Proposed Changes to Portuguese Citizenship: Clarity and Opportunities for Investors

Context and Status of the Proposal

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In June 2025, the Portuguese government presented Draft Law No. 1/XVII/1st, aimed at updating the requirements for acquiring Portuguese nationality. The initiative seeks to strengthen the effective connection between applicants and the country and align with other European countries that already require longer residency periods and stricter integration tests.

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It’s important to emphasize that this proposal is not yet law. For it to become official, it must:

• Be debated and approved in a first parliamentary vote
• Be reviewed by a parliamentary committee, where amendments can be introduced
• Undergo a final vote
• Be signed into law by the President of the Republic, who can veto it or request a constitutional review

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This process could take several months, meaning the final version of the law may differ from the current draft. According to legal sources, approval is not expected before September or October 2025.

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In the meantime, all current applications are still being processed under the existing rules, and there is strong expectation that non-retroactivity will be preserved for those who apply before the new law takes effect.

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Main Proposed Changes

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The draft introduces several key changes to the naturalization requirements:

• The minimum legal residency period before applying for citizenship would increase from 5 to 10 years.
• The count would begin from the issuance of the first residence permit, not from the application date or other temporary visas.
• New integration requirements. The proposal includes both existing and new requirements for citizenship eligibility:
  
  • Basic knowledge of the Portuguese language. (existing)‍
  • NEW: Understanding of Portuguese culture, the Constitution, and the democratic system. ‍
  • NEW: A formal declaration of commitment to the values of the rule of law.
  • Individuals convicted of crimes punishable by prison under Portuguese law — regardless of sentence length — will be ineligible to apply for citizenship. (existing)

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While the draft refers to all types of residency, it is expected that specific rules for the Golden Visa will be clarified during the legislative process.

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The Opportunity of Non-Retroactivity

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One of the most significant aspects is that the proposal includes a non-retroactivity principle. This means that if you submit your citizenship application before the law is officially approved, you may still qualify under the current 5-year rule.

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For this reason, many advisors recommend starting the process as soon as possible, especially if you already meet the requirements or are close to doing so.

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Additionally, although approval is expected in the coming months, there is no confirmed date for when the law would take effect.

Expectations for the Golden Visa Regime

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It is worth noting that the government has publicly stated its intention to make the Golden Visa more attractive in 2025. This suggests that differentiated conditions—or even a special regime—may be created for this category of investors.

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Although there is no official confirmation yet, this outlook reinforces the idea that Portugal will remain a competitive and attractive destination compared to other European residency programs.

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What to Do If You Plan to Apply for Citizenship

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If you are considering starting your application, we recommend:

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• Consult a legal advisor for the best strategy to submit your application before any changes take effect. We can put you in touch with an advisor. Get in touch at rita@vida-cap.com or whatsapp +351914368116.

• Stay informed about the progress of the proposal in Parliament and any potential amendments.

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Remember that even if the timeline is extended to 10 years, Portugal remains the only European country that offers a path to citizenship without mandatory relocation, maintaining its position as the most flexible route to European citizenship.

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Next Steps and Recommendations

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At VIDA Capital, we are closely monitoring every phase of the legislative process with our legal advisors, committed to keeping you informed and protecting your interests.

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If you would like to understand how these changes may affect your specific situation or need support with your application, our team is here to assist you with clarity and peace of mind.