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The Algarve, Portugal—the government voted to extend the citizenship requirement to ten years of residency, from five. In a blow to the many people hoping to make Portugal their home and apply for European citizenship through the Portugal golden visa program or other visa routes, the Portuguese government voted to extend the time required to be in the country to 10 years before applications for nationality will be accepted. Portugal had been very attractive to expats keen on making Europe their home because previously, Portugal only required people to be in the country for five years before they could apply for nationality. For EU citizens and those in the community of Portuguese-language countries (Brazil, Angola, Cabo Verde, Guinea-Bissau, Equatorial Guinea, Mozambique, São Tomé and Principe, and Timor-Leste), the rule will be increased to seven years instead of ten. For applications in process where citizenship is pending, the old rules will apply, but residents who haven't yet initiated citizenship will have to conform to the new seven- or ten-year rule. This is crucial to holders of golden or other types of visas; if you were planning to apply at the end of five years for citizenship, you would now need to wait another five. The vote also resets the citizenship timeline for new applicants; the clock starts ticking only when authorities grant a residence permit, not at the point where people submit their applications for residency. In reality, this means it might add another two to three years to the process, because that's typically how long it takes to obtain residency in the country. For most foreigners, golden visa investors, and people who have come on a digital nomad visa, the naturalization timeline effectively becomes about 9 to 13 years. There's also a new counting rule, which is a little more favorable. All periods of legal residence in Portugal will be counted towards time spent in the country, continuous or interrupted. Jeremy Savory, CEO and founder of Savory and Partners, a global wealth mobility company, says, “the impact of this decision has far-reaching implications. The sheer number of candidates who are in the process of applying for golden visas in Portugal means that the unwinding of some of this will take a long time. Those at the start of their journey will immediately look at other jurisdictions, while those further down the line will be weighing up whether that time and financial commitment is worthwhile. Unfortunately, wherever they sit in that timeline, for many, the decision taken by the Portuguese government will leave a bad taste and question future investment into the country.” For Savory and Partners, the potential loss of capital cannot be underestimated. It estimates that as much as €4.6 billion of committed capital could leave Portugal's economy, and even with a conservative estimate, over €1-2 billion in high-value foreign direct investment could disappear. This figure is based on a survey it conducted, where over 70% of its potential golden visa investors were reconsidering their applications, each of whom would have brought a qualifying investment of over $525,000 (€500,000) into the country. Obviously, the loss affects fund managers and real estate developers, but also the secondary sectors that have benefited from the huge inflow of golden visa holders, many of whom have been American, such as in law, property, education, and finance. Many potential applicants are already considering alternative jurisdictions such as Cyprus, Spain, the UAE, the Caribbean, and Greece. Savory adds that, “Portugal’s residency program once symbolised efficiency and innovation in Europe. Today, it risks becoming a cautionary tale on how administrative inertia can erode both confidence and capital.” The country has received almost €9 billion in investment through its golden visa program, where applicants have been enticed by the climate, political stability, a low cost of living in comparison to the U.S., and efficient education, public transport, and health infrastructure. It's not clear what impact this will have long-term on people looking to make Portugal and, therefore, Europe their long-term home. Portugal still has three very attractive visa options for Americans looking to move to Europe, though: The D7 visa has a very low passive income requirement, making it ideal for American retirees, who could even rent out their property in the U.S. and qualify. Portugal offers a digital nomad visa, which is ideal for remote workers and freelancers. And while many EU countries, like Spain and Malta, have ended their golden visa programs, Portugal’s remains in place—one of the few in Europe that does. The change in the law would bring Portugal in line with Spain, which also requires someone to be resident for 10 years before they can apply for nationality. However, Portugal automatically recognises dual citizenship, which Spain does not. Portugal is one of the most favored residency-by-investment programs globally. In exchange for an investment of $525,000 (€500,000), holders and their families can obtain a residency card, renewable every two years, giving them the right to live in Portugal and work and travel freely across the EU and Schengen countries. Critics argue that citizenship has been too easy for foreign nationals to obtain and has helped to skew the economy, making it harder for locals to access public services and afford housing. Since 2019, the foreign population in Portugal has almost tripled to 1.6 million, which amounts to approximately 15% of the total population, as per Portugal’s Agency for Integration, Migration and Asylum (AIMA). Another final vote is planned on October 28th, but analysts believe that it will pass given the results of this vote. It will then go to the president to be signed into law, or he might send it to a constitutional court review. What's clear is that Portugal’s decision to extend its citizenship timeline marks a pivotal shift and while the country remains a top destination for expats, including Portugal golden visa applicants, the longer residency requirement may deter some applicants. MORE FROM FORBES ForbesPortugal Golden Visa: Americans Benefit From Key Court Ruling In 2025By Alex LedsomForbes5 Trending Retirement And Golden Visa Destinations For AmericansBy Alex LedsomForbesWhat It Means To Be Wealthy In PortugalBy Alex Ledsom Editorial StandardsReprints & Permissions
