Portugal has been the go-to destination for investors and families wanting accessible European residency.
However, this could change. This is following the collapse of the Socialist government in March and the legislative election on May 18th. Now, the centre-right AD is taking the lead.
Without question, the program will continue. However, it will change. We expect reforms around eligibility, oversight, and naturalisation timelines.
Election Results
After the elections, the centre-right AD (Aliança Democrática) had emerged as the leading party, getting a 33% national vote. They gained the most seats in parliament, but fell short of a majority.
Meanwhile, the far-right Chega party and the centre-left Socialist Party (PS) were neck and neck, getting around 22-23% of the votes. After them was Iniciativa Liberal (IL), which only secured 5.4% of votes.
That means, around 66% of Portugal’s parliament is now controlled by the right or centre-right parties. For those interested in the Golden Visa Program, this signals potentially massive changes.
Golden Visa Stability and What May Change
Despite political changes, Portugal will remain committed to investment-based migration. However, things will change. The Golden Visa Program will enter its new “phase”.
1. Golden Visa Will Stay – But with More Oversight
The Golden Visa Program will remain Portugal’s key strategy for attracting foreign investment.
However, investors should be prepared for a more regulated environment. Legislative and administrative adjustments are expected to improve the transparency, due diligence, and compliance of the program.
Some areas that they may become stricter on are background checks, documentation requirements, or certain investment vehicles.
2. New Investment Routes May Be Added
Alongside the above, the new governments could consider new investment routes.
One proposal that’s being discussed is for investment in a social housing fund. This reflects on the growing need for socially responsible capital deployment.
This new route could appeal to a lot of investors. It’ll also help address domestic housing challenges in the country.
However, at the moment, we’re unsure of the requirements. If the Golden Visa Program gets more regulated, the eligibility requirements for this investment type could be much greater than normal.
3. Naturalisation Period May Increase
Currently, Golden Visa holders can apply for Portuguese citizenship after five years of legal residency. Compared to other Golden Visa Programs, this is a short and simple pathway.
However, proposed reforms may increase this. Instead of five years, it could expand to seven or maybe even ten years.
Generally, this will only affect passive investors. These are investors who don’t want to completely reside in Portugal. This won’t have much impact for those wanting to move to Portugal full-time.
4. Immigration Agency Reform (AIMA)
We also expect Portugal’s immigration authority, AIMA (Agência para a Imigração e Mobilidade), to be reconstructed.
In the last few years, they’ve had an enormous problem with inefficiencies and application backlog. Therefore, we assume the agency will be focusing on:
- Accelerating case processing.
- Digital transformation, like automated pre-screening.
- Performance metric optimisation to increase productivity.
- Reducing discretionary decision-making, resulting in more predictable outcomes.
These improvements are meant to restore confidence in the system. It should also reduce the bureaucratic delays that have been frustrating Golden Visa applicants for years.
5. Citizenship Law May Tighten
Lastly, amendments to Portugal’s Nationality Law (Law 37/81) may be on the horizon.
Authorities are expected to crack down on requirements involving cultural integration and language proficiency.
Additionally, the legal principle of an “effective connection to Portugal” may be more clearly defined and enforced.
Because of this, applicants will need to have a stronger tie to the country. This could mean more regular visits, increased economic activity, and property ownership in Portugal.
How Should Global Investors Prepare for These Changes?
Right now, timing is everything. No legislative reforms have been formally passed yet, so the Golden Visa Program remains the same.
Plus, Portugal is well-known for grandfathering clauses. Therefore, if you apply now, you’ll be put into the current rules of the Golden Visa Program, not the new ones.
As a result, investors should:
- Apply Now: Rules haven’t changed yet, so the window to qualify under the current rules is still open.
- Plan for the Long Term: If you don’t apply now, think long-term. The path to citizenship will likely increase in the future.
- Get Legal Guidance: Work with professionals who monitor these changes and who can recommend a future-proof strategy.
Start Your Golden Visa Application Now
Portugal continues to be the best Golden Visa Program in Europe. However, the clock is ticking, and things can change drastically. Because of this, if you are considering this citizenship-by-investment program, best practice would be to request further information now.
Over the last 15 years, we’ve helped 300+ investors with their visa applications and have received a 100% success rate. See how we can help with a free consultation.
You can also register for the upcoming webinar – “Portugal Golden Visa – Everything you need to know”
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