Portugal Accelerates Citizenship Process For Golden Visa Investors With Amended Law

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Dec 21, 2023
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Portugal has recently made a significant change to its citizenship laws, a move that is especially favorable for golden visa investors. The country's parliament approved an amendment on January 5, which shortens the time required to apply for Portuguese nationality.

Under the new law, the five-year residency requirement for citizenship eligibility now begins from the date of the residency application, rather than from when residency is granted, as was previously the case. Sara Sousa Rebolo, a partner at Prime Legal, highlighted in a press release that this change is particularly beneficial for those who experienced delays due to the pandemic, the influx of Ukrainian refugees, increased application volumes, and strikes in administrative services.

The amendment aims to mitigate the impact of these delays on applicants by adopting an automatic administrative measure. Before this change, the time between applying for residency and approval could, in extreme cases, stretch up to three years, pushing back the eligibility for citizenship application. The common advice was to expect citizenship eligibility after seven years, contrary to the five-year legal requirement.

This update is expected to benefit both current and future golden visa holders. For instance, someone who received residency two years after applying will now be eligible for citizenship two years earlier than previously anticipated.

However, Sousa Rebolo also points out potential ambiguities in the law's language. The use of 'residence title' instead of 'residence permit' in the wording could lead to different interpretations, possibly affecting the start date for counting the five-year period.

For golden visa holders, it's expected that citizenship eligibility will begin five years after the payment of the analysis fee, a part of the golden visa application. This interpretation aligns with the amendment's intent to rectify administrative delays.

Additional changes in the law include citizenship restrictions for individuals linked to terrorist or criminal activities and those sanctioned by the EU or UN. Their citizenship applications will be suspended until sanctions are lifted.

As with any new law in Portugal, this amendment awaits the President's approval, which could take up to 90 days.

Pros:

The amendment accelerates the path to citizenship for golden visa investors, reducing wait times.

It acknowledges and compensates for past delays in the residency approval process.

The change applies to both existing golden visa holders and new applicants.

Cons:

The distinction between 'residence title' and 'residence permit' could lead to varying interpretations, potentially impacting the start of the five-year period.

The law imposes tighter restrictions on individuals involved in criminal or terrorist activities, which could complicate the application process for some.

The law is not yet in effect, pending the President's approval, creating a period of uncertainty for applicants.