Portugal’s Constitutional Court Halts Citizenship Overhaul, 5-Year Rule Stays

The Portugal Constitutional Court has pressed pause on tougher nationality rules, keeping the current 5-year residency track to a passport intact and sparing would-be citizens thousands in extra rent and paperwork for the foreseeable future.

Why This Matters

• Clock still at 5 years: Parliament’s plan to double the residency requirement is on hold, giving applicants time to file under the easier standard.

• Golden Visa untouched: Residency-by-investment rules remain identical—still just 7 days of annual presence needed.

• Window likely closes after Easter: Lawmakers reopen debate in February; new rules could be in force by early summer.

• Extra cost if delayed: Moving from 5 to 10 years of residency would add roughly €60,000 in living expenses for a family of four in Lisbon.

Where the Draft Law Stands Now

The package approved by the Portugal Assembly last October sought to extend the general residency threshold to 10 years, with a softer 7-year target for citizens of the CPLP. It also introduced stricter background-check language and gave judges power to strip nationality in certain criminal cases.

In December, however, the Constitutional Court’s Acórdão 1133/2025 branded five articles unconstitutional for breaching the principles of equality, proportionality and legal certainty. Because the ruling came during preventive review, none of the amendments ever reached the Diário da República. The file now returns to the Assembly for rewrites, a process scheduled to resume once the presidential election dust settles in February 2026.

Why Lisbon Wants Stricter Rules

Portugal’s foreign-born population has doubled in eight years, and policymakers argue that citizenship should reflect a “genuine, durable link” to the country. Officials from the Portugal Ministry of the Presidency frame the overhaul as a way to ensure language proficiency, cultural integration and national security.

Critics, including immigration lawyers and opposition parties, counter that the proposal risks throttling skilled-worker inflows just as Portugal hunts for engineers and health-care staff. The Court’s intervention shows that any final text must tread carefully between openness and constitutional safeguards.

Golden Visa: Still Open, Different Flavor

While the nationality debate rumbles on, the Portugal Golden Visa programme sails unchanged. Following the 2023 reform that removed direct real-estate buys, applicants now funnel capital into regulated investment funds, research, culture or job-creation.

• 2024 saw 4,987 approvals, a record since 2017.• Funds attracted an estimated €670 M last year, backing sectors from health tech to renewable energy.• Americans supplanted Chinese applicants for the top spot, mirroring Portugal’s growing reputation as a safe-harbour for dollar-based wealth.

Fund managers stress that every vehicle is overseen by the Portugal Securities Market Commission (CMVM) and audited externally, providing transparency rare in peer programmes across Europe.

What This Means for Residents

• Prospective citizens: If you already hold a residence permit issued before 31 December 2025, you can still count the full five years toward nationality—submit your dossier sooner rather than later.

• Long-term renters: A 10-year pathway would effectively tie you to Portugal for an extra lease cycle; budgeting ahead helps avoid last-minute surprises.

• Investors & expats: Golden-Visa holders remain eligible for a passport after 5 years of light presence, but the qualifying clock might eventually align with the general 10-year rule.

• Legal fees: Expect a spike in demand for lawyers in Q1 2026; retaining counsel early could save €1,500–€3,000.

Timeline to Watch

February 2026 – Parliamentary committee restarts clause-by-clause talks.

March 2026 – “Moving to Portugal” seminar in London offers live briefings from immigration lawyers.

April–May 2026 – Revised bill goes to floor vote; Presidential promulgation follows if constitution-proof.

Summer 2026 – Possible grace period ends; new residency clocks could start then.

For anyone weighing Portugal as their Plan B, the current standoff is less a warning light than an invitation to act while rules are clear. The Court’s pushback shows that even in hot political moments, Portugal’s checks and balances keep the legal ground from shifting overnight—valuable predictability in an unpredictable world.