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1,260 Golden-Visa Investors Ready a September Court Fight Over Portugal's Ten-Year Citizenship Clock

A group of 1,260 residence-by-investment holders has filed a collective complaint with the Ombudsman and warns it will take the State to court in September over the retroactive ten-year wait for citizenship.

1,260 Golden-Visa Investors Ready a September Court Fight Over Portugal's Ten-Year Citizenship Clock

The long-running standoff between Portugal's residence-by-investment community and the government is heading for the courts. A group of lawyers acting for 1,260 golden-visa investors has filed a collective complaint with the Provedor de Justiça (Ombudsman) and says it is prepared to sue the State as early as September if no political solution emerges first.

At the centre of the dispute is last year's revised Lei da Nacionalidade (Nationality Law), which doubled the residency requirement for citizenship from five years to ten. Just as damaging for the investors, the reform changed when the clock starts. Under the old rules, the qualifying period ran from the moment an application was submitted; under the new regime it only begins once the applicant physically holds a residence card — a document that, for many, has been stuck in the pipeline for years.

A retroactive squeeze

The combination is what the complainants call a retroactive trap. Investors who committed capital on the understanding that naturalisation lay five years away now face waits they put at an additional two to four years. Some in the group say they have waited three to four years simply to receive the residence card that, under the new law, marks the start of the qualifying clock rather than a milestone along it. Because the reform included no transition arrangement for cases already in progress, applicants who did everything the old system asked of them find the goalposts moved after the fact.

The lawyers have sorted the affected investors into eight categories of circumstance, a structure designed to group the claims for a coordinated legal action. The initial complaint carries 1,260 names, but the organisers expect the eventual court filing to represent at least 2,000 investors, and references in the case suggest the universe of people in a comparable position could run as high as 10,000.

A fortnight to find a fix

“We're ready to file lawsuits in September if nothing happens by then,” said Catarina Almeida Garrett, co-founder of AGPC, the association coordinating the claim. A meeting with the Ombudsman is expected within the next fortnight, and the group has framed the coming weeks as a final window for the government to offer a remedy — whether a transition rule, a faster route to the outstanding residence cards, or a recalculation of the qualifying period — before the matter moves from administrative channels into litigation.

The episode is the latest strain on a programme that has already seen investors pulling money out of Portuguese funds and processing times stretch to record lengths. For a scheme originally sold on the promise of a clear, time-bound path to a Portuguese — and therefore European Union — passport, the prospect of a decade's wait, imposed midway through the journey, has become the sharpest grievance yet. Whether it ends in a negotiated fix or a courtroom will likely become clear by early autumn.