Portugal has been through more political change in the past twelve months than in the previous decade. A snap parliamentary election, a presidential race that went to a runoff for only the second time in the country's democratic history, and a Nationality Law overhaul that has been approved, struck down, and re-approved — all within a single year.
For American investors considering the Golden Visa, these shifts matter. Not because the residency program itself is under threat — it is not — but because the pathway from residency to citizenship is being redrawn. This article provides a factual timeline of what has happened and what it means for your planning.
The May 2025 Parliamentary Election
Portugal held its third snap election in three years on May 18, 2025, triggered after Prime Minister Luis Montenegro's minority government lost a confidence vote in March 2025.
The centre-right Democratic Alliance (AD) coalition won with 32.1% of the vote and 86 seats in the 230-seat Parliament. The far-right Chega party surged to 58 seats, matching the Socialist Party (PS) which fell sharply from its previous position. The result gave right-leaning parties roughly two-thirds of parliamentary seats — a significant shift in Portuguese politics.
Montenegro returned as Prime Minister, leading a minority government. With only 86 seats, the AD administration must negotiate legislation issue by issue, limiting its ability to pass sweeping reforms unilaterally.
What the Election Meant for the Golden Visa
The election outcome was broadly positive for the Golden Visa program. None of the parties capable of forming a government advocated eliminating the investment fund pathway. The left-wing parties that had been most critical of the program (PS, Left Bloc, CDU) all lost seats. AD has historically supported the Golden Visa — the Social Democratic Party originally introduced it in 2012.
The real area of convergence among right-leaning parties was not the Golden Visa itself, but the pathway to citizenship. AD, Chega, and Liberal Initiative all signalled support for extending the residency period required before citizenship eligibility. This legislative intent became reality within months.
The Nationality Law: A Nine-Month Legislative Saga
The most consequential development for Golden Visa investors has been the proposed changes to Portugal's Nationality Law. Here is the complete timeline:
June 23, 2025: The AD government formally proposed extending the citizenship residency requirement from 5 to 10 years for most foreign nationals (7 years for EU and CPLP citizens). The proposal also changed when the residency clock starts — from the date of application to the date the first residence permit is actually issued.
October 28, 2025: Parliament approved the amended Nationality Law with 157 votes in favor (PSD, Chega, IL, CDS-PP) against opposition from PS, Left Bloc, PCP, Livre, and PAN.
November 13, 2025: Before the President could sign the law, the Socialist Party requested a preventive constitutional review, sending it to the Constitutional Court and suspending the promulgation process.
December 15, 2025: The Constitutional Court struck down four provisions as unconstitutional. Key rulings included: retroactive application of the new timeline to existing residents violated the principle of legitimate expectations; citizenship revocation provisions were disproportionate; and certain criteria were unconstitutionally vague. The law was returned to Parliament for revision.
April 1, 2026: Parliament re-approved the revised Nationality Law by a 151-to-65 vote, clearing the two-thirds majority required for organic legislation. The PSD-Chega agreement maintained the 10-year timeline for non-EU nationals and 7 years for EU/CPLP citizens, reduced the criminal conviction threshold from 5 to 3 years, and did not include transitional protections for current residents — a point that the Socialist Party had pushed for but that was rejected.
Where Things Stand Today
As of April 10, 2026, the revised Nationality Law has been sent to the President for review. It is not yet in force. The existing 5-year citizenship rule remains active until the law is formally promulgated and published in the official gazette (Diario da Republica).
The President has three options: sign it into law, exercise a political veto (which Parliament could override with an absolute majority), or refer it to the Constitutional Court for further review.
The February 2026 Presidential Election
Portugal's presidential election added another layer to this story. The election went to a second round — only the second runoff in the country's democratic history since 1976.
In the first round on January 18, 2026, Socialist candidate Antonio Jose Seguro led with 31.1% of the vote, followed by Chega leader Andre Ventura at 23.5%. In the runoff on February 8, Seguro won decisively with 66.7% to Ventura's 33.3%. He was inaugurated on March 9, 2026.
Why the Presidency Matters for Golden Visa Investors
Portugal's presidency is largely ceremonial, but the president holds two powers directly relevant to this situation: the ability to veto legislation and the ability to refer laws to the Constitutional Court for review.
President Seguro is a former leader of the Socialist Party, which opposed the Nationality Law and advocated for transitional protections for existing residents. He has publicly expressed concerns about the law. Legal commentators expect he may exercise his veto or refer the law for further constitutional review, though Parliament's two-thirds majority could ultimately override a veto.
The outcome remains genuinely uncertain. Investors should plan for the possibility that the 10-year timeline becomes law, while understanding that the process is not yet complete.
What Has Not Changed: The Golden Visa Program Itself
Throughout all of this political activity, the Golden Visa residency program has continued operating normally. The core parameters remain intact:
The minimum investment of EUR 500,000 through qualifying CMVM-regulated investment funds continues to be the primary pathway. Real estate investment was removed in 2023 and has not been reinstated. The minimum physical presence requirement remains 7 days in the first year and 14 days in each subsequent two-year period.
Permanent residency after 5 years is unaffected by the Nationality Law changes. The pending legislation concerns only the pathway from permanent residency to citizenship — a separate legal process. Golden Visa holders who complete 5 years can apply for permanent residency regardless of what happens with the Nationality Law.
AIMA (the immigration agency that replaced SEF in 2023) launched a digital renewal portal in February 2026, and the government has committed to resolving all outstanding Golden Visa applications during 2026. Processing times for new applicants currently range from 12 to 18 months.
Practical Implications for Investors
The political developments of 2025–26 create a more complex but not fundamentally worse picture for Golden Visa investors. Several points are worth considering:
Residency rights remain strong. The Golden Visa provides a clear path to EU residency with minimal presence requirements. This has not been affected by any of the political changes.
Citizenship timelines are likely to increase. Whether the current 10-year proposal becomes law in its current form, is modified after a presidential veto, or is further revised, the direction of travel is clear: Portugal is moving toward longer residency requirements for citizenship, consistent with trends across Europe.
Permanent residency at 5 years provides substantial value. Even under a 10-year citizenship timeline, permanent residency after 5 years grants the right to live and work in Portugal indefinitely, visa-free Schengen travel, and an independent legal status for each family member. For many investors, permanent residency achieves the core objectives of family security and European access.
Existing applicants may have protections. The Constitutional Court's December 2025 ruling established that retroactive application of new rules to existing applicants violates the principle of legitimate expectations. While the revised April 2026 law does not include explicit grandfathering provisions, legal experts believe courts would apply similar protections if challenged. This remains an area of legal debate.
Portugal's program remains one of the last standing. Spain suspended its Golden Visa for real estate in April 2025. Malta's citizenship-by-investment program was struck down by the EU Court of Justice. Portugal's fund-based Golden Visa is now one of the few remaining reputable residency-by-investment options in Europe.
Looking Ahead
The next few weeks will bring clarity on the Nationality Law. President Seguro has 20 days from receiving the final text to make his decision. If he signs it, the law would likely take effect after publication in the official gazette, potentially as early as May 2026. If he vetoes it, Parliament can override with an absolute majority. If he refers it to the Constitutional Court, the law remains suspended until the court rules.
Pela Terra continues to monitor these developments closely. For a detailed analysis of the May 2025 election result and its implications for fund investors, see our comprehensive post-election report. For the latest on Golden Visa rules, visit our 2026 complete guide.
To discuss how these changes affect your specific situation, schedule a consultation with our team.
Regulatory disclosure: Pela Terra funds are managed by STAG Management SCR SA, regulated by the Portuguese Securities Market Authority (CMVM). Past performance does not guarantee future results. Capital at risk.
Last reviewed: April 2026
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