Video Briefing

Nomad Capitalist: The European Union’s Worst Passports

Oct 8, 2021Video Briefing7:33Watch on YouTube

European Union passports are often assumed to grant near‑universal travel freedom, but a few member states still face notable restrictions, especially for entry to the United States and Australia.

Passports with limited visa‑free access

Country Main travel limitation Current status
Bulgaria Not eligible for the U.S. Visa Waiver Program (ESTA); higher scrutiny for Australia’s Electronic Travel Authority (ETA) Requires a standard visa for the U.S.; ETA approvals are less frequent
Romania Same as Bulgaria – no U.S. Visa Waiver eligibility; stricter ETA processing for Australia Requires a standard visa for the U.S.; ETA approvals are less frequent
Cyprus Not eligible for the U.S. Visa Waiver Program; subject to Australia’s ETA restrictions Requires a standard visa for the U.S.; ETA approvals are less frequent

All three passports still allow unrestricted travel within the Schengen Area and most of Central and South America, as well as much of Asia (pandemic restrictions aside).

Why the United States matters

The U.S. Visa Waiver Program (VWP) lets citizens of participating countries obtain travel authorization online (ESTA) and stay up to 90 days without a visa. As of the latest update:

  • Poland joined the VWP in 2020, gaining ESTA eligibility.
  • Croatia is expected to join soon, pending final discussions.

Bulgaria, Romania, and Cyprus remain outside the VWP, meaning travelers must apply for a traditional U.S. visa, which involves longer processing times and higher fees.

Australian entry hurdles

Australia operates an ETA system that pre‑approves travelers from many countries. While the EU as a whole enjoys reciprocal visa arrangements with Australia, the ETA algorithm often rejects applicants from Bulgaria, Romania, and Cyprus at a higher rate than from other EU states. Although refusal rates are still relatively low compared with global averages, they are not low enough for these countries to be added to Australia’s visa‑free list.

Citizenship‑by‑investment considerations

  • Bulgaria – Offers a citizenship‑by‑investment route that can lead to EU citizenship in roughly two years.
  • Cyprus – The citizenship‑by‑investment program was terminated in late 2020; a residence‑by‑investment (“golden visa”) scheme remains, which can eventually lead to citizenship after several years of tax‑friendly residence.
  • Romania – Citizenship is harder to obtain; pathways include ancestry claims, long‑term residence, language proficiency, and naturalisation, with limited tax incentives for certain businesses.

Practical implications for a second passport

When evaluating a second EU passport, consider the following criteria:

  • U.S. travel needs – If frequent short‑term visits to the United States are important, prioritize passports that are VWP‑eligible (e.g., German, Portuguese, Irish, Polish, soon Croatian).
  • Australian travel – For business or tourism trips to Australia, note that ETA approvals are less predictable for Bulgarian, Romanian, and Cypriot citizens.
  • Visa processing time and cost – Standard U.S. visas can take weeks to months and involve interview fees; ETA rejections may require a full visa application as well.
  • Tax environment – Some of the “restricted” passports (Bulgaria, Cyprus) are paired with investment‑friendly tax regimes, which may offset travel inconvenience for certain investors.

Overall, while any EU passport provides broad mobility across Europe and many other regions, Bulgarian, Romanian, and Cypriot passports currently offer fewer visa‑free options for the United States and Australia. Prospective passport holders should weigh these travel limitations against other benefits such as investment incentives and residency requirements.