In this episode, we explore how U.S. investors are using Self-Directed IRAs (SDIRAs) to participate in Golden Visa programs across Europe — particularly in Portugal, Greece, and Hungary. While these structures offer exciting possibilities for diversification and residency planning, they also introduce significant IRS compliance risks and potential UBIT/UBTI exposure that many investors overlook.
We unpack the intersection between U.S. retirement law and foreign investment migration programs, highlighting what advisors and investors need to know before funding a Golden Visa through a retirement vehicle.
🧩 Key Topics Covered
- What Is a Self-Directed IRA (SDIRA)?
- How these accounts expand investment options beyond traditional stocks and bonds.
- Golden Visa Funds Explained:
- Investment funds that meet government criteria to qualify for residency programs in Europe.
- Typical Investment Sectors:
- • Venture capital
- • Private equity
- • Technology companies
- • Cultural projects
- Minimum Investment Thresholds:
- Vary by country, with each program setting its own capital and regulatory standards.
- Key Investor Considerations:
- • Due Diligence: Vet fund managers, governance, and underlying assets.
- • Risk: Recognize volatility and liquidity constraints.
- • Compliance: Ensure fund eligibility aligns with the host country’s Golden Visa rules.
- UBIT & UBTI Concerns:
- Understand how Unrelated Business Income Tax (UBIT) and Unrelated Business Taxable Income (UBTI) can apply to IRA-held investments in active business ventures or leveraged structures.
💡 Key Takeaways
- Golden Visa funds can be powerful diversification tools but must be handled with expert guidance.
- UBIT/UBTI exposure can negate much of the tax deferral benefit of an IRA if improperly structured.
- Investor due diligence and compliance reviews are essential to avoid disqualification or unexpected taxation.
- Always consult qualified tax and legal advisers before investing through an SDIRA abroad.
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