Portugal has long been a favoured destination for internationally mobile individuals seeking a high quality of life, EU access, and favourable residency or citizenship routes. However, from 19 June 2025, the Portuguese government has implemented radical changes to its immigration and citizenship laws, marking a significant shift that will impact investors, retirees, and families planning relocation.
With stricter eligibility criteria, longer timelines, and retroactive enforcement, it is now more important than ever for individuals and their advisers to take a holistic, financially informed approach to Portuguese residency and citizenship planning.
Key Legal Changes – and Their Financial Impact
1. Residency Requirement for Citizenship Extended to 10 Years
The general pathway to citizenship now requires 10 years of legal residency (previously five), except for nationals of Portuguese-speaking countries who may still apply after seven.
Financial Planning Insight:
Longer timeframes may affect exit strategies, succession planning, and the timing of tax residency decisions. Wealth structures should be reviewed to ensure they remain efficient over a 10-year horizon.
2. Stricter Criteria for Children Born in Portugal
Automatic citizenship is now limited to cases where at least one parent has three years of legal residence, and the family formally declares intent at birth.
Financial Planning Insight:
Families relocating under residency-by-investment schemes (e.g., D7 or Golden Visa funds) must coordinate family applications from the outset to avoid citizenship delays for children born in Portugal.
3. Integration Requirements for Citizenship
Applicants must now show:
- Portuguese language proficiency
- Knowledge of national culture
- Commitment to democratic values
Financial Planning Insight:
Long-term commitment to Portugal is now more than just financial. Clients may need to consider integration measures as part of their overall relocation timeline, particularly if citizenship is a key objective for estate planning or EU mobility.
4. Revocation of Citizenship for Criminal Offences
The state can now deny or revoke citizenship based on:
- Convictions for violent crime
- Organised crime or terrorism
Financial Planning Insight:
Due diligence on source of funds and lawful conduct is more important than ever, particularly for clients using structured investment vehicles or family offices.
5. Sephardic Jewish Citizenship Route Closed
Portugal has formally ended the popular Sephardic Jewish ancestry route to citizenship.
Financial Planning Insight:
Individuals previously relying on this path should reassess their options. Alternative routes—such as the Golden Visa via funds or D7 residency—may offer a compliant and efficient route to long-term residence and, eventually, citizenship.
6. Stricter Family Reunification Requirements
- Reunification now only allowed after two years of residence by the main applicant
- Language competence also required
Financial Planning Insight:
Families should apply together from the outset. This is particularly important for retirees with dependents or HNWIs seeking multi-generational relocation planning.
7. Retroactive Application of New Rules
Applications submitted on or after 19 June 2025 will fall under the new framework.
Financial Planning Insight:
If you have clients with pending applications or intentions to submit soon, urgent legal and financial review may be prudent . Missed deadlines could significantly alter expected outcomes, both legally and financially.
Strategic Advice for Investors and Families
Given the tighter rules, proactive financial advice is critical. Here are some steps high-net-worth individuals may consider now:
- Reassess residency plans: If citizenship is a long-term goal, ensure the chosen route aligns with the extended timeline and new integration demands.
- Review investment structures: The Golden Visa remains available via qualifying venture capital or private equity funds. Proper structuring ensures compliance and tax efficiency.
- Plan family relocation holistically: Apply jointly where possible to avoid delays or exclusions in future family reunification.
- Engage local expertise: Work with advisers who understand both Portuguese immigration law and international wealth management.
Final Word
Portugal remains an attractive destination for investors and families—but it now demands greater commitment, longer timelines, and sharper financial planning. By acting now and seeking specialist advice, you can ensure your immigration strategy remains compliant.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Generally speaking, saving money and planning for your future are two key aspects of financial planning. So, getting this right as early as possible should be one of your main priorities, to ensure that there are no nasty surprises down the line. There are a multitude of reasons that you might choose to put money aside, such as for a “rainy day fund”, a house purchase, your children’s education or making sure that you can retire comfortably.