Portugal’s “golden visa” program, designed to attract foreign investment in exchange for residency and eventual citizenship, is facing a significant legal challenge as thousands of investors, frustrated by years of delays and sudden rule changes, prepare to sue the state. The dispute highlights the complexities and controversies surrounding such schemes, particularly as applicants find their paths to European Union access unexpectedly prolonged.
Investment Promises Unfulfilled
Since its inception in 2012, Portugal’s golden visa program has offered non-European investors a pathway to residency and, eventually, citizenship within the EU’s Schengen Area. The scheme typically requires an investment of at least €250,000, promising an initial residence permit followed by eligibility for permanent residency and a Portuguese passport after five years. However, the reality for many applicants has diverged sharply from these initial expectations.
The program has not been without its critics. Concerns have long been raised about its potential to attract individuals with “questionable backgrounds” or “criminal ties,” with reports citing instances of “wealthy members of the Russian mafia and Chinese organized crime figures” obtaining visas. Furthermore, a significant portion of the investment flowed into luxury real estate, contributing to “dizzying levels” of housing prices in major Portuguese cities.
Years of Bureaucratic Stagnation
For many legitimate investors, the primary grievance stems from the Portuguese government’s failure to process applications within the legally mandated 90-day timeframe. Luke Strzegowski, a 55-year-old American, exemplifies the predicament. Four years ago, he invested €350,000 in a home near Sintra with his family, seeking a “better environment” for his daughters. Despite the initial promise, he is still awaiting his temporary residence permit. “I can’t go there because of our illegal status in Europe,” Strzegowski explains, referring to a business conference in Munich he cannot attend. This delay has pushed back his eligibility for permanent residency and, consequently, citizenship.
Immigration lawyer Madalena Monteiro, who advises prospective immigrants, states that approximately 12,000 golden visa applicants are in a similar situation. Monteiro reports that processing times currently average “nearly five years” instead of the stipulated 90 days. “Many people feel they’ve been cheated by the change in the law,” she asserts. Her agency has collected “more than 500 signatures” from affected individuals, and a petition signed by 1,200 applicants has been submitted to Portugal’s Justice Ombudsperson. A class action lawsuit before the administrative court, alongside individual civil claims for damages, is anticipated, with applicants prepared to escalate their case to “European or international institutions” if necessary.
Citizenship Rules Shift Mid-Game
Adding to the frustration, Portugal’s current center-right government, in collaboration with the far-right Chega party, has doubled the waiting period for naturalization for most non-EU citizens from five to ten years. This legislative change has retroactively impacted investors who made their commitments under different assumptions.
Servet Tasman, an American investor who put €350,000 into two houses in Evora at the end of 2021, vividly expresses his dismay. He had aimed to become a European citizen by 2028 to pursue telecommunications work within the EU. “According to my calculation, now it is going to be 2037. In one night I lost nine years. Incredible. I don’t know what they are smoking,” Tasman laments. He feels trapped, as the money invested cannot be withdrawn until he qualifies for permanent residency, now delayed until 2030 – two years later than originally planned. “Is that justice? Even in a banana republic, the king would say this is not fair,” he states.
Government’s Stance and Counter-Arguments
Rui Armindo de Freitas, Portugal’s Secretary of State responsible for the issue, defends the government’s position. He argues that the changes to the citizenship law are distinct from the golden visa program itself, merely bringing Portugal “into line with other European countries.” De Freitas insists that the five-year waiting period for permanent residency remains unchanged, and if applicants had different expectations regarding citizenship, the blame lies with “the agencies marketing golden visas, not the government.”
However, Gilda Pereira, an immigration lawyer who heads one such marketing agency, strongly refutes this. “The Portuguese government itself advertised the prospect of citizenship for golden visa holders in its consulates, using promotional posters,” she counters, noting that these posters have since been removed. “And now the government is trying to pin the blame on us.”
De Freitas attributes the processing delays to inherited backlogs, stating, “We inherited more than one million unprocessed visa applications of all kinds from the previous government. We’ve now cleared 98% of that backlog, and from this point on, we’ll focus on the overdue golden visa applications.” When pressed on the missed 90-day legal deadline, he cited “limited resources and have to set priorities.”
The impending legal battles are set to unfold against a backdrop of Portugal’s notoriously slow judicial system. Court cases often “drag on for years,” suggesting that by the time verdicts are reached, many golden visa applicants might have already fulfilled the extended waiting periods for citizenship, regardless of the court’s decision. This protracted legal process underscores the significant financial and personal uncertainty facing thousands of investors who sought a new future in Portugal.
