For US citizens buying property in Portugal or making a Golden Visa investment, the assumption is almost always the same — that you need to liquidate your US portfolio to fund it. This guide explains why that assumption is wrong, and what the smarter alternative looks like.

The Problem With Liquidating Your US Portfolio

When US investors sell their portfolio to fund an overseas property purchase or investment, the consequences are significant. Capital gains tax is triggered on everything sold. Long-term compounding is interrupted. And positions are exited at a time that suits the transaction, not the investor's strategy.

For many US citizens investing in Portugal, this unnecessary tax event is the single most expensive part of the entire process — and it's almost always avoidable.

Asset-Backed Financing for US Citizens in Portugal

Asset-backed financing — also known as Lombard lending or portfolio-backed financing — allows US investors to borrow against their existing portfolio rather than selling it.

Your US stocks, bonds, funds and ETFs remain exactly where they are, continuing to compound. A European private bank lends against your portfolio as collateral. That capital funds your Portugal property purchase, Golden Visa fund investment, or both.

No sale. No capital gains event. No disruption to your long-term investment strategy.

How It Works in Practice

A US investor holds a $5 million portfolio. Rather than selling $1 million — and triggering a substantial IRS tax liability — they borrow against the portfolio instead. The portfolio stays invested. The liquidity is released. The capital is deployed into Portugal.

Because the loan is fully secured against liquid assets, borrowing terms tend to be more competitive than a standard mortgage. Eligible assets typically include listed equities, investment-grade bonds, diversified funds and ETFs. Eligibility is assessed on a case-by-case basis.

Why US Citizens Need the Right Partners

Accessing asset-backed financing as a US citizen in Europe requires advisors structured to operate across both systems. Most European firms are not set up to serve American clients. Portugal Pathways works alongside SEC-registered advisors and US tax specialists — ensuring full alignment with IRS reporting requirements from the start.

Find Out If You Qualify

If you are a US citizen considering property or a Golden Visa investment in Portugal and you have a portfolio of $1 million or more, speak with the Portugal Pathways expert team today.

Book a discovery call

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About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

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Disclaimer: The information on the Portugal Pathways website and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.

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