Atrium Reference

Glossary: Portugal Golden Visa & U.S. Tax Terms

20 key terms every American Golden Visa investor must understand: U.S. tax regimes (PFIC, FATCA, Form 8621), Portuguese fiscal frameworks (NHR 2.0 / IFICI), immigration mechanics (AIMA, ARI), and treaty interactions.

PFIC

Passive Foreign Investment Company. A US tax classification under IRC §1297 that applies to most non-US investment funds, including CMVM-regulated Portuguese funds. PFIC ownership triggers annual IRS Form 8621 filing for US persons.

Form 8621 QEF Election MTM Election Section 1291

Form 8621

IRS form filed annually by US persons owning shares in a PFIC. Reports PFIC income and computes tax under default Section 1291 regime, or under elected QEF (Qualified Electing Fund) or Mark-to-Market regime.

PFIC QEF Election MTM Election

FATCA

Foreign Account Tax Compliance Act (US, 2010). Requires US persons holding $200K+ aggregate foreign financial assets (single filer abroad) to file IRS Form 8938 annually. Foreign banks must report US-owned accounts to IRS.

FBAR Form 8938

FBAR

Foreign Bank Account Report (FinCEN Form 114). Mandatory for US persons whose aggregate foreign account balance exceeds $10,000 at any point during the year. Filed separately from tax return through BSA e-Filing.

FATCA Form 8938

QEF Election

Qualified Electing Fund election under IRC §1295. Allows US PFIC shareholders to pass-through fund earnings annually instead of facing Section 1291 punitive treatment. Requires PFIC Annual Information Statement (AIS) from fund manager.

PFIC Form 8621 MTM Election

MTM Election

Mark-to-Market election under IRC §1296. Alternative PFIC election that taxes unrealized appreciation annually as ordinary income. Requires the fund to qualify as marketable security.

PFIC Form 8621 QEF Election

NHR

Non-Habitual Resident regime — Portugal's preferential tax regime for new residents. Original NHR closed in 2024; replaced by IFICI under Portaria 12/2025.

IFICI NHR 2.0 Portugal tax residency

IFICI

Incentivo Fiscal à Investigação Científica e Inovação. Portugal's NHR 2.0 successor regime under Portaria 12/2025. Offers 20% flat tax on Portuguese-source professional income from approved high-value scientific/innovation activities for 10 years.

NHR NHR 2.0 Portugal tax residency

CMVM

Comissão do Mercado de Valores Mobiliários. Portugal's securities market regulator. CMVM authorizes investment funds eligible for the Portugal Golden Visa fund route.

AIMA ARI CMVM-regulated fund

AIMA

Agência para a Integração, Migrações e Asilo. Portuguese immigration authority that processes Golden Visa applications since October 2023, succeeding SEF.

ARI Golden Visa Portugal residency

ARI

Autorização de Residência para Investimento. The formal name of the Portugal Golden Visa residency permit issued under Lei nº 23/2007.

AIMA Golden Visa

Portugal Golden Visa

Portugal's residency-by-investment program (ARI under Lei 23/2007). Offers 5-year residency leading to EU citizenship eligibility. Since October 2023, qualifying routes are CMVM-regulated investment funds (€500K minimum), cultural donation (€250K), and company investment (€500K + 5 jobs). Real estate route closed.

AIMA ARI CMVM

Section 1291

IRC §1291 — Excess Distribution Regime. The default PFIC tax treatment when no QEF or MTM election is made. Applies punitive tax + interest charges on 'excess distributions' from PFIC holdings, often doubling the effective tax cost.

PFIC Form 8621 QEF Election

Section 1297

IRC §1297 — defines a PFIC: any foreign corporation where 75%+ of gross income is passive OR 75%+ of assets produce passive income. Most CMVM-regulated funds meet this definition.

PFIC Section 1291

Form 8938

Statement of Specified Foreign Financial Assets. IRS form for FATCA reporting by US persons with aggregate foreign financial assets above thresholds ($200K for single filers abroad).

FATCA FBAR

Portugal-US Tax Treaty

Bilateral tax treaty signed 1994, in force 1996. Allocates taxing rights between US and Portugal, provides tie-breaker for residency, reduces withholding on dividends/interest, and provides foreign tax credit mechanism to mitigate double taxation.

FATCA PFIC NHR

Schengen Area

27 European countries with abolished passport controls at common borders. Portugal Golden Visa holders enjoy visa-free travel throughout the Schengen Area as legal residents of Portugal.

EU Residency Portugal Golden Visa

NIF

Número de Identificação Fiscal. Portuguese tax identification number, required for any financial transaction in Portugal including Golden Visa fund subscription.

AIMA Portugal banking

PFIC AIS

PFIC Annual Information Statement. Document required from a PFIC's fund manager to support a Qualified Electing Fund (QEF) election. Not all CMVM funds issue PFIC AIS automatically — must be requested.

PFIC QEF Election Form 8621

Lei nº 23/2007

Portuguese law governing foreign nationals' entry, stay and exit from Portugal. Article 90-A establishes the ARI (Autorização de Residência para Investimento) — the Portugal Golden Visa program.

ARI Golden Visa AIMA