Portugal’s president signed a revised nationality law on 3 May, extending the residency period required for citizenship. The change does not affect the Golden Visa residency‑by‑investment (RBI) scheme, which continues to operate under the same investment and stay conditions.
What changed in the nationality law
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Citizenship eligibility:
- For most foreign nationals the required period of residence before applying for Portuguese citizenship increased from 5 years to 10 years.
- For nationals of the EU and CPLP (Community of Portuguese‑Speaking Countries) the period is 7 years.
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Residency clock: The clock now starts from the date a residence permit is issued, rather than from the date of the residency application. This adjustment matters because processing delays at the Agency for Integration, Migration and Asylum (AIMA) have created long gaps between application and permit issuance.
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Pending applications: Applicants who had already completed the five‑year period and submitted a citizenship request before the law took effect are protected; the law’s wording and the president’s statements suggest that such cases should not be disadvantaged, although the statements are not legally binding.
Impact on the Golden Visa program
The Golden Visa remains a residency‑by‑investment program with the following unchanged parameters:
- Minimum investment of €500,000 in an eligible Portuguese fund.
- Residence permit for the investor and family members, granting Schengen‑wide travel and the right to live, work, and study in Portugal.
- Renewal requires an average stay of seven days per year (approximately 14 days every two years).
Because the citizenship timeline is now longer, investors can still obtain permanent residency after five years of holding the first residence card. Permanent residency carries no expiration, no further investment requirement, and no minimum stay obligation. The investment horizon therefore remains five years, after which the investor may retain permanent residency and decide whether to pursue citizenship.
Is the program still attractive?
Portugal’s Golden Visa continues to be the only European residency scheme that offers a path to citizenship without a mandatory physical relocation. The required physical presence is limited to 14 days every two years, which over a ten‑year period totals fewer than 70 days. This combination of low stay requirements, full Schengen mobility, family inclusion, and eventual citizenship eligibility remains unchanged, even though the citizenship timeline is longer.
Fund options and performance
One of the funds commonly used for the Golden Visa is the Ando Europe Fund, advised by Optylon Krea and managed by Stag Fund Management. Key characteristics:
- Sector focus: Hospitality, primarily through the Ando Living serviced‑apartment brand.
- Geographic allocation: At least 60 % of the fund’s assets are invested in Portugal; the remaining 40 % may be allocated internationally.
- Structure: Debt‑type instrument targeting a 6–8 % annual return, backed by operating companies and long‑term lease/management contracts that generate revenue.
- Regulation: Supervised by the Portuguese securities market commission (CMVM).
- Investment minimum: €500,000, with a five‑year maturity that aligns with the permanent‑residency eligibility period.
The Ando Living Group’s property‑management arm oversees over 2,000 apartments across Portugal, having served more than 500,000 guests and processed over 175,000 bookings. Reported figures include:
- €85 million generated for property owners through its yield‑management system.
- Guest satisfaction above 94 %.
- Gross booking value of €50 million in 2024, representing a 94 % revenue growth since 2022.
Optylon Krea reports having structured €200 million in equity across five CMVM‑regulated funds, serving over 800 investors from 42 countries, with a combined development value exceeding €2 billion across 38 projects. The group aims to expand to 5,000 units in seven countries by 2028, with a footprint that includes Lisbon, Istanbul, Madrid, Paris, London, and Athens.
Practical considerations for investors
- Clarify the distinction between the nationality law (citizenship) and the Golden Visa (residency).
- Assess timing: The five‑year residency milestone still leads to permanent residency; the extended citizenship timeline does not affect the investment horizon.
- Monitor processing times: Delays in issuing residence permits can affect the start of the residency clock.
- Choose a fund that aligns with risk tolerance and expected returns, keeping in mind that the fund’s performance is separate from the residency qualification.
Investors should stay informed through reliable legal and financial sources, rather than relying solely on headline summaries, to navigate the revised legal framework and make decisions aligned with their personal and financial goals.
Source article: www.imidaily.com
