Changes to citizenship rules have not altered the residency programme, which continues to offer flexible access to Portugal and the Schengen Area
As the dust settles after the alarmist headlines about Portugal’s new nationality law, investors are once again seeing the Golden Visa for what it is: a solid, reliable Plan B.
To unpack what the legal changes mean – and why they do not affect this popular residency route – we spoke with Gonçalo Mendes Leal, founding partner of Lisbon-based NSM Lawyers and a leading immigration expert.
Gonçalo Mendes Leal, NSM Lawyers
He explains the Golden Visa in clear, practical terms so applicants know exactly what they are signing up for.
To understand why the recent changes to nationality law caused such a stir – but left the Golden Visa untouched – it helps to go back to basics: The Portuguese Golden Visa is, at its core, a residency-by-investment programme.
“It’s an investment programme launched by the Portuguese government, under which you receive a temporary residence permit in Portugal in exchange for an investment,” explains Mendes Leal.
Pexels/Taha Samet
Importantly, he stresses that this is not a donation-only scheme: “The investment component is expected to be profitable, allowing investors to make a profit.” In return, investors receive a residence permit that allows them to live, work and study in Portugal, travel freely across the Schengen Area, and maintain minimal physical presence with just seven days per year in Portugal.
And under the umbrella of one investment, you can include your spouse or partner, dependent children, and dependent parents – this family reunification is one of the programme’s main attractions.
This status can be renewed indefinitely, providing long-term security without forcing families to relocate full-time.
Porto
Although the programme no longer accepts real-estate purchases, other options remain, such as a €250,000 donation to cultural projects, starting a company and creating 10 jobs, injecting €500,000 into an existing firm and creating five jobs, and a €500,000 donation to scientific research.
However, Mendes Leal notes these are often too ambitious or unattractive to investors due to profitability challenges or their specialised nature.
Investing in regulated funds is undeniably the most popular today. Investors commit capital – typically €500,000 under the current rules – to Portuguese risk capital or private equity funds. Mendes Leal notes that many Americans find fund-based pension and investment structures familiar, making open-ended funds especially attractive because they allow withdrawals at any time, providing comfort.
Well-managed funds have delivered strong returns – typically 12-15%, and up to 20% for top performers – whilst remaining well-structured, diversified, and backed by a proven track record.
To be clear, much of the recent confusion stems from conflating residency with citizenship. The Golden Visa provides residency; Portuguese nationality is a separate step. “They are not the same system. One leads to the other. Without one, you don’t get to the other,” Mendes Leal explains.
Lisbon
The path is relatively straightforward. First, you obtain temporary residence through the Golden Visa by making a qualifying investment. After five years of legal residence, you can either continue under the Golden Visa regime, renewing every two years, or apply for permanent residence.
Permanent residence gives you a five-year card, still with the same seven-days-per-year requirement, but it adds an A2-level Portuguese language exam.
Citizenship and the Portuguese passport come later. This is the area where the law has changed. Previously, most residents, including Golden Visa holders, could apply for citizenship after five years of legal residence.
The general rule is now 10 years, starting from the date your first residence permit is issued (not the date you submitted your application).
In the future, applicants will also need to demonstrate knowledge of Portuguese culture and the country’s administrative system, alongside language skills. As Mendes Leal puts it, the new rules aim to ensure that acquiring citizenship “involves not only obtaining the passport but also understanding Portuguese culture” and how the country works.
Crucially, this tightening was driven largely by other immigration routes, not by Golden Visa investors. Portugal saw a sharp rise in work visas and ‘manifestation of interest’ cases, creating what Mendes Leal calls “a systemic risk of a sudden increase of one million people in the Portuguese population”.
Algarve © Associação Turismo do Algarve
The government responded by raising the bar for citizenship, aligning Portugal with other European countries where passports usually follow 10 years of residence.
Far from criticising the change, he supports it: “I think it really values people who want to follow this path for good; they’re the kind of people we want here. People who are committed to the country, who come here, who like to invest, who like to see the country develop, and who respect our habits and culture.”
For Golden Visa investors who view Portugal as a long-term option rather than a quick passport factory, this can be positive. “They’re more protected under these citizenship rules,” he argues, adding that tighter controls “remove some types of immigration that could cause disruptions in hospitals, education, and security.”
For many clients from the US, UK, and other stable countries, a Portuguese passport is a future bonus, not the main goal. “It’s Plan B, an option if they want to change now or later, permanently or temporarily,” Mendes Leal says.
Families can split their year between Portugal and elsewhere, enjoying the country’s welcoming, English-friendly culture, weather, quality of life, cost, healthcare, education, and safety.
Looking ahead, Mendes Leal expects the programme to remain a key part of Portugal’s strategy and to keep maturing. After more than a decade, procedures are being improved, backlogs reduced to less than 12 months, and digital tools introduced. “I think it will remain very interesting for those viewing it as a Plan B for their family,” he says.
In essence, recent headlines emphasise nationality rather than residency. The Golden Visa programme remains reliable, offering families a flexible and profitable way to attain European residence today and a straightforward route to citizenship in the future.
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