Portugal's Government Has Collapsed! What It Means for Expats & Immigrants

Portugal is facing a political crisis that could impact both residents and those planning to move here. With the resignation of Prime Minister Luís Montenegro and upcoming elections, political instability is at an all-time high. But what does this mean for immigrants and expats? Will visa policies change? Could economic uncertainty affect your move? Today, we break down everything you need to know about the situation and how it might affect your future in Portugal.

Table of Contents

• What Happened?

• Why Did the Government Collapse?

• How This Affects Immigrants

  • 1. Visa & Residency Applications

  • 2. Public Policies & Financial Support

  • 3. Risk of Stricter Immigration Laws

• New Elections & What Comes Next

• Key Takeaways for Expats

What Happened?

On March 11th, 2025, Portugal's Parliament rejected a motion of confidence for Prime Minister Luís Montenegro, leading to his resignation. This decision came after months of political tension and corruption allegations surrounding Montenegro and his family business.

On March 12th, President Marcelo Rebelo de Sousa began consulting with political parties and announced that new elections will be held on May 18th, 2025. This marks Portugal’s third election in just three years.

Why Did the Government Collapse?

Montenegro led a center-right minority government, and from the start, his administration faced controversy. Some of the key scandals included:

• Business Connections: Reports linked Montenegro to a consultancy firm, Spinumviva, that had contracts with private companies, including casinos and hotels.

• Conflict of Interest: His family-owned company allegedly benefited from a 2024 real estate law that relaxed construction rules.

• Legal Representation for Casinos: Montenegro worked as a lawyer for Solverde Casinos, receiving payments while also leading the government that could renew their operating licenses.

Despite denying any wrongdoing, the Portuguese Parliament and the opposition pressured Montenegro to resign, leading to the downfall of his government.

📊 Avoid costly mistakes when moving to Portugal—get your personalized budget plan with the Portugal Budget & Relocation Toolkit today! 👉 Click here.

How This Affects Immigrants

If you're an expat in Portugal or considering moving here, here are the 3 key ways this political crisis might impact you:

1. Visa & Residency Applications

• Visa approvals will continue as usual, as these processes do not depend on the current government.

• No new visa types or rule relaxations will be introduced until the new government is in place.

• Nationality applications are not expected to be affected, but potential changes to the Nationality Law may be delayed.

2. Public Policies & Financial Support

• Government housing programs for expats may be delayed, such as the public guarantee program for home purchases without a down payment.

• Any budget approvals for expat-friendly programs will be postponed until the next government is in office.

3. Risk of Stricter Immigration Laws

• Parties like CHEGA, which advocate for tighter immigration policies, may gain influence in the new government.

• The next administration may re-evaluate existing immigration policies, so staying informed is essential.

👉 Navigating Portugal’s immigration, housing, or legal system? Don’t leave it to guesswork—book a 1:1 consultation call for expert advice tailored to your situation. Click here to get the clarity you need!

New Elections & What Comes Next

On March 13th, 2025, the President met with the Council of State to discuss the next steps. The outcome?

• Election Date: May 18th, 2025.

• Candidate Submissions: Political parties must finalize their candidate lists by April 7th, 2025.

• Political Landscape: While some expect significant changes, experts believe a radical shift is unlikely.

• Economic Impact: Portugal's economy is unlikely to suffer major disruptions since the budget has already been approved.

Key Takeaways for Expats

If you're living in or planning to move to Portugal, here are the most important points to keep in mind:

• Government policies affecting immigration and visas remain unchanged for now.

• Political uncertainty could impact long-term policies on housing, taxes, and public services.

• Stricter immigration laws could be introduced depending on which party wins the election.

• The economy is expected to remain stable despite political instability.