Challenges in Portugal’s Immigration System: What you need to know

Since 2016, Portugal has positioned itself as “the Silicon Valley of Europe”, attracting thousands of startups and their employees. However, the country has fallen short in adapting and modernizing its immigration processes to accommodate this wave of talent.

Portugal is currently facing a significant immigration backlog. After the closure of SEF (Serviço de Estrangeiros e Fronteiras), the establishment of the Agency for Integration, Migration, and Asylum (AIMA), and a change in government, there are now at least 400,000 immigrant cases pending. Many more are awaiting appointments to begin the residence process. This overwhelming caseload, combined with staff shortages at AIMA, has caused severe delays in processing times.

Who’s affected?

1. Residence Visa Holders: In some cases, those with residence visas haven’t been given appointments to convert their visas into residence cards.
2. Renewal Processes: The Portuguese government has extended the validity of all immigration documents and visas until June 2025 to manage the backlog. However, proof of a renewal appointment is needed for documents to remain valid beyond their current expiry. Currently, renewal is only possible online and is limited to those whose cards have expired.
3. Family Appointments: Families waiting for appointments face delays, as the current system only processes applications for families with children aged 5-14.
4. Residence Permit Applicants: Those who have submitted applications are facing long waits. Although AIMA is required to respond within 90 working days, processing often extends to 120 days or even up to 2 years.

What's being done?

To address these issues, the Government has introduced several measures, including ending the “Manifestação de Interesse” (Expression of Interest) and launching a “mega-operation” to clear the backlog by summer 2025. This operation, running until June 2, 2025, will involve up to 300 personnel dedicated to processing and assisting with immigration cases.

The impact on work mobility

This immigration backlog can disrupt business operations, negatively impact expansion, and lead to additional employee relocation costs. With no clear guidelines from the Portuguese Government, companies hiring international talent are caught in a dilemma: proceed with onboarding and risk fines, or delay their employees’ start dates by months.

While awaiting their work permit, applicants can legally reside in Portugal but are not considered residents. This can prevent them from opening a Portuguese bank account or becoming tax residents. As a result, employers may face complications in payroll due to different tax rates for residents and non-residents, as well as challenges in paying salaries without a local bank account.

At the same time, employees face a lengthy and confusing immigration process, and the possibility of being retained in Portugal until their process is complete. Although applicants can legally stay in Portugal until they receive their residence documents, traveling after their visa or Schengen allowance expires is risky, as there’s no guarantee of international recognition of expired documents. This means applicants need to remain in Portugal until they receive their new residence permit.

What’s the solution?

The best process for employers looking to speed up their employee’s relocation to Portugal is to contact a certified specialist and take legal action. Jobbatical’s local expert team can help you easily navigate policy changes in Portugal, ensuring a smooth and compliant relocation. 

Portugal has a relatively efficient immigration process compared to other EU countries and offers one of the easiest routes to permanent residency. However, to become and remain an attractive destination for innovative tech companies, the government needs to prioritize increasing processing capacity and modernizing the immigration system, following European examples like Germany.

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Jobbatical specializes in end-to-end global mobility and provide full support for the relocation of professionals to Portugal, for both employers and their employees. Learn more about our services here. For a personalized consultation, schedule a call with our team. 

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