What Is a Lombard Loan?
A Lombard loan is a securities-backed credit facility that allows you to borrow against your investment portfolio — equities, bonds, funds, or mixed assets — without selling them. The loan is secured by pledging your portfolio as collateral to a private bank, which then lends you a percentage of its market value (the loan-to-value ratio, or LTV).
For high-net-worth individuals pursuing EU citizenship through Malta or residency through programmes in Greece, Portugal, or the UAE, this solves a fundamental problem: how do you fund a €250,000–€1,300,000 qualifying investment without triggering capital gains tax on liquidated positions or losing the compounding returns of a long-term portfolio?
How the facility works
Three steps, and nothing is sold in any of them.
Step one
€2,600,000
You pledge what you already own
The portfolio stays in your name and stays invested. It moves to a custody account the lender can see, and nothing is sold.
Step two
€1,300,000
The bank advances 50% of it
The advance rate is set against what you pledge. 50% is the conservative case used in every example on this site; a diversified large-cap book can reach 65%.
Step three
€1,300,000
That capital buys the programme
Malta — EU Citizenship costs €1,300,000 all in. You pay it with borrowed money, so no position is liquidated and no capital gain is crystallised.
- Loan-to-value (LTV)
- What share of the pledged portfolio the bank will lend. Worked at 50% here, so €1,300,000 of credit needs €2,600,000 of collateral.
- Advance rate and margin call
- The ceiling the loan may not exceed, around 65%. Draw below it and the gap is your safety margin: the collateral can fall that far before the bank asks for more.
- Interest
- Charged on the amount drawn, not on the portfolio. At 3.0% that is €39,000 a year on this facility.
- Collateral
- The pledged securities remain yours and keep paying you dividends and coupons. They are released when the facility is repaid.
What you actually hold after 10 years
Modelled at 8% a year on the portfolio and 3.0% on the facility. The two negative lines are the ones most comparisons in this industry leave out.
- Portfolio after 10 years, nothing sold
- €5,613,205
- Less interest at 3.0% on €1,300,000
- −€390,000
- Less the facility repaid
- −€1,300,000
- Having borrowed
- €3,923,205
- Having paid cash€1,444,444 sold to net €1,300,000 after 20% tax on a portfolio half of which is gain
- €2,494,758
Borrowing is ahead by €1,428,447 here. It is the wrong call if the portfolio averages less than 1.58% a year over the 10 years, because below that the interest and the repayment cost more than the capital you kept invested earned.
Why Lombard Loans Are the Optimal Golden Visa Financing Structure
| Factor | Lombard Loan | Liquidation | Property Mortgage |
|---|---|---|---|
| Capital Gains Tax | None triggered | Potentially significant | None |
| Portfolio returns lost | No — stays invested | Yes | No |
| Financing cost | 3.0% p.a. | 0% | ~5–7% p.a. |
| Speed | 24–72 hours | Days to weeks | 4 weeks |
Which Golden Visa Programmes Accept Lombard-Financed Capital?
| Programme | Lombard Compatible | Notes |
|---|---|---|
| Greece (Fund route) | YES | Fund subscriptions funded by Lombard are eligible |
| Portugal IFICI (Fund route) | YES | AIF/PE fund investments, Lombard-sourced capital accepted |
| UAE Golden Visa | YES | Property or business investment, Lombard-funded accepted |
| Malta Citizenship (MRVP) | YES* | €700K property can be Lombard-funded; contribution from own funds |
| Spain Golden Visa | YES | Real estate investment, mortgage and Lombard both accepted |
| Italy Investor Visa | YES | Government bond and startup routes Lombard-eligible |
| Hungary Guest Investor | YES | Fund route Lombard-compatible |
Lombard Loan Terms: What to Expect in 2026
LTV Ratios by Asset Class
(From 2026 benchmarking survey of 12 private banks)
Listed equities (diversified)
50–65% LTV
Investment-grade bonds
60–75% LTV
Mixed portfolio (equity + bond)
55–70% LTV
Alternative funds
30–50% LTV
The Three Risks Every Lombard Golden Visa Investor Must Understand
Risk 1: Margin Calls
If your portfolio value falls, the bank may issue a margin call. Rule: Maintain a 15–20% buffer between your actual LTV and your facility's margin call trigger.
Risk 2: Covenant Restrictions
Every Lombard facility has covenants restricting what securities you can hold, concentration limits, and whether you can substitute collateral.
Risk 3: The interest is a real cost
Every worked example on this site charges the facility at its full rate and deducts it. Assume no tax relief on it: these facilities are placed in Switzerland and most clients here are resident somewhere else, so whether any of it is relievable is a question for your own tax adviser and not a reason to borrow.
How to Apply for a Lombard Loan for Golden Visa (Step-by-Step)
Portfolio Assessment
Determine your eligible collateral
Bank Selection
Compare on LTV ratio, interest rate spread, covenant flexibility, margin call trigger level
Programme Selection
Choose the golden visa programme matching your investment profile
Tax Position
Confirm the tax treatment of the facility and the funded asset with your own adviser
Dual Application
Apply for Lombard facility and golden visa programme simultaneously
Ongoing Margin Management
Set up quarterly portfolio reviews
Frequently Asked Questions
Can I use a Lombard loan to fund a golden visa investment?
Yes, in most programmes. Greece, Portugal, UAE, Spain, Italy, and Hungary all accept Lombard-financed capital. Malta has partial restrictions.
What is the minimum portfolio size for a Lombard golden visa loan?
Most private banks require a minimum portfolio of €500,000 to €1,000,000. For a €250,000 golden visa investment, you typically need €400,000–€500,000 in eligible securities.
What happens if my portfolio drops and triggers a margin call?
The bank will require you to repay capital, add collateral, or sell assets to reduce LTV. Maintaining a 15–20% buffer below your facility limit significantly reduces this risk.
How quickly can I access a Lombard loan?
Once a facility is established, drawdowns occur within 24–72 hours. Establishing the initial facility takes 2–6 weeks.
Luke D. Coupe
MSc Global Finance (City, University of London) | CISI Level 7 Chartered Wealth Manager
Luke D. Coupe is a Chartered Wealth Manager specialising in cross-border investment structures and Lombard lending for investment migration. His CISI Level 7 designation is publicly verifiable via the CISI member directory. He founded goldenvisas.ai to bring institutional-grade financial analysis to the golden visa advisory space.
Discuss Your Lombard Loan Structure with a CISI Level 7 Chartered Wealth Manager
Half an hour to assess your portfolio's Lombard eligibility, calculate your optimal LTV, and pick the right programme for your position. $100, paid up front, no commission on anything I recommend.