The U.S. Congress has just closed a loophole that allowed investors who obtain citizenship through “citizenship‑by‑investment” (CBI) programs to apply for the E‑2 treaty‑investor visa. The change, enacted as part of the National Defense Authorization Act (NDAA), means that a CBI passport alone is no longer sufficient to qualify for an E‑2 visa; applicants must be domiciled in the country that issued the passport for a minimum period—generally three years—before they can use the treaty‑based visa.
What the rule change entails
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Previous practice – Many CBI programs (e.g., Grenada, Turkey, North Macedonia, Montenegro) marketed an “E‑2 feature” that let buyers obtain a U.S. visa shortly after purchasing a passport, often for an additional fee of $50 000 – $100 000.
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New requirement – The NDAA now bars anyone who obtained citizenship solely through a CBI scheme from applying for an E‑2 visa unless they can demonstrate domicile in the issuing country. Domicile typically means:
- Physical residence (owning or renting a home, having a car, etc.)
- Paying taxes as a resident of that country
- Maintaining the residence for at least three years before the visa application
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Effect on existing applications – Any pending or future E‑2 applications that rely only on a newly‑purchased CBI passport are expected to be denied. Applicants who already hold an E‑2 visa remain unaffected, but new eligibility is gone.
Immediate impact on investors and service providers
- Marketing agencies – Companies that previously sold “E‑2 access” as a package with CBI passports must revise their offerings. The promise of a quick back‑door entry to the U.S. is no longer viable.
- Prospective buyers – Those who were planning to use a CBI passport solely to obtain an E‑2 visa should reconsider, as the cost of the “E‑2 feature” (often an extra $50 000) now provides no benefit.
- Risk exposure – The change adds another layer of uncertainty to CBI investments. If a passport’s primary advantage (U.S. visa access) disappears, the overall value of the investment may decline sharply.
Historical context and why the risk matters
CBI programs have faced periodic scrutiny and, in several cases, have been terminated:
| Country | Program status | Approx. investment range |
|---|---|---|
| Cyprus | Closed 2020 | $2 M – $2.5 M |
| Bulgaria | Closed 2020 | $500 k – $1 M |
| Malta | Significantly restricted | $750 k – $1 M |
| Caribbean nations (e.g., St. Kitts, Antigua) | Ongoing but under review | $100 k – $150 k |
When programs are shut down, investors can lose both the passport and any associated visa privileges. The recent E‑2 restriction follows this pattern of increasing regulatory pressure.
Practical considerations for potential CBI investors
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Define your primary goal
- If you need immediate U.S. business travel and are not willing to relocate to the CBI country, the E‑2 route is no longer viable.
- If you intend to move, live, and pay taxes in the CBI country, the passport may still be useful for other purposes (e.g., visa‑free travel, tax planning).
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Assess domicile feasibility
- Verify that you can meet the three‑year residency and tax‑payment criteria in the issuing country.
- Consider the cost of establishing a home, maintaining a vehicle, and filing taxes there.
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Weigh the financial risk
- CBI investments range from $100 k for Caribbean programs to over $750 k for European options.
- The possibility of program suspension or loss of visa privileges should be factored into the expected return.
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Monitor regulatory developments
- The NDAA change is specific to the E‑2 treaty; other visa or travel benefits for CBI passport holders have not yet been altered, but future legislation could impose additional domicile requirements.
Bottom line
The removal of automatic E‑2 eligibility for CBI passport holders eliminates the “quick‑entry” appeal that many investors relied on. Only those prepared to establish genuine residence in the issuing country—and who value the broader benefits of a second passport—should consider a CBI investment at this point. For anyone whose primary motivation is fast U.S. visa access, the strategy is no longer viable and carries heightened risk of both financial loss and loss of intended mobility.
