The Portuguese government recently announced a series of legislative measures aimed at restructuring the national immigration framework. As part of these measures, Decree Law 85-B/2025 was published on 30 June 2025. The Decree Law extends the validity of certain residence permits and allows holders of expired permits to continue residing and working in Portugal legally until 15 October 2025. On March 2020, the Portuguese authorities approved the Decree-Law 10-A/2020, which extended the validity of all permits and visas that expired on or after 13 March 2020 "or in the 15 days immediately prior to that date" to 30 June 2020. The validity of these documents was subsequently extended several times, with the last extension until 30 June 2025. These extensions aim to support individuals who were facing delays with renewing their residence permits following the outbreak of the COVID-19 pandemic and the restructuring of the Immigration and Border Services which ultimately led to the creation of the new Agency for Integration, Migration and Asylum (AIMA). This new extension seeks to protect holders of impacted permits from having a gap in their residency in Portugal.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.