Portugal Doubles Residency for Citizenship, Impacting Wealthy Indian Investors

Portugal has significantly altered its citizenship by investment rules, extending the minimum residency period required for foreign nationals to obtain a passport from five years to as long as ten years. This policy shift directly impacts wealthy Indian investors who previously relied on Portugal's 'golden visa' route to secure European citizenship more quickly. The change reflects a broader trend in Europe, influenced by a European Court of Justice ruling against Malta's citizenship sales and rising right-wing political sentiment, making investment-based migration programs more restrictive.

Gopal Kumar, founder of borderless.VIP, stated that this extension delays naturalization plans for many Indian investors, with 10-12 clients representing approximately 10 million euros in capital directly affected. He noted a significant drop in inquiries for Portugal, with citizenship-focused investors now shifting to faster jurisdictions. Investors are exploring options such as the UAE's 10-year residency, Caribbean citizenship programs (Grenada, St. Kitts), the US EB-5 route, or Greece. Kumar observed a 30-40% fall in Portugal-related inquiries and a rise in interest for the UAE and Caribbean.

Kunal Sharma from Taraksh Lawyers & Consultants estimates that 300-500 Indian families, involving 150-250 million euros in investments, are affected. Many had planned based on a five-year timeline, which is now effectively doubled. Experts attribute this decision partly to public pressure in Portugal regarding rising housing costs and the influence of far-right politics. Sharma explained that the move aims to tighten migration control and signal that citizenship requires genuine integration, not just financial contribution. Andri Boiko of Garant In added that such pressures are visible across Europe, pushing governments to emphasize earned citizenship over purely financial contributions.

The trend began earlier when Portugal closed its real estate investment route. The ECJ ruling has accelerated this, with inquiries for EU programs dropping noticeably while interest in UAE and Caribbean options has increased by 20-30% in the last two quarters. Indian applicants already in the process are rushing to finalize paperwork, while new clients are considering Greece, Italy, and France for faster Schengen residency. Wealth managers advise Indian investors to diversify their investments.

Impact This news significantly affects Indian high-net-worth individuals seeking European citizenship and residency through investment. It will likely lead to a redirection of capital towards alternative global destinations and boost business for advisory firms specializing in these routes. The financial commitment and timeline for Indian investors have substantially increased for Portugal, prompting strategic re-evaluation. Rating: 8/10

Terms: Golden Visa: A residency permit granted by a country to foreign investors, often requiring significant investment in real estate, businesses, or government bonds. It typically leads to residency and, eventually, citizenship. Naturalisation: The legal process by which a non-citizen of a country may acquire citizenship or nationality of that country. Schengen countries: A zone comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. ECJ (European Court of Justice): The highest court of the European Union in matters of European Union law.