Thousands of investors and their families chose Portugal not only as an investment destination, but as a place to build long-term personal and professional ties, relying on a clear legal framework that guaranteed the possibility of applying for Portuguese nationality after five years of the residence request.

Recent developments regarding the Portuguese Nationality Law have raised serious concerns about legal certainty, legitimate expectations and the protection of investors whose residence processes are still pending.

This week, the Constitutional Court issued its decision on the Nationality Law, following two requests for preventive constitutional review submitted by the Socialist Party. The Court declared four provisions unconstitutional, three of them unanimously.

Among the provisions struck down were those that:

i) automatically barred access to Portuguese citizenship for individuals convicted of crimes punishable with two or more years of imprisonment;

ii) allowed the revocation of nationality in cases of alleged fraud, even affecting good-faith holders;
iii) determined that pending nationality applications should depend on the date of the residence permit approval rather than the date of submission of the residence application, a rule that the Court found to violate the principle of protection of legitimate expectations inherent in the rule of law enshrined in Article 2 of the Constitution; and

iv) permitted the cancellation of nationality registration based on conduct deemed to reject adherence to the national community and its symbols.

The President of the Republic will now return the law to Parliament, where amendments may lead to more balanced and constitutionally sound solutions.

In this context, it is essential to underline that counting the residence period for nationality purposes from the date of submission of the residence application must be preserved. Applicants should not be penalized for systemic delays and administrative inefficiencies attributable to AIMA. As a public authority, AIMA is bound by principles of efficiency, proportionality, economy and promptness, principles that, regrettably, have not been consistently observed.

This issue is particularly sensitive for Golden Visa investors. These individuals made substantial financial investments in Portugal, often amounting to hundreds of thousands or even millions of euros, with a clear and legitimate expectation established by law: the possibility of applying for Portuguese nationality after five years. Many restructured their lives, relocated families, enrolled children in schools and made long-term commitments to Portugal based on that legal framework.

Any increase of the residence requirement from five to ten years should not apply to Golden Visa investors whose applications are pending or who invested under the previous regime.

Failing to safeguard these investors would undermine legal certainty and erode trust in the Portuguese State, a keystone of any democratic society governed by the rule of law.

Moreover, Golden Visa applications have consistently been deprioritized by AIMA, resulting in prolonged delays. It would be manifestly unfair for investors to be harmed twice: first by administrative inertia, and then by legislative changes that disregard their legally protected interests.

Portugal has long been recognised as a stable, reliable and investor-friendly jurisdiction. Preserving that reputation requires respect for legal certainty, legitimate expectations and the fundamental principles of the rule of law.

Excluding Golden Visa investors from extended residence requirements and maintaining nationality eligibility timelines based on the submission of residence applications would protect both investors and the country’s economic interests. Doing so would prevent capital flight, avoid the loss of future investment and reaffirm Portugal’s commitment to fairness, transparency and democratic values.

Only once the final wording of the amended law is approved will the true impact on pending cases become clear. Until then, it is crucial that lawmakers ensure that those who invested in Portugal in good faith are not left unprotected.

https://mmt-legal.pt/