Portugal’s much-celebrated Golden Visa program has undergone a major policy change that is reshaping its appeal to international investors and expats. The Portuguese government has voted to extend the residency requirement for citizenship from five to ten years, effectively doubling the time applicants must reside in the country before becoming eligible for nationality.
This move impacts not only those under the Portugal Golden Visa scheme but also holders of digital nomad and D7 visas. For thousands of Americans and other global investors considering Portugal as a gateway to European citizenship, this decision marks a pivotal turning point.
Why Portugal Changed Its Citizenship Timeline
For years, Portugal stood out as one of Europe’s most attractive destinations for investors seeking residency and eventual EU citizenship. The combination of a mild climate, political stability, affordable living costs, and a relatively short five-year citizenship path made it highly competitive compared to neighboring countries.
However, the surge in foreign residents—Portugal’s foreign population nearly tripled since 2019, reaching 1.6 million people—has led to growing domestic pressure. Critics argue that the Golden Visa has inflated property prices and strained public services, making it harder for locals to afford housing or access key amenities.
In response, the Portuguese government decided to tighten the rules, aligning its citizenship timeline more closely with Spain’s 10-year requirement.
Key Changes Under the New Portugal Golden Visa Law
The newly approved legislation introduces several crucial modifications:
- Residency Requirement Extended to 10 Years
- Applicants must now reside in Portugal for ten years before they can apply for citizenship, up from the previous five.
- EU citizens and nationals from Portuguese-speaking countries will face a slightly shorter seven-year requirement.
- Start of Residency Clock Resets
- The countdown to citizenship will begin only once a residence permit is officially granted, not when the application is submitted.
- Given that the residence permit process typically takes two to three years, the effective wait time for many applicants could reach 12 to 13 years.
- Legal Residency Periods Counted Collectively
- On a more positive note, the new law will count all legal periods of residence, whether continuous or interrupted. This flexibility benefits those who have lived in Portugal under multiple visa categories.
- Transitional Arrangements
- Applicants whose citizenship applications are already in progress will still be assessed under the old five-year rule.
- However, residents who haven’t yet started their citizenship process must comply with the new timelines.
Economic and Investment Impact
Industry experts warn that the reform could have substantial consequences for Portugal’s economy.
- Around €4.6 billion in committed capital may exit the Portuguese economy.
- Even conservative forecasts suggest a loss of €1 to €2 billion in high-value foreign direct investment.
- More than 70% of potential Golden Visa investors are reportedly reconsidering their applications, each representing investments exceeding €500,000.
The ripple effects could impact not only real estate and investment funds but also secondary sectors such as legal services, education, finance, and property management—industries that have thrived thanks to the influx of foreign investors.
Why the Portugal Golden Visa Still Holds Value
Despite the new hurdles, the Portugal Golden Visa program remains active, unlike in Spain and Malta, where similar schemes have been discontinued. Investors can still obtain residency by investing €500,000 or more in qualifying assets, funds, or projects.
Holders of the visa and their families receive a renewable residency card every two years, granting them:
- The right to live and work in Portugal.
- Visa-free travel within the Schengen Area.
- Access to Portugal’s public education and healthcare systems.
Even though the path to citizenship is now longer, the program continues to provide a secure foothold in Europe for high-net-worth individuals seeking mobility, safety, and quality of life.
Alternatives for Americans and Other Expats
The new 10-year rule may push many prospective residents to consider other visa types or even alternative countries. Portugal still offers three strong residency options:
- D7 Visa (Passive Income Visa)
Ideal for retirees or financially independent individuals with stable income from pensions, investments, or rental properties. - Digital Nomad Visa
Designed for remote workers and freelancers, this visa allows individuals to live in Portugal while earning income from abroad. - Golden Visa Program
The residency-by-investment route remains available, though its long-term appeal depends on the investor’s goals—whether for lifestyle, mobility, or eventual citizenship.
Meanwhile, neighboring countries such as Greece, Cyprus, and the UAE are emerging as competitive alternatives for investors seeking faster or more flexible residency paths.
Broader Implications for Expats in Portugal
For existing residents and those mid-way through the process, the change introduces uncertainty and potential frustration. For new applicants, it underscores the importance of long-term planning and expert legal guidance.
While the longer citizenship timeline may deter purely citizenship-driven investors, Portugal continues to offer a high standard of living, safety, and access to the European market. For those seeking a permanent European base rather than a quick passport, it remains one of the most stable and desirable destinations in the region.
Final Thoughts
Portugal’s decision to extend its citizenship requirement from five to ten years represents a turning point in its immigration and investment policy. It rebalances the nation’s priorities—shifting from rapid naturalization toward sustainable integration.
Although the Portugal Golden Visa will likely see reduced demand, the country’s enduring appeal as a safe, affordable, and welcoming destination ensures that it will remain on the map for discerning expats.
For potential applicants, the message is clear: Portugal’s door is still open, but patience and strategic planning have become more essential than ever.
