Portugal's Constitutional Court ruling gives a boost to Golden Visa program

It was widely anticipated that Portugal’s Constitutional Court would rule on the government’s proposed amendments to immigration laws unconstitutional, given their “aggressiveness.”

The proposed measures involved delaying family reunification for two years after the main applicant receives their residence permit and extending AIMA decision-making deadlines to nine months with a renewal option. Additionally, the ability to file urgent legal actions for faster scheduling of pending cases would be removed to reduce injunctions.

The Court declared five out of seven provisions unconstitutional, prompting the President of the Republic, who opposed the proposal, to veto the bill.

What happens next in the legislative process

With the presidential veto, the legislative process resets. The President will return the bill to the approving body (Parliament), and the text is suspended until reconsideration. Given that Parliament is currently in summer recess, this will only take place in September.

There is no fixed constitutional deadline for reappraisal, but in practice, it is usually scheduled for a plenary session soon, typically within 15 days of resuming activity.

Parliament can either amend the bill and resend it to the President or confirm it with a two-thirds majority, needing at least 154 votes. With the current minority government, negotiations are needed with either Chega and Iniciativa Liberal or the Socialist Party and Iniciativa Liberal.

If the bill is amended, the President may again request a preventive review of its constitutionality by the Court.

Political implications for upcoming reforms on immigration

The setback complicates the Portuguese government's reforms to the Nationality Law. If they use the exact wording, the President may again send amendments to the Constitutional Court.

The government faces two key challenges: revise its proposals to ensure they pass legal scrutiny and gain support from the opposition for approval, which may require compromises, including potential changes to the Citizenship Law.

Also, Parliament is unlikely to confirm the bill due to insufficient votes and the political risks of reinstating unconstitutional provisions, which could lead to numerous court actions.

A positive surprise for the Portuguese Golden visa and investor immigration

The Court's unexpected endorsement of positive differentiation for immigration pathways, such as the Golden Visa, is welcomed.

The program has faced controversy for over a decade, leading to neglect and underinvestment.

However, the recent ruling clarifies that there are no violations of non-discrimination principles and equality. The decision aligns with long-standing arguments from the Investment Immigration Industry that attracting foreign investment to a small country like Portugal requires competitive advantages, and that residency-by-investment programs effectively direct funds to sectors in need.

Mainly, the Court confirmed that the government has the legislative freedom to adopt differentiated policies, provided they serve a public interest. It recognized that the country benefits from attracting investor immigrants, and that their net economic impact is overwhelmingly positive when comparing their use of public resources to the new resources they bring.

With such a clear and favorable position from the Constitutional Court, the Portuguese government can now move forward confidently in improving and investing in this investor visa.

This decision may mark a turning point in Portugal’s approach to this investor visa, paving the way for the program to be publicly recognized for its value and positive impact, and to enjoy legislative stability in the years ahead.

As a professional in this industry advising clients since 2013, I warmly welcome the position taken by the Portuguese Constitutional Court. Professionals and investors are all too aware of the instability of the journey in recent years and the consequences of the lack of institutional recognition and investment in this residency by investment program.

This ruling opens a new chapter and sets high expectations. With the government's commitment to enhance the program and ongoing technological reforms at AIMA, Portugal’s Golden Visa could finally have the elements needed to realize its potential and regain international market confidence.