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Portugal is facing a wave of legal challenges from thousands of international investors who claim the government has failed to deliver on its ‘golden visa’ promises. Years-long delays in processing residence permits, coupled with recent, unexpected changes to citizenship eligibility rules, have ignited a growing dispute that is now moving into the courts.
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The ‘golden visa’ program, which has been in operation since 2012, offers non-European citizens a path to residency and eventual citizenship in an EU country in exchange for significant investment. In Portugal, the minimum investment was initially set at €250,000, with options extending up to €500,000 in other EU nations like Greece, Italy, and Latvia. While theoretically designed to boost host country economies, the program has long been controversial, attracting scrutiny for allegedly facilitating access for individuals with “questionable backgrounds” and contributing to soaring luxury real estate prices in major Portuguese cities.
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For many investors, the reality has fallen far short of expectations. Luke Strzegowski, a 55-year-old American, moved to Portugal four years ago with his family, investing €350,000 – “It was all we had,” he states – in a home near Sintra. He applied for a golden visa, anticipating eligibility for permanent residency or citizenship after five years. However, Strzegowski is still awaiting his initial temporary residence permit, which by law should be issued within 90 days. He explains the practical implications: “I work in the solar industry. I still need to travel. There is a conference in Munich every year. I can’t go there because of our illegal status in Europe.” This delay has pushed back his expected timeline for permanent residency and, crucially, citizenship, which has now been doubled from five to ten years for most non-EU citizens by a new government coalition.
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Another American investor, Servet Tasman, who invested €350,000 in two houses in Evora at the end of 2021, echoes Strzegowski’s frustration. Tasman’s original objective was to become a European citizen to work for a European telecommunications company. Under the previous law, he expected to be eligible for citizenship in 2028. With the new rules, this has been extended to 2037. “In one night I lost nine years. Incredible. I don’t know what they are smoking,” Tasman laments. He also faces restrictions on his investment, unable to withdraw his capital until he qualifies for permanent residency, now delayed until 2030, two years later than planned. “Is that justice? Even in a banana republic, the king would say this is not fair,” he adds.
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Immigration lawyer Madalena Monteiro, who advises prospective immigrants, confirms that approximately 12,000 golden visa applicants are in a similar predicament. She notes that processing times for initial residence permits, legally mandated for 90 days, currently average “nearly five years.” Monteiro asserts, “Many people feel they’ve been cheated by the change in the law. They want to take legal action against the state. We’ve already collected more than 500 signatures from people affected.” A petition signed by 1,200 affected applicants has already been submitted to Portugal’s Justice Ombudsperson, with a class action lawsuit and individual civil claims for damages expected to follow. Applicants are prepared to escalate their case to European or international institutions if necessary.
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Rui Armindo de Freitas, the Portuguese secretary of state responsible for the issue, offers a different perspective. He maintains that the changes to the citizenship law are separate from the golden visa program itself, merely aligning Portugal with other European countries’ waiting periods. De Freitas insists that the five-year waiting period for permanent residency remains unchanged for golden visa holders. He attributes any misaligned expectations regarding citizenship to the agencies marketing golden visas, not the government. Addressing the processing delays, de Freitas states, “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.” He cites “limited resources” and the need to “set priorities” for missing the legal 90-day deadline.
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However, immigration lawyer Gilda Pereira, who heads one such marketing agency, refutes de Freitas’s claims. “That’s simply not true,” she counters, asserting, “The Portuguese government itself advertised the prospect of citizenship for golden visa holders in its consulates, using promotional posters.” Pereira notes these posters have since been removed, and the government is now attempting to shift blame.
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Despite the growing chorus of discontent and the threat of legal action, the path to resolution for these investors may be protracted. Portugal’s judicial system is notoriously slow, with court cases often spanning years. This protracted timeline means that by the time a verdict is reached, many golden visa applicants might find themselves having already fulfilled the newly extended waiting period for citizenship, further complicating the pursuit of redress for their perceived grievances.
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