The Portuguese Government has recently proposed changes to the Nationality Law. Among the potential changes is an increase in the residence period required for citizenship from five years to ten years, counted from the date the residence permit is issued.

It is important to emphasize that this is only an early-stage proposal. The draft is currently under parliamentary review, with committee discussions continuing into October, when the Government will send the final draft to Parliament for final discussion and approval. Only after approval by majority, will the same be sent to the President of the Republic who will then Ratify the Law and order its publication in the Official Journal or Exercise veto and send the proposal back to Parliament to be corrected or even Request the intervention of the Constitutional Court if he finds that there are constitutional rights and/or principles being violated.

Until any changes are formally approved and rectified, the current rules remain fully in force.

Who Would Be Protected?

Any future changes to the Nationality Law will apply universally, except to those who have already submitted their citizenship applications. Pending citizenship applications will continue to be assessed under the law in effect at the time of submission, safeguarding applicants against retroactive changes.

It is important to note that being a current resident or holding a Golden Visa does not automatically protect investors under the current five-year path to citizenship. Only applicants who have formally applied for nationality before the new law enters into force are expected to be “grandfathered” under the existing rules. Retroactivity is generally prohibited, but the law protects only citizenship cases which are formally submitted.

The Relationship Between Golden Visa, Citizenship, and Permanent Residence

  • The Golden Visa program provides the right to reside in Portugal; it does not grant citizenship or permanent residence automatically.
  • Citizenship eligibility is determined exclusively by the Portuguese Nationality Law, which currently requires five years of legal residence and proof of Portuguese language knowledge.
  • All Permanent Residence Permits require proof of Portuguese language knowledge.
  • Unless additional transition rules are adopted, ongoing citizenship applications are the only ones protected in case of changes in the Nationality Law.
  • As per the known draft of the Foreigners Law, Golden Visa holders remain fully protected under their residence permits against any program changes.

Permanent Residency as a Stable Alternative

Even if the path to citizenship is extended, Golden Visa holders and their families may secure Permanent Residence (PR). The PR for Investment Activity offers several advantages:

  • No limit on absences from Portugal — holders do not need to comply with the standard 24-month consecutive, or 30-month interpolated absence rules (per 36 months).
  • Valid for five years, with unlimited renewal; permanent residence cards must be updated every five years or when personal details change.
  • Proof of Portuguese language knowledge is required.
  • Fee structure:
    • First issuance: €8,463.40
    • Renewal: €4,326.30

Permanent residence provides long-term stability even if citizenship timelines change. It also allows dependents to gain independence from the main investor and ensures legal residence regardless of future legislative changes in the Foreigners Law. Importantly, the investment does not need to be maintained until citizenship is granted; the PR is tied to residency and investment rules, not the nationality application.

  • Investors’ expectation of applying for citizenship after five years is not a legally guaranteed right; it cannot be enforced in court merely based on a previous promise or standard practice.
  • Unlike the Foreigners Law, there is no indication that the Nationality Law will include carve-outs for Golden Visa investors.

Final Thoughts

The legislative process is ongoing, and the final Foreigners Law and Nationality Law may differ from the current drafts. For now, investors can be reassured that:

  • The Golden Visa remains a secure and valuable option for obtaining residency in Portugal.
  • Citizenship is currently available after five years, with language requirements, for those who have ongoing citizenship cases.
  • Permanent Residence offers a stable, long-term alternative, with unlimited renewals, no absence limits, and protection of dependents, even if citizenship timelines are extended.