Investors Scramble as Portugal’s Golden Visa Faces Court Review
Dec 19, 2025
Category: Golden Visa News Portugal
Portugal’s Golden Visa program is on pause as its parliament-approved citizenship reforms face a Constitutional Court challenge.
Wealthy investors, who poured billions into the country, are fighting changes that could stretch the path to a European Union (EU) passport from five years to over a decade.
Court fight over fast-track citizenship
The controversy stems from amendments to Portugal’s nationality law, approved by parliament on October 28, 2025. The key changes would extend the general residency requirement for citizenship from five years to 10 years for most non-EU nationals.
The amendments would also reset the clock so the count only starts when a residence permit is physically issued, not when the application is submitted. With permits often taking over two years to process, the total wait could stretch beyond 12 years.
Immediately after the vote, a group of lawmakers from the Socialist Party petitioned the Constitutional Court for a preventive review, a rare move that automatically suspends the law.
An analysis from Portugal Resident noted the political divide, stating that the review “will allow the Constitutional Court to weigh these competing perspectives.”
Supporters of the longer timeline argued that it encourages deeper integration and aligns Portugal with neighbors like Spain. Opponents called it an unfair shift for those who invested based on the original rules.
Portugal “broke a promise”
The heart of the legal challenge is a claim of broken trust. Golden Visa holders and applicants argued that the government is reneging on a clear promise that attracted their investment.
They submitted a formal amicus curiae brief to the Constitutional Court on December 3.
“The investors are not asking for preferential treatment,” said Madalena Monteiro, founder of Liberty Legal, who filed the brief. “They simply expect to be treated fairly and not be placed in a situation where new rules are applied retroactively.”
The brief points to a recent parliamentary admission from Portugal’s Minister of the Presidency as evidence of unfair treatment.
During budget debates in November, the minister stated that Golden Visa applications were deliberately placed at the end of processing queues due to “social equity,” to prioritize “the poorest, the most vulnerable” over “the richest.”
Investors argued that this intentional delay already stretched their timelines. Now, the proposed law would punish them further for government slowdowns.
The brief states that “making citizens’ legal status contingent on administrative timing violates legal certainty,” citing prior court rulings.
Life plans built on a five-year promise
The court filing paints a picture of families who uprooted their lives based on Portugal’s advertised pathway.
Investors “committed their life savings,” relocated spouses and children, and enrolled kids in Portuguese schools, all with the understanding that citizenship was a five-year goal.
A major point of contention is the repeal of a key protection in the current law. Presently, the residency clock starts ticking from the date of application submission, as long as the permit is eventually approved.
The new law would start the count only when the permit is physically issued.
For someone whose application languished in the reported backlog, this change could add several extra years to their journey.
The brief argued that this creates an arbitrary system where two people who apply on the same day could have wildly different citizenship dates based purely on bureaucratic luck, violating constitutional guarantees of equality.
The financial stakes are enormous. Official data cited in the brief shows that the Golden Visa program has funneled over €9 billion in foreign direct investment into Portugal since 2012.
“The Golden Visa programme has been a crucial driver of Portugal’s economic growth,” Monteiro said.
A global “Plan B” under scrutiny
The legal battle unfolds against a backdrop of surging global interest in Portugal’s program. Online search data shows a 189.8% year-on-year increase in interest for the “Portugal Golden Visa,” according to CEOWORLD magazine.
For wealthy individuals and entrepreneurs, it has become a top “Plan B” for geographic diversification and EU access.
The program’s appeal lies in its flexibility. A €500,000 investment into qualifying funds—the most popular option since real estate was removed in 2023—grants residency.
Holders only need to spend an average of seven days per year in Portugal to maintain it.
Demand persists even as other European nations scale back similar schemes under EU pressure, because Portugal’s program is residency-first and citizenship-later, which Brussels views more favorably.
A two-tier system for entering Europe
The outcome of this case will ripple out to affect how all types of travelers and migrants approach the EU.
For short-term visitors from visa-exempt countries like the U.S. or U.K., travel is set to change with the upcoming European Travel Information and Authorisation System (ETIAS).
Launching in the last quarter of 2026, ETIAS will require pre-travel authorization for short stays.
For long-term migrants and investors, the Portuguese case highlights a growing divide. On one side are streamlined digital systems for tourists, like ETIAS and the new automated Entry/Exit System (EES) which records biometrics at the border.
On the other are increasingly complex and elongated pathways for those seeking permanent ties. A ruling that extends Portugal’s timeline would cement that reality, making investment migration a much longer commitment.
EU’s tightening embrace
Portugal’s internal debate mirrors a continent-wide shift. The European Commission has consistently pressured member states to phase out direct “citizenship-by-investment” schemes, arguing that they pose security and integrity risks.
By focusing on residency first, Portugal’s Golden Visa has survived this pressure.
But the proposed longer path to citizenship is a political compromise. It responds to EU concerns about æpassport shoppingÆ while trying to keep investment dollars flowing.
If the court upholds the changes, it signals that even residency-for-investment programs must create a high barrier to full EU citizenship. This could become a blueprint for other nations balancing EU relations with investor appeal.
What the court decides next
Ultimately, this legal challenge centers on fairness and trust, and its outcome will redefine Portugal’s appeal to global investors.
The Constitutional Court’s ruling will determine if thousands of families face a decade-long wait for citizenship or if their original five-year is preserved.
For high-net-worth individuals seeking a stable “Plan B” in Europe, Portugal’s future hinges on this decision.