40% of New Portuguese Citizens Are Israelis: What’s Driving the Surge?

Lisbon, Portugl - Israelis now represent 40 percent of all newly naturalised Portuguese citizens, with more than 74,000 passports granted over the past five years, according to recent data from Portugal’s National Institute of Statistics (INE). Remarkably, about 60 percent of these newly minted Portuguese nationals continue to reside abroad, underscoring a citizenship boom rooted more in convenience than in immigration.

A Wave Triggered by Historical Reparations

The sharp rise in Israeli applicants traces back to Portugal’s "Sephardic Law," unanimously passed by Parliament in 2013 and implemented in 2015. This legislation sought to offer reparations to descendants of Sephardic Jews expelled during the Portuguese Inquisition of the late 15th century. Lawmakers, at the time, underestimated the scope: genealogists soon highlighted that potentially five million Jews globally: one-third of the world's Jewish population could qualify under this legislation.

This surge culminated in 2020 with a peak of approximately 60,000 citizenship grants before sparking political and administrative controversy, including investigations of high-profile figures like Russian billionaire Roman Abramovich. Consequently, Portugal introduced restrictions in 2022 and further tightened conditions in April 2024, now requiring a three-year residency period before citizenship applications from Sephardic descendants are considered.

Political Controversy and Heated Debates

Earlier this month, left-wing parties—including Bloco de Esquerda (BE), Partido Comunista Português (PCP), Pessoas-Animais-Natureza (PAN), and Livre criticized the government for what they described as an "artificial problem," alleging a de facto marketplace for citizenship primarily benefiting wealthy Israelis. They claimed this was a considerable failure in immigration policy.

André Ventura, leader of the right-wing party Chega, countered sharply in Parliament, emphasizing that "the actual issue is not the Sephardic Jewish community, whose presence in Portugal remains negligible, but rather the massive wave of illegal immigration facilitated by the Socialist Party’s (PS) policies, flooding the country with tens of thousands from third-world countries." Ventura highlighted the minimal demographic impact of the Sephardic law, starkly contrasting it with other immigration flows.

Who Else is Applying?

Israelis, comprising 40 percent of new Portuguese citizens, are followed by Brazilians at 23.5 percent (9,748 individuals). Cape Verdean citizens represent 4.3 percent (1,785), while Ukrainians account for 3.5 percent (1,467). Citizens from the Indian subcontinent, including Bangladesh, Nepal, and Pakistan, collectively represent around 7 percent (2,795 individuals).

Economic Contributions and Minimal Residential Impact

Contrary to concerns expressed politically, data demonstrates that most Israelis obtaining Portuguese passports do not relocate to Portugal, alleviating pressures typically associated with migration, such as housing or welfare services. Additionally, Israelis tend to enter the Portuguese market as entrepreneurs, engineers, and technology specialists, creating high-quality jobs and stimulating economic exchanges with markets in Israel and the United States. With Israel's GDP per capita at roughly $57,000: nearly double Portugal's $30,000. These new citizens are often seen as economic assets rather than burdens.

A notable example includes the Israeli HR-tech company HiBob, which acquired Portuguese startup Bugle in 2022, establishing an R&D hub in Lisbon and creating dozens of high-paying jobs, directly enhancing Portugal’s tech ecosystem.

Historical Bonds Revisited

Historically, Sephardic Jewish families significantly influenced Portugal, notably during its Age of Discoveries, contributing capital and expertise to the Portuguese empire's maritime trade networks. Renowned families such as the Mendes and Abravanel families once played pivotal roles in Portuguese society, financing voyages, managing trade routes, and facilitating cultural exchanges between continents.

Door Now Closed for Future Applicants

Since the amendments enacted in April 2024, the pathway to citizenship for Sephardic descendants has effectively been closed for applicants without an existing residential connection. The three-year residency requirement substantially limits eligibility for new claims, ending the brief but intensive wave of Sephardic citizenship.

For thousands already holding Portuguese citizenship, however, their role continues—not as settlers in Lisbon or Porto but as global ambassadors connecting Portugal to international markets, reinforcing historical ties, and driving economic integration in boardrooms across the world.