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Portugal’s Golden Visa program, long seen as one of Europe’s most appealing residency-by-investment options, may soon become even more attractive. According to a Bloomberg report, the Portuguese government is considering reforms to streamline the application process and introduce improved financial incentives — potentially aligning the Golden Visa more closely with Portugal’s favourable tax regime.
In short, Portugal’s new centre-right government appears determined to reinforce its commitment to international investors, talent, and entrepreneurs.
Portugalist Insight: A Timely Boost for Golden Visa Appeal
This is good news for current and prospective Golden Visa holders. Portugal is now looking like one of the best remaining Golden Visa deals in the EU, particularly with Spain out of the picture.”
The possibility of integrating the program more closely with a revamped Non-Habitual Residency (NHR) regime — offering a 20% flat tax on domestic income and a 10-year exemption on most foreign income — could be a major game-changer.
The loss of NHR was a major deterrent for many would-be expats. Bringing back similar benefits, even just for Golden Visa applicants, would help encourage people to actually relocate to Portugal rather than using the visa purely for residency or a path to citizenship.
Currently, many applicants choose the Golden Visa specifically to avoid becoming tax residents, something that isn’t possible under Portugal’s D7 or Digital Nomad visas. By offering improved tax terms, the government could shift the trend toward more active and engaged expat residents.
Still, the devil is in the details.
10 Years of Tax Benefits: Enough to Build a Life?
“Ten years is generous compared to most countries. But is it really enough? It gives a clear benefit window, but people will always be looking at the clock — wondering whether to stay in Portugal or leave.
This could mean that even with stronger incentives, Golden Visa holders may never fully settle, always with one eye on the exit once the tax benefits expire. That said, it’s a notable step forward from the current situation, where incentives have been stripped back with little in return.
AIMA and the Application Backlog: The Elephant in the Room
Despite the positive tone from government officials, one major issue remains: processing delays. The Golden Visa program is still plagued by a massive backlog, with reports of over 45,000 applications stuck in the pipeline. And that’s just Golden Visa applications. The transition from SEF to AIMA was supposed to resolve this, but for many applicants, the experience hasn’t improved significantly.
The government has been promising to speed up application processing for years. But talk is cheap. Golden Visa applicants remain some of the worst affected. If Portugal wants to attract more investors, it needs to first respect the ones who’ve already put money into the country.
AIMA has been tasked with reducing the backlog this year, but without clear structural reforms or increased resources, skepticism remains high among applicants and legal professionals.
Citizenship Timeline: A Risky Rethink?
One of Portugal’s biggest competitive advantages over other Golden Visa countries — particularly Spain — is its relatively fast five-year path to citizenship. Rumours of potentially extending this timeline to seven years or more have raised eyebrows.
Extending the citizenship timeline would be a mistake. Portugal is already slow at processing citizenship applications — many people wait two years or more after submitting their paperwork. Realistically, a seven-year requirement could mean nine or even 10 years before getting a passport.
If the government wants to remain competitive in the global residency and citizenship market, holding onto the five-year rule — and actually enforcing it efficiently — will be key.
Final Thoughts
Portugal’s renewed push to enhance the Golden Visa is a smart move, especially in light of Spain’s exit from the space. But promises of improved tax benefits and faster processing many not be enough unless the country delivers on long-standing issues around bureaucracy, transparency, and application timelines.
With global investors now forced to look more closely at fewer options, Portugal has a chance to lead — but it must match words with action.