More than 500 foreign investors holding Portugal's Golden Visa are preparing a class action lawsuit against the Portuguese government over sweeping changes to the country's nationality law that double the residency requirement for citizenship.
The new law, enacted on May 5, 2026, extends the minimum residence period required for citizenship applications from 5 years to 10 years for most applicants. Citizens of EU member states and Portuguese-speaking countries (CPLP) see their requirement increase from 5 to 7 years.
According to Expresso newspaper, American citizens are particularly prominent among those pursuing legal action, though the group includes investors from various nationalities who coordinated through WhatsApp groups.
The lawsuit represents a significant backlash to Portugal's pivot away from investment-based immigration. The Golden Visa program, which allowed wealthy foreigners to gain residency through real estate or capital investments, became a pathway to EU citizenship for thousands of investors who planned around the previous 5-year timeline.
Multiple law firms are currently advising the group to wait for regulations to be finalized before officially filing the lawsuit. The investors plan to register as a formal association to facilitate legal proceedings.
The impact is already visible: Expresso reports that "more and more investors are cancelling their residence applications" in response to the changes, suggesting the policy shift may be dampening Portugal's appeal as a relocation destination for high-net-worth individuals.
This legal challenge highlights the risks facing digital nomads, expats, and investors who build long-term plans around residency-to-citizenship pathways. What seemed like a clear 5-year route to EU citizenship has suddenly become a decade-long commitment—raising questions about how retroactive policy changes should apply to existing visa holders.
