Portugal to Update Citizenship Rule With 10-Year Minimum Residency

Latest Updates to Portugal’s Citizenship Law in 2025

The Portuguese Parliament has approved the new Citizenship Law, extending the required period of residence to qualify for citizenship from five years to ten years for most applicants. This is a significant shift in Portugal’s nationality framework. However, it is vital to understand that the law is not yet in effect, and the reform affects the path to citizenship, not the right to residency. For high-net-worth individuals, entrepreneurs, digital nomads, and IT professionals, this change requires immediate strategic review of their Tax Migration and second residency plans.

Key Changes Approved by Parliament

The law introduces several major changes to the naturalization process. The residency requirement for eligibility for citizenship now increases to 10 years for most applicants. For citizens of Portuguese-speaking countries (CPLP) and EU nationals, the requirement is 7 years. Critically, the qualifying period will now start from the date of issuance of the first residence card, not from the date of the initial application.

Additionally, new requirements for naturalization are now included. Applicants must pass a new civic knowledge test covering Portuguese culture, rights, duties, and history. They must also provide a formal declaration of adherence to democratic principles and meet a lower threshold for a clean criminal record. Furthermore, the Sephardic Jewish ancestry route for nationality will be terminated.

The Law Is Not Yet in Effect

Although Parliament approved the law, the legislative process is not complete. The law will now be sent to the President of the Republic, who has up to 20 days to approve it, veto it, or request a constitutional review from the Constitutional Court. If the President sends the law to the Constitutional Court, which many legal experts consider likely, the Court has 25 days to issue a decision. Until the law is formally enacted and published, the current rules remain in place.

The Golden Visa (ARI) is a residency program, and the new reform does not affect residency rights. The program itself remains unchanged. Holders retain the ability to renew their permits, travel within the Schengen Area, and reunite with family. However, access to citizenship through the Golden Visa will now follow the new, extended timeline, depending on when the individual applies for citizenship and the date their first residence card was issued.

If your citizenship application was submitted before the new law came into force and the file is complete, it should continue under the current 5-year rules. This position is based on public government statements and past legal precedent. However, if your application is filed after the new law takes effect, or if it is deemed incomplete, it may fall under the new 10-year rule. The lack of a formal transitional clause has raised concerns, but legal experts generally expect that the new rules will only apply after the law formally enters into force.

Portugal Permanent Residency

The good news is that the option for Permanent Residency (PR) remains available and is now more significant than ever. After five years of legal residence, Golden Visa holders can apply for PR in Portugal. The PR card is valid for five years, is renewable, and importantly, does not require full-time residence in Portugal. This means that after five years, investors can secure their residency status, sell their qualifying investment if they choose, and continue progressing toward citizenship under the new 10-year rule if they desire.

If the law enters into force as approved, new applicants will need to plan for a longer commitment. You will need to complete 10 years of legal residence and meet the new language, civic, and conduct requirements. This longer timeline makes Portugal’s residency program less focused on a quick passport and more focused on long-term tax residency and lifestyle benefits. Proof of “real ties” and integration is expected to become a stronger factor in the process.

The Benefits of Portuguese Residency & Citizenship

Obtaining residency in Portugal through this fund provides numerous advantages beyond just the investment itself. It grants you the right to live, work, and study in Portugal, and crucially, offers visa-free travel throughout the Schengen Area, encompassing 29 European countries. This enhanced global mobility is a significant benefit for high-net-worth individuals with international business or travel interests.

After five years of holding your Portuguese residency permit through the Golden Visa program, you become eligible to apply for Portuguese citizenship. A Portuguese passport is a powerful document, providing visa-free access to a vast number of countries worldwide and the right to live, work, and study anywhere within the European Union. This makes the Portuguese Golden Visa a highly attractive option for those seeking a stronger second passport and broader global freedom.

Tax Advantages for Residents in Portugal

While the Non-Habitual Resident (NHR) tax scheme has closed, Portugal still offers a competitive tax system for those who become tax residents. Understanding these tax implications is crucial for optimizing your global tax strategy. The ability to manage your tax burden effectively is a key component of wealth preservation and growth, making Portugal a strategic choice for tax migration.

Portugal’s Enduring Lifestyle Appeal

Even with potential policy shifts, Portugal continues to offer an enviable lifestyle that appeals to high-net-worth individuals, entrepreneurs, and remote professionals. The country is celebrated for its natural beauty, rich historical background, and mild climate. Its laid-back atmosphere and emphasis on a relaxed daily pace provide a welcome contrast to fast-paced professional environments. The welcoming nature of locals and the increasing number of English speakers in major cities contribute to an overall feeling of ease and comfort for international residents.

Strategic EU Access and Global Mobility

For those focused on global mobility and strategic access, Portugal’s residency offers a valuable starting point. Being a Portuguese resident means you can enjoy visa-free travel throughout the EU Schengen Area, facilitating business dealings and leisure travel across 29 European countries. This access to a major economic bloc, combined with Portugal’s strong residency programs, positions it as a significant option for individuals seeking to expand their international presence and optimize their global tax strategy.

Understanding the complex changes to the Portuguese Nationality Law and how they affect your Golden Visa investment requires expert guidance. We can provide you with personalized support to assess your current standing, manage your Tax Structure, and ensure you meet the evolving residency requirements. Our services are designed to help high-net-worth individuals make informed decisions about tax optimization, second residency, and global mobility.

Is Portugal the Best Place for Your Global Strategy?

Portugal continues to address several key needs for international residents, it offers the chance to gain EU residency with a path to citizenship in five years, and enjoy a safe, high-quality lifestyle with access to the entire Schengen zone. For many, that combination remains compelling. Portugal’s appeal however extends far beyond its tax advantages. The country boasts a high quality of life, with a rich culture, stunning natural beauty, and a welcoming atmosphere. From the vibrant streets of Lisbon to the picturesque Algarve coastline, Portugal offers a lifestyle that appeals to a wide range of tastes and preferences. The country is also known for its safety, excellent healthcare system, and relatively low cost of living compared to other Western European nations.

Why Choose RELOC8 ONLINE?

Understanding the complexities of the Portugal Golden Income Fund and how it aligns with your financial and relocation goals requires specialized knowledge. We can provide you with expert guidance to assess your eligibility for the Golden Visa, understand the fund’s structure, and manage the entire application process. Our services are designed to help high-net-worth individuals make informed decisions about tax migration, second residency, and global mobility.

If you are a high-net-worth individual, entrepreneur, or investor, this reform is a clear signal that timing is crucial. We can help you build custom strategies to secure your residency rights under the best possible conditions. Optimize your tax strategy and redefine your international presence. Start Your Journey Today. Right Place, Right Tax, Right Now. Book a Consultation to explore how you can manage these changes in Portugal.

Don’t miss out on this opportunity! Contact us today for a consultation session and start your journey towards a brighter future in Portugal.

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