Preparing to settle in Portugal? Think again: Lisbon doubles citizenship timeline; wealthy Indians rethink golden visa plans

Portugal has made a major change to its citizenship rules, doubling the minimum time foreigners must live in the country before being eligible for a passport, from five years to as long as ten. The move has given a major blow to the plans of wealthy Indians who used Portugal’s golden visa route to eventually secure European citizenship.The shift also reflects a wider change across Europe. After the European Court of Justice ruled in April against Malta’s “citizenship-for-sale” model, and with several countries seeing a rise in right-wing politics, investment-based migration programmes are becoming harder to access.“Portugal’s decision to extend its citizenship timeline from five to up to 10 years has delayed naturalisation plans for many Indian investors,” said Gopal Kumar, founder of borderless. VIP, a global citizenship and residency advisory firm. “Around 10-12 clients in my current pipeline are directly affected, representing roughly 10 million euros in capital,” Kumar told ET.For years, Portugal stood out for investors with low stay requirements, real estate-linked investment options and future access to Schengen countries. But now, the mood has changed. According to Kumar, inquiries for Portugal have dropped, and “citizenship-oriented investors are already shifting to faster jurisdictions.”Many wealthy Indians are now considering other countries that promise quicker or clearer outcomes. Kumar said clients are moving to the UAE’s 10-year residency programme, Caribbean citizenship plans like Grenada and St. Kitts, the US EB-5 route, or Greece for residency.“Since the ECJ ruling, Portugal-focused inquiries have fallen by 30–40%, while interest in the UAE and Caribbean has risen,” he said.Kunal Sharma, founder of Taraksh Lawyers & Consultants, estimates that “roughly 300–500 Indian families” could be impacted, involving 150–250 million euros in committed investments. “Many applicants built their plans around a five-year passport horizon—that timeline is now effectively doubled,” he said.Experts said that public pressures within Portugal are also contributing to the change. Rising housing costs and the growing influence of far-right politics have pushed the government to take a stronger position on investment-led residency. “The decision to double the residency period is as much about optics and compliance with EU norms as it is about tightening migration control,” Sharma said. “The underlying message is clear: citizenship will follow meaningful integration, not merely investment.”Andri Boiko, founder of Garant In, said the trend is not limited to Portugal. “A more fragmented government in Portugal and a growing far-right presence have pushed citizenship and migration to the forefront of political debate,” he said. “Across Europe, governments are under pressure to prove that citizenship must be earned through genuine connection, not financial contribution alone.”Investor caution began last year when Portugal shut its real estate investment route. Sharma said the ECJ ruling has accelerated the shift. “Inquiries for EU programmes from Indian clients have dropped noticeably, while interest in UAE and Caribbean options has grown by at least 20–30% over the past two quarters,” he told ET.Boiko added that Indian applicants who are already part of the process are rushing to complete paperwork before the new rules take full effect, while new clients are exploring Greece, Italy and France for faster access to Schengen residency.For Indian wealth managers, the message is clear: spread investments or risk losing opportunities. “Those further down the line will weigh whether the time and financial commitment is worthwhile,” said Keshav Singhania, head of private client practice at Singhania & Co. He added that investors are now also looking at venture capital and private equity funds in areas like renewable energy and cultural heritage, which contribute more than just financial returns.