Protocol for Changing Golden Visa Rules in Portugal

With Portugal going to the polls three times in three years, we thought it would be useful to understand the legislative process for changing the Golden Visa rules of engagement. There is a stark difference between statements of intent, and actual legislative change. Portugal is a slow moving, bureaucratic nation, run by coalition, it is not Singapore.

So here is how it works -

Legislative Process

1. Proposal Phase:
   • Changes to the Golden Visa program typically begin with a proposal from the government, usually through the Ministry of Justice or the Ministry of Internal Administration.
   • Proposals may also originate from political parties in the Parliament, especially during electoral campaigns (as we've seen with the AD coalition's recent proposals).
2. Parliamentary Approval:
   • For standard immigration rules, a simple majority in Portugal's Parliament (Assembly of the Republic) is required.
   • However, for more significant changes affecting citizenship (like the path from Golden Visa to citizenship), the law must be passed as an "Organic Law," which requires an absolute majority - at least 116 MPs voting in favor. Monteiro adds that modifying the nationality law will "require significant parliamentary support, with at least 116 MPs voting in favour." Portugal's AD Coalition Wants Stricter Physical Presence for Golden Visa Holders - IMI Daily
3. Presidential Review:
   • After parliamentary approval, the legislation is sent to the President of Portugal who has 20 days to make his decision, starting from the date he receives the final text from parliament. Portuguese Parliament Amends Nationality Law: A Quicker Path to Citizenship? – Nomad Gate
   • The President can either:
     • Approve and sign the law
     • Veto the law and send it back to Parliament
     • Refer it to the Constitutional Court for review if there are questions about its constitutionality
4. Publication and Implementation:
   • If approved, the law is published in the "Diário da República" (Portugal's official gazette)
   • Implementation typically begins either immediately or on a specified date, often the first day of the month following publication Portuguese Parliament Amends Nationality Law: A Quicker Path to Citizenship? – Nomad Gate
5. Regulation Development:
   • After the law is passed, the responsible government bodies (usually the Ministry of Justice) have a specific timeframe (often 90 days) to develop detailed regulations for implementation. Portuguese Citizenship Law - Amendments 2024 2025 | The Golden Portugal
   • These regulations provide specific guidelines for implementing the broader legal changes.

Timeframe for Changes

1. From Proposal to Implementation:
   • The entire process from initial proposal to full implementation typically takes 12-18 months. Portugal's AD Coalition Wants Stricter Physical Presence for Golden Visa Holders - IMI Daily
   • This includes the time for legislative drafting, parliamentary debate and voting, presidential review, and the development of implementing regulations.
2. Transitional Provisions:
   • Most Golden Visa rule changes include transitional provisions for applications already in process when amending Portugal's nationality laws. Portugal's AD Coalition Wants Stricter Physical Presence for Golden Visa Holders - IMI Daily
   • After parliamentary approval and presidential promulgation, the Diário da República publishes implementation decrees that typically establish a transition period of three to six months. Portugal's AD Coalition Wants Stricter Physical Presence for Golden Visa Holders - IMI Daily
3. Retroactive Application:
   • The program changes DO NOT impact Portugal Golden Visa applications made before the law change. If you've initiated or finalized your investment, you can still maintain your visa under the terms you initially applied for. Is the Portugal Golden Visa Ending? Not Exactly | 2025 Update
   • However, this is determined on a case-by-case basis in the legislation itself, and there's always the possibility that future changes could affect existing visa holders differently.

Current Political Context

The recent election results significantly impact the potential for and timeline of future Golden Visa changes:

1. Minority Government Challenges:
   • With the AD forming a minority government, they will need support from either the Socialist Party or Chega to pass significant legislation.
   • This political fragmentation will likely slow down any major reforms to the Golden Visa program.
2. Competing Priorities:
   • The AD coalition has expressed interest in tightening naturalization requirements, but this will need to compete with other legislative priorities in a challenging governance environment.
   • Changes might be incorporated into the 2025 budget negotiations, which would put the timeline in late 2024 or early 2025.

Conclusion

Based on the historical precedent and current political situation, if the AD government decides to proceed with changes to the Golden Visa program:

1. The legislative process would likely begin in late 2025 or early 2026 (after forming a stable government)
2. Parliamentary approval might take 3-6 months, especially given the need for broader consensus
3. Following presidential approval, a 3-6 month transition period would likely be established
4. Full implementation would occur approximately 12-18 months after the initial proposal

Importantly, existing Golden Visa holders would most likely be grandfathered under the rules that applied when they received their visas, though they might face different requirements if they later apply for citizenship under updated naturalization laws.

If you have any questions about the Portugal Golden Visa, reach out to us at hello@tejoventures.com

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