Portugal: Costlier property, longer citizenship wait for foreigners

Portugal will raise property taxes on foreign buyers and extend the residency period for citizenship applications from five to ten years

Portugal will increase the property transfer tax on homes bought by non-residents, Prime Minister Luis Montenegro said after a cabinet meeting in Lisbon. The move forms part of a package of measures to tackle the country’s housing shortage.

 

“Portugal is facing a housing crisis, and our government is committed to ensuring more affordable options for residents,” said Montenegro. He added that the new measures also include building more homes, easing the permit process for construction, and offering tax breaks for young buyers.

 

Foreign interest in Portuguese homes

 

Portugal has drawn international attention for its mild climate, relatively low living costs and favourable tax schemes. Its golden visa programme has also lured buyers from outside the European Union.

 

Foreign residents are paying almost double the price of domestic buyers for property, according to the National Statistics Institute, which published data in June. 

 

Citizenship waiting time doubled

 

Earlier this month, the government confirmed that most foreigners will now need to reside in Portugal for 10 years before applying for citizenship, up from five years.

 

Cabinet minister Antonio Leitao Amaro said, “The new requirement will extend the current five-year rule to 10 years for most applicants, with a shorter seven-year threshold for those from Portuguese-speaking countries such as Brazil, Angola and Mozambique.”

 

The changes are part of a wider overhaul of immigration and naturalisation laws.

 

New rules on family reunification and crime

 

Leitao Amaro explained that the government will also review conditions for family reunification and introduce provisions allowing citizenship to be withdrawn from naturalised residents who commit serious crimes.

 

“We are significantly strengthening the requirements for access to citizenship, naturalisation, in line with the guidelines already included in the government’s programme,” said Leitao Amaro.

 

Criteria under the new law

 

Applicants for naturalisation must now:

• Live legally in Portugal for 10 years (or 7 years if from a Portuguese-speaking country)

• Show knowledge of Portuguese culture, rights and duties

• Declare support for democratic principles

• Have no criminal convictions leading to prison time

• Demonstrate knowledge of the Portuguese language

 

At present, naturalisation is possible after five years of residence, with proof of language proficiency, no prison sentence longer than three years, and no threat to national security.