Video Briefing

Nomad Capitalist: Europe’s First Citizenship by Birth Country

Dec 4, 2020Video Briefing9:14Watch on YouTube

Portugal has introduced a new nationality law that grants Portuguese citizenship to children born on its soil to foreign parents who have been residing in the country for at least one year. The change makes Portugal the first European nation to offer a form of birthright citizenship, expanding options for families who already hold residence permits such as the Golden Visa or a D7 (freelance) visa.

How the law works

  • Eligibility: Any child born in Portugal to parents who have legally lived in the country for a minimum of 12 months becomes a Portuguese citizen at birth. The rule applies even if the parents’ residence status is temporary (e.g., Golden Visa) or if they are undocumented, provided the one‑year residency condition is met.
  • Residence requirements: The law does not demand continuous physical presence; the one‑year period can be satisfied through the standard residency obligations of the relevant permit (e.g., the Golden Visa requires a minimum of seven days per year in Portugal).
  • Dual/multiple citizenship: Portugal permits dual nationality, so a child can simultaneously hold the citizenship(s) of the parents’ home country(ies). For example, a child of a U.S. and Australian parent could acquire U.S., Australian, and Portuguese passports.

Practical implications

  • EU benefits: Portuguese citizenship confers full European Union membership, granting the child the right to live, study, and work anywhere in the EU. This can serve as a hedge against future policy changes, such as tax reforms, that might affect non‑EU nationals.
  • Education and healthcare: Children with Portuguese citizenship are entitled to public education and healthcare services in Portugal and across the EU, often at lower cost than private alternatives.
  • Residency vs. citizenship: The advantage is distinct from traditional birthright citizenship (e.g., Canada or the United States), where a child can be granted citizenship regardless of the parents’ residency status. In Portugal, the parents must first secure a qualifying residence permit and meet the one‑year residency threshold.

Pathways to obtain the necessary residence permit

Permit type Minimum stay Typical investment / requirement
Golden Visa 7 days per year Real‑estate purchase (≥ €500 k) or capital transfer (≥ €1 M)
D7 (Passive Income) Visa No strict day count, but proof of sufficient passive income Monthly income ≥ €1 000 (or equivalent)
Other residence permits Varies May include work contracts, study enrolment, or family reunification

Once the permit is granted and the one‑year residency condition is satisfied, parents can give birth in Portugal and automatically secure Portuguese citizenship for the newborn.

Comparison with other birthright options

  • Americas (Brazil, Mexico, Panama) – Many countries allow children born to tourists to acquire citizenship without any residency requirement. Portugal’s model is more restrictive, requiring legal residence, but offers the added value of EU membership.
  • North America (U.S., Canada) – Both grant citizenship to children born on their soil regardless of parental status, but the U.S. and Canada have faced political backlash and are tightening policies in some jurisdictions. Portugal’s approach is less likely to be reversed because it is tied to established residence‑permit programs.

Considerations and potential drawbacks

  • Preparation time: Parents must first obtain a qualifying residence permit and wait at least one year before the birth can trigger citizenship. This adds a planning horizon that is not present in pure tourist‑birth scenarios.
  • Residency obligations: Maintaining the residence permit (e.g., meeting investment thresholds or income proofs) is mandatory; failure to comply could jeopardize both the permit and the child’s citizenship claim.
  • Integration requirements: Some residence routes eventually require language proficiency or cultural integration for naturalization, though these are generally applied to the parents rather than the newborn.
  • Tax implications: Portuguese citizenship does not automatically impose Portuguese tax residency on the child, but families should assess how dual citizenship may affect future tax obligations, especially if the child later resides in Portugal.

Steps for prospective parents

  1. Choose a residence pathway (Golden Visa, D7, work visa, etc.) that aligns with financial and lifestyle goals.
  2. Secure the permit and fulfill the initial residency requirement (minimum one year).
  3. Plan the birth in Portugal, ensuring the child is registered with local civil authorities promptly.
  4. Apply for the Portuguese passport for the newborn, which is typically issued automatically upon registration when eligibility criteria are met.

By meeting the residency condition and giving birth in Portugal, families can add an EU passport to their child’s portfolio, providing broader mobility, educational opportunities, and a safety net against future geopolitical or fiscal shifts.