Portugal’s parliament has approved a new nationality bill that doubles the standard naturalisation period from five to ten years. In addition to the headline change, three less‑publicised provisions could significantly affect legal residents, foreign investors, and children born in Portugal.
Legislative context
- The bill passed 152‑64, meeting the two‑thirds majority required for organic legislation.
- It now awaits the signature of President António José Seguro, who can sign, veto, or refer the law to the Constitutional Court.
- The coalition behind the bill consists of the centre‑right PSD and the far‑right Chega party, giving it enough votes to override most objections.
Extension of the naturalisation period
- Standard route: Residency requirement rises from five to ten years for most applicants.
- Fast‑track (7‑year) route: Available only to citizens of EU member states and the Community of Portuguese‑Speaking Countries (Angola, Brazil, Cape Verde, Equatorial Guinea, Guinea‑Bissau, Mozambique, Portugal, São Tomé and Príncipe, Timor‑Leste).
- The change does not introduce new integration tests; it merely delays eligibility.
Modification of ius soli rules
- Under the previous law, a child born in Portugal to foreign parents automatically acquired citizenship if at least one parent had been a legal resident for at least one year (sometimes less).
- The new law raises that residency threshold to five years.
- Example: Two siblings born in the same hospital— the older, born 18 months after the parents arrived, qualifies for citizenship at birth; the younger, born three years later when the parents have been resident for 4½ years, does not.
- No provision exists to automatically extend citizenship to subsequent children once one child has qualified, creating a disparity within the same family.
Change to the residency‑clock calculation
- Previously, the residency clock for naturalisation started on the date the applicant filed their residence permit application.
- A 2024 amendment allowed the clock to run during the often‑lengthy processing period (up to four years).
- The new law reverts to counting only from the date the permit is actually issued, which can be months or years after filing.
- Consequently, the effective waiting time may extend by the same length as the administrative backlog, potentially exceeding the nominal ten‑year period.
Absence of transitional or grandfathering measures
- The law contains no safeguards for individuals who moved to Portugal under the former five‑year rule.
- Thousands of residents who have already paid taxes, invested, enrolled children in schools, and bought property could see their expected five‑year path extended to ten years.
- The Socialist Party reportedly proposed transitional provisions, but these were omitted in the final text.
Proposed alternative framework (as suggested by legal analyst David Bonelli)
- Permanent residency after two years for temporary residents who pass an A2‑level Portuguese language exam, a civics/history test, and demonstrate financial self‑sufficiency.
- Golden‑Visa holders would receive immediate permanent residency, with a two‑year window to meet the same language and civics requirements; failure would reset the clock.
- Naturalisation would then occur after five years of permanent residency, conditional on a B1‑level language certificate and a refresher civics test.
- This model aims to front‑load integration requirements while keeping the total time to citizenship comparable to the current proposal.
Practical implications for investors and prospective residents
- Risk of retroactive rule changes: Existing investors who committed funds based on the five‑year timeline may face a longer wait without compensation.
- Uncertainty about final approval: The president’s decision could alter the law’s implementation; a veto or referral to the Constitutional Court would delay its effect.
- Alternative pathways: With Portugal’s fast‑track to EU citizenship becoming less attractive, investors may consider other jurisdictions offering citizenship‑by‑investment programmes (e.g., Turkey’s recent 20‑year tax break for foreign talent).
Key take‑aways
- The official naturalisation period is now ten years, but processing delays could push the effective wait well beyond that.
- Children born to foreign parents must now meet a five‑year parental residency requirement, breaking the previous automatic‑citizenship rule.
- No transitional protection exists for those already on the five‑year track, creating legal and financial uncertainty.
- Stakeholders should monitor the president’s decision and assess whether alternative residency or citizenship programmes better align with their investment timelines.
