Over 500 Golden Visa holders in Portugal prepare a class action against the government over changes to the citizenship law

More than 500 foreign nationals who have obtained or are in the process of obtaining a Golden Visa (Portugal’s “golden visa”) are preparing a collective lawsuit against the government. The trigger is a change to the National Citizenship Law, approved by Portuguese President António José Seguro on May 3.

According to Expresso, the initiative brings together participants mainly from the United States, with an international group composition. The coordination is being handled via WhatsApp, and the next step is expected to be the formal legal structuring of the effort as an association.

How naturalisation timelines have changed

The law was approved by 152 votes to 64 on April 1 following a political agreement between the ruling Social Democratic Party (PSD) and Chega. For most foreign applicants, the naturalisation period was extended from 5 to 10 years.

For citizens of EU countries and members of the Community of Portuguese Language Countries (CPLP), a separate rule applies: naturalisation is possible after 7 years of residence.

The key issue for applicants has been the lack of a dedicated transitional regime. The countdown now starts not from the date a request is filed, but from the moment a residence permit is issued by the Agency for Integration, Migration and Asylum (AIMA).

Why applicants view the changes as unfair

Liberty Legal founder Madalena Monteiro stressed that for pending (still not finalised) applications, the previous counting mechanism may remain in place. However, for future filings, she said, “the clock should run from the day after public administration fails to meet the legally set deadline for issuing a decision.”

Some lawyers representing investors recommend waiting for the final implementing regulations before submitting documents. One group participant, who asked to remain anonymous, said the investors intend to “exhaust Portugal’s legal system” and then assess next steps at the European level.

In addition to the litigation strategy, the changes have already produced a “cooling effect”: some applicants are withdrawing current applications, while potential investors are putting relocation plans on hold, Expresso reports.

“Legal stability must be ensured”

Monteiro, who submitted an amicus curiae opinion to the Constitutional Court in December on behalf of Golden Visa investors, said the amendments once again show that questions of the rule of law cannot be decided based on political agendas or media trends.

In her view, when the legitimate expectations of thousands of people and Portugal’s international reputation are at stake, priorities should be legal stability and protection of good-faith reliance, rather than rushed decisions.

The lawyer also noted that many affected individuals cannot accept such a substantial rule change “mid-game”. Some people are already trying to organise legal action—both collective and individual—in the hope that courts will protect their positions and confirm the principles of legal certainty and protection of legitimate expectations. Monteiro added that she is already preparing the legal basis and the structure of the lawsuits.

The argument of a “position formed consistently over time”

Prime Legal partner and co-founder Sara Sousa Rebelo framed the legal position through the concept of “the consistent formation of a legal position.”

She emphasised that citizenship and a residence permit are different legal statuses, and there is no automatic right to citizenship. But naturalisation through residence is the outcome of a complex legal process that develops over time. Residence is not a secondary element—it is a structural prerequisite for naturalisation.

According to Rebelo, this consistent formation creates at least qualified legitimate expectations that should receive judicial protection. As supporting evidence, she points to the actions of the state itself: previously, the SEF website directly referenced the possibility of obtaining Portuguese citizenship through the residence pathway under Golden Visa.

When the programme began, the period to citizenship was 6 years, and it was later reduced to 5 years. “For investors, it was perfectly legitimate to understand that the time to citizenship would align with the legal framework of residence along that route,” the lawyer said.

Administrative delays as the core problem

Rebelo linked responsibility to administrative delays by AIMA. She said lawyers have been raising this issue for years: many applicants waited 3, 4 or 5 years for SEF/AIMA to make a decision—despite the fact that the reasons for the delays were not dependent on the applicants themselves. Factors cited included lack of resources, absence of institutional support, insufficient clear instructions, and administrative inability.

As a result, in Rebelo’s view, applicants who filed earlier may need roughly twice as long to obtain citizenship, even though the procedures and rules in force at the start implied a 5–6 year horizon.

The lawyer highlights a legally relevant imbalance: “It cannot be considered legally neutral when the state benefited from investments, delayed the process, and then tried to shift the consequences of those delays onto people by worsening their path to citizenship retroactively.”

What legal steps are being considered

Rebelo listed several possible directions for protection:

• claims for the state’s material liability for harm linked to political and legislative decisions;

• challenging the legality and constitutionality of the relevant provisions in national courts;

• a possible review by the Constitutional Court;

• an application to the European Court of Human Rights after exhausting domestic remedies.

If the new system results in some applicants facing an actual time to citizenship of more than 10 years, additional questions may arise regarding compatibility with the European Convention on Nationality.

At the same time, the lawyer warned that the case is not “simple” or uncontested. Citizenship remains an exclusive prerogative of the state, and the legislature has broad discretion to set the conditions for acquiring citizenship. The Constitutional Court has recently confirmed this.

Therefore, as Rebelo stressed, the central question will be whether the state has exceeded constitutional and international limits in the specific circumstances at hand.

Portugal’s reputation and investor trust are at risk

According to Rebelo, the consequences affect not only investors. “The main test is whether Portugal wants to remain a legally predictable jurisdiction—one that respects the trust it builds among those who invest, plan their lives, and make long-term decisions based on the legal framework in force,” she said.

If the state can delay procedures for years and then change the rules to the detriment of applicants, the harm will not be limited to specific individuals. It will impact trust in Portugal’s legal system as a whole.

“This concerns families who trusted Portugal, made significant investments, and built their long-term ‘Plan B’ around a legal model promoted and supported by the state,” the lawyer added. In the end, she said, the sense of disappointment and the feeling of betrayal—“is not only understandable, but also legitimate.”

If you (or your family) are applying for Portugal Golden Visa, updates to naturalization rules and transitional provisions can significantly affect the timeline toward citizenship. To assess risks in advance and plan the right document strategy and residency count, visit Digital Nomad’s Golden Visa page and get guidance tailored to your situation.

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