The Portuguese government is planning to extend the timeline for obtaining citizenship — increasing the number of years of residency required before one can apply.

Will this backfire?

Currently, Portuguese law allows foreign nationals to apply for citizenship after 5 years of legal residency. But in practice, the process takes 7 to 8 years, not 5, because after submitting the application, applicants often wait 2 to 3 years (or more) for a decision — depending on how complex their case is.

At a time when the Portuguese far-right seems to be on shaky ground — following a string of scandals that have weakened the CH party — the government is now adopting immigration and citizenship policies clearly aimed at attracting that same electorate. It’s a transparent attempt to steal votes from the conservative right, rather than a thoughtful reform of the system.

As part of that strategy, the government plans to increase the required residency period from 5 to 8 or 10 years before someone can apply for Portuguese citizenship.

But will this actually help Portugal — or hurt it?

If this proposal moves forward, it could seriously damage Portugal’s image as an attractive destination for immigrants — especially for highly skilled professionals, ambitious entrepreneurs, and retirees with solid pensions, many of whom invest significantly in the country.

The Portuguese authorities seem to misunderstand how their own immigration system works — or more importantly, why people choose Portugal in the first place.

On one side, this may lead labor migrants to choose other countries. Portugal is heavily dependent on foreign labor — tourism, agriculture, hospitality, and construction would not survive without it. Just take a look at who is doing the actual work in hotels, restaurants, and farms.

And yet, we must ask:
Why would a foreign worker choose Portugal over another country where they can earn more and get access to citizenship faster?

Portugal is attempting to implement immigration restrictions as if it were a high-income country, offering the kinds of opportunities that justify long and difficult paths to residency and citizenship. But it’s not — and that disconnect is glaring.

On the other side, with the end of the NHR regime, housing prices now among the highest in Europe, and a citizenship process that takes 5 to 8 times longer than in most other EU countries, the question also applies to expats:
Why would a retiree choose Portugal under these conditions?

Take Americans, for example.
Most Americans living in Portugal permanently did not come through the Golden Visa program. The vast majority arrived on D7 visas, rented or bought homes, and simply chose to live their lives here.

And no — most of them aren’t millionaires. They’re middle class. But the American middle class has significantly more purchasing power than its Portuguese one. Many of them are early retirees or small business entrepreneurs, in their 50s or even late 40s, and they are the ones who tend to invest the most in southern Europe — in property, local services, and small businesses.

There are many reasons why Americans choose Portugal as a country to live in — the climate, safety, cost of living, etc. But for many, access to citizenship is also one of the reasons.

Although many Americans have applied for the Golden Visa, an American — being from a Western country — is not looking for Portuguese (or any other European) citizenship for the same reasons, or with the same urgency, as Africans or Asians who applied for the same visa.

Still, citizenship access was definitely among the main factors for many.

At a time of social instability like the one currently experienced in the U.S., more and more Americans are turning to Portugal and other European countries that are (still) considered safe. And more and more Americans are looking for the possibility of, in the near future, being able to obtain a second passport.

And what if the Portuguese authorities’ obsession with Indo-Asian immigrants leads to more immigration policies that, in an attempt to please a handful of xenophobes, end up repelling expatriates who invest so much in Portugal — particularly in the real estate market, and whom the parties currently in power have worked so hard to attract?

Finally, it’s important to recognize that much of the construction in Portugal today is already being designed with foreign investors in mind. These aren’t just investors seeking profit or tourists looking for holiday homes, like the British in the Algarve at the end of the 20th century. These are foreigners with purchasing power well above that of the average Portuguese citizen — people looking to settle in Portugal permanently. Each new immigration policy has the potential to either attract or repel these expatriates, who contribute greatly to Portugal’s economy, particularly in the real estate sector.

If it is believed that property prices have risen due to the presence of numerous expatriates, the situation could worsen if these individuals no longer come with clear intentions of settling permanently. Rather than competing with the Portuguese who typically purchase homes within the same price range, they will increasingly compete for rental properties, which will further drive up rental prices. In a country where the majority of people do not meet the necessary requirements to apply for a mortgage, this would exacerbate the ongoing housing crisis in Portugal.

This text was written after conversations with several foreign clients who recently bought property in Portugal. As someone who regularly works with international buyers, I’m constantly speaking with people who are not only investing here, but genuinely considering Portugal as their long-term home. At the same time, I always try to remain aware of the broader housing crisis affecting Portuguese residents — and I believe it’s possible to acknowledge both realities at once.