More than 500 foreign investors who have obtained Portuguese Golden Visas are preparing a class-action lawsuit against the government over a new citizenship law that extends the waiting period for applying for a Portuguese passport.
This concerns holders of ARI investment residence permits, known as “Golden Visas.” According to The Portugal News, investors believe the rule change violates their legitimate expectations, as many joined the program expecting to be able to apply for citizenship after five years of residency. Now, for some applicants, that timeframe could extend to eight or ten years.
The initiative brings together investors of various nationalities, with U.S. citizens being particularly prominent. The group’s members intend to first explore legal avenues within Portugal and then, if necessary, consider options for appealing at the European level.
The investors’ main complaint concerns the retroactive effect of the reform. Many Golden Visa holders had already been living in Portugal for several years, investing in funds, businesses, or real estate, and had planned to apply for citizenship under the old terms. In one example cited in the Portuguese press, an investor was less than two months away from completing the five-year period when the rules were changed.
The Portuguese Golden Visa has long been one of the most popular investment-based residency programs in the EU. It allowed foreigners to obtain a residence permit by meeting investment requirements and with minimal physical presence in the country, and then apply for citizenship after a set period of residence. However, in recent years, Portuguese authorities have consistently tightened their migration and investment policies.
This dispute is of significant importance for the real estate market and investment migration. If the courts rule that the new deadlines should not apply to existing investors, this will preserve some of the program’s credibility. If the state prevails, Portugal could face reputational damage among investors who viewed its rules as stable and predictable.
The changes could also affect other EU countries, where residence and citizenship programs are increasingly becoming the subject of political debate. Amid rising housing prices, migration pressure, and criticism of “golden visas,” governments are seeking to tighten conditions, but investors are demanding protection of previously acquired rights.
