PORTUGAL NATIONALITY LAW CHANGES RAISE INVESTOR CONCERNS AS LEGAL ACTIONS SEEK PROTECTION OF EXISTING RIGHTS.

Independent Portuguese lawyers have filed administrative court actions seeking recognition of legitimate expectations, previous residence-counting rules and the rights of long-term integrated residents.

Portugal’s revised Nationality Law has created significant uncertainty among foreign residents and Golden Visa investors who organised their lives and investments according to the previous legal framework.

Organic Law No. 1/2026 was published on 18 May 2026 and entered into force on 19 May 2026. It increased the ordinary residence requirement for naturalisation to seven years for EU and Portuguese-speaking-country nationals and to ten years for most other foreign nationals. It also revoked the provision introduced in 2024 that expressly allowed the nationality residence period to include the waiting time between submitting a temporary residence application and its later approval.

GOLDEN VISA FUND REDEMPTIONS INCREASE SHARPLY

According to figures reported by The Portugal News, investors redeemed approximately €94.7 million from Golden Visa-eligible investment funds between January and May 2026. This was more than double the €45.3 million withdrawn during the whole of 2025. (The Portugal News)

However, the wider market picture should be presented carefully. Updated figures subsequently reported that approximately €283 million was subscribed to these funds during the same period, almost three times the amount redeemed. Therefore, the figures indicate increased uncertainty and investor repositioning, but not necessarily the collapse of Portugal’s Golden Visa investment market. (The Portugal News)

The Golden Visa residence programme remains available. The principal concern for many investors is the longer, less predictable route to Portuguese nationality.

WHY COURT ACTIONS HAVE BEEN FILED

Following individual case assessments and instructions from affected applicants, independent Portuguese lawyers collaborating with Crown’s clients have filed administrative court proceedings.

The proceedings do not ask for nationality to be granted automatically. They seek judicial examination and recognition of the legal position of applicants who began their residence and integration process before the new rules entered into force.

The principal arguments presented include:

1. PROTECTION OF LEGITIMATE EXPECTATIONS

Many applicants submitted residence applications, invested funds, established businesses or employment and organised their family lives while the previous legal framework was in force.

The court pleadings argue that these are not merely speculative expectations. They are based on official residence procedures accepted and processed by the Portuguese authorities and on years of genuine residence and integration in Portugal.

2. ADMINISTRATIVE DELAYS SHOULD NOT PENALISE APPLICANTS

Numerous residents waited several years for SEF or AIMA to process their residence applications. The legal actions argue that applicants who submitted documents, complied with official requirements, and acted in good faith should not lose several years due to delays beyond their control.

3. APPLICATION OF THE PREVIOUS LEGAL REGIME

Article 7(2) of Organic Law No. 1/2026 states that nationality administrative procedures already pending when the law entered into force remain governed by the previous version of the Nationality Law.

The court proceedings also raise the broader question of applicants whose residence procedures began before the legislative change and whose residence permits were subsequently approved.

The pleadings seek recognition that, in appropriate individual cases, the previous residence-counting rule should continue to protect a legal position already under formation.

4. LEGAL CERTAINTY, EQUALITY AND PROPORTIONALITY

The actions rely on principles including:

• Protection of legitimate expectations and legal certainty;
• Equality and proportionality;
• Good faith and fairness in public administration;
• The right to an administrative decision within a reasonable period;
• Effective access to judicial protection.

The supporting legal arguments also refer to applicants’ employment, tax payments, Social Security contributions, stable accommodation, family life and genuine connection with Portuguese society.

TWO TYPES OF LEGAL PROCEEDINGS

Depending on the applicant’s circumstances, the independent lawyers may use different forms of administrative action. For applicants seeking protection before a final refusal, an action may seek recognition of an individual legal position and the right to apply the previous residence-counting regime.

Where IRN has already rejected a nationality application, the action may seek judicial annulment of the refusal and an order requiring the competent authority to take the legally due decision.

Every case depends on its dates, residence history, pending procedures, documents and individual legal circumstances. Filing an action does not guarantee a favourable judgment.

CROWN PORTUGAL’S POSITION

Crown Portugal supports the fair treatment and proper recognition of foreign residents who have genuinely integrated into Portuguese society. Our services may include administrative guidance, organisation of supporting documents, translations, process coordination and referral to independent legal professionals.

Important legal notice: Crown Portugal is an immigration and administrative consultancy and is not a law firm. Crown Portugal does not represent clients before courts and does not guarantee the outcome of any administrative or judicial proceeding. All court documents, legal advice and representation are prepared and conducted exclusively by independent lawyers registered with the Portuguese Bar Association. This article provides general information and does not replace individual legal advice.

WHY THIS LEGAL ACTION MATTERS

Many immigrants established their lives in Portugal under the legal rules that existed when they submitted their residence applications. They worked, paid taxes, contributed to Social Security, maintained stable accommodation and developed strong personal and professional connections with Portugal.

For these residents, the change to the nationality rules is not simply a technical amendment. It may remove several years from the residence period considered for nationality purposes, especially where residence applications remained pending for extended periods due to delays by SEF or AIMA. The legal action argues that immigrants should not be penalised for administrative delays they did not cause. Applicants who submitted their documents, cooperated with the authorities, and acted in good faith should not lose the legal value of the years spent waiting for the Administration to decide on their residence applications.

PROTECTION OF LEGITIMATE EXPECTATIONS

The applicants organised their family, professional and financial lives in accordance with the legal framework then in force. Their expectations were not based only on personal hopes. They arose from official procedures accepted and processed by the Portuguese authorities.

The cases therefore seek protection of legal certainty and legitimate expectations. The argument is that a later legislative change should not unfairly destroy a legal position that was already being formed through residence procedures, employment, investment and long-term integration in Portugal.

Many have lived in Portugal for years, worked legally, paid taxes, made Social Security contributions, rented or purchased homes, supported their families and participated actively in Portuguese society. These facts demonstrate genuine and continuous integration.

The supporting legal arguments emphasise that effective integration, stable family life and economic participation must be considered when applying new legal rules to people whose lives were already established in Portugal

IMMIGRANTS CONTRIBUTED TO PORTUGAL

The affected residents are not asking for automatic nationality. They are asking the courts to consider their individual circumstances fairly.

Many have lived in Portugal for years, worked legally, paid taxes, made Social Security contributions, rented or purchased homes, supported their families and participated actively in Portuguese society. These facts demonstrate genuine and continuous integration.

The supporting legal arguments emphasise that effective integration, stable family life and economic participation must be considered when applying new legal rules to people whose lives were already established in Portugal.