PE fee structure

Venture Capital Funds

• Subscription: 2-3%
• Management: 2-3%
• Performance: 20-25% over hurdle
• Total 7-year cost: €75,000-€120,000 (excluding performance)
• Note: Highest fees, justified by active management claims

Infrastructure Funds

• Subscription: 1-2%
• Management: 1-2%
• Performance: 10-20% over hurdle (often lower than PE)
• Total 7-year cost: €40,000-€85,000
• Note: Often lower fees than PE due to stable cash flows

Where Fees Hide:

1. Fund-of-Funds Structures
   Some Golden Visa funds invest in other funds, creating fee layers. You pay the top-level fees PLUS underlying fund fees.

2. Transaction Costs
   Costs of buying/selling portfolio companies may be passed to investors beyond stated fees.

3. Organizational Expenses
   Fund setup, legal, and operational costs sometimes charged separately.

4. Currency Hedging Costs
   If the fund hedges currency exposure, these costs reduce returns.

5. Exit/Redemption Fees
   Some funds charge additional fees for exiting, even after the mandatory period.

How to Find Hidden Fees:

• Request the full Private Placement Memorandum (PPM)
• Ask specifically: "What fees beyond subscription and management will I pay?"
• Request a total expense ratio (TER) if available
• Ask for fee disclosure in writing

The Reality:
For most individual Golden Visa investors, fees are not negotiable. Fund terms are set in the offering documents and apply to all investors equally.

Exceptions:

• Some funds offer fee discounts for early investors
• Family offices or institutional-size investments may negotiate
• Subsequent funds from the same manager may offer loyalty terms

What You CAN Do:

• Choose lower-fee funds from the start
• Compare total cost across similar funds
• Avoid funds with unusual fee structures
• Don't pay PE/VC fees for mutual fund-like strategies

The Best Fee Negotiation:
Voting with your feet. Choose funds with reasonable fees rather than trying to negotiate with expensive funds.