PORTUGAL TRENDS AND DEVELOPMENTS Contributed by: Joana Torres Fernandes and Luís Maria Branco, LVP Advogados
Immigration and Nationality in Portugal: Strategic Considerations for International Investors and Businesses Introduction: a changing landscape Portugal remains an attractive destination for inter - national investors, businesses and families seeking to relocate within the European Union. However, the conditions governing immigration and nationality have changed significantly in recent years, both in terms of legal framework and practical implementation. For many years, Portugal was perceived as a relatively accessible jurisdiction, combining residence routes with moderate stay requirements, a stable legal envi - ronment and a path to Portuguese citizenship after a comparatively moderate period of legal residence. That perception is now evolving. The country con - tinues to offer relevant opportunities, but the legal and administrative environment has become more demanding. This shift has become particularly evident over the past two years. Applicants are now more likely to encounter challenges not only in meeting legal requirements, but in navigating the practical aspects of the process. Timing, documentation, administrative access and procedural strategy have become central elements of immigration planning. As a result, successfully navigating the Portuguese immigration system can no longer be viewed as a purely legal exercise. It requires a structured and strategic approach that integrates legal eligibility, administrative dynamics, timing, documentation and long-term objectives, particularly for international cli - ents whose decisions involve mobility, tax exposure, business operations and family structuring. Nationality Law reform Nationality law has undergone one of the most signifi - cant reforms in Portugal in recent years, with direct impact on international families, investors and long- term residents. Following parliamentary approval, promulgation by the President of the Republic and publication in Por - tugal’s official gazette, the Diário da República , the new framework entered into force on 19 May 2026.
The reform increased the minimum period of legal residence required for naturalisation from five years to seven years for European Union and CPLP (Com - munity of Portuguese Language Countries) nationals, and to ten years for other foreign nationals. Access to Portuguese nationality by origin for children born in Portugal to foreign parents has also become more restrictive. Subject to the remaining statutory conditions, a declaration that the child wishes to be Portuguese must be made and, at the time of birth, one parent must have been legally resident in Portugal for at least five years. Special nationality regimes were also affected. In par - ticular, the previous naturalisation route available to descendants of Portuguese Sephardic Jews under Article 6 (7) of the Nationality Law was revoked. The revocation of this provision represents the effective closure of one of the most internationally known spe - cial nationality routes within the Portuguese system. At the same time, the reform introduced a new natu - ralisation route for descendants in the third degree in the direct line of Portuguese nationals of origin. This may be relevant for great-grandchildren of Portuguese nationals, but it is not an automatic route to national - ity by origin and requires at least five years of legal residence in Portugal. Another particularly relevant change concerns the calculation of the residence period itself. The reform revoked the previous rule under which, for national - ity purposes, the residence period could be counted from the date of submission of an application for a temporary residence permit, provided that the appli - cation was ultimately approved. The relevant period must now be assessed by reference to periods during which the applicant’s stay in Portugal was legally reg - ularised under a qualifying title, visa or authorisation. This change may have considerable practical impact, particularly in light of the delays currently affecting immigration procedures and residence permit issu - ance. This reform represents a fundamental shift in Portu - gal’s broader approach to nationality and long-term integration. While citizenship remains an important
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