The European Union is tightening its stance on “citizenship‑by‑investment” (CBI) schemes, a move that could curtail visa‑free travel for several of the world’s most popular investment passports.
Vanuatu loses EU visa‑free status
- Announcement – The EU Commission published a press release on 12 January stating that Vanuatu will be removed from the EU visa‑waiver programme.
- Effect – From the start of the ETIAS (European Travel Information and Authorisation System) rollout next year, Vanuatu passport holders will need a Schengen visa.
- Timeline – The commission gave a two‑month notice from the date of publication before the visa‑free access ends.
The decision follows concerns that Vanuatu’s due‑diligence procedures do not sufficiently prevent fraud or criminal activity among CBI applicants.
EU push to curb “golden passports” and “golden visas”
A resolution in the European Parliament calls for a ban on:
- Golden passports – citizenship programmes that sell passports in exchange for investment (e.g., Malta).
- Golden visas – residence‑by‑investment schemes (e.g., Portugal, Greece, Latvia, Italy).
The resolution argues that these programmes raise ethical, legal and economic issues and pose security risks. It also seeks to:
- Prohibit marketing that uses EU symbols or suggests EU citizenship benefits.
- Hold intermediaries for CBI schemes accountable and increase transparency.
- Pressure third‑country governments that benefit from visa‑free EU travel to reform or abolish their CBI programmes.
Immediate impact on other CBI programmes
- Grenada – On 10 March, Grenada announced a temporary suspension of new applications from Russian and Belarusian nationals, citing the war in Ukraine.
- Potential ripple effect – The EU may extend similar restrictions to other CBI passports, especially if applicants originate from countries under sanctions or deemed high‑risk.
Risks for popular CBI passports
| Programme | Current status | Potential EU action |
|---|---|---|
| Saint Kitts and Nevis | Maintains Schengen access; has previously lost and regained it. | Low risk of immediate visa‑free loss, but could face future restrictions. |
| Dominica | Offers one of the cheapest CBI passports; strong ties with China and Russia. | Higher risk of EU visa‑free access being limited or revoked. |
| Other Caribbean programmes (e.g., Saint Lucia, Antigua & Barbuda) | Currently enjoy Schengen visa‑free travel. | May be subject to selective visa requirements based on applicant nationality. |
The EU could adopt a tiered approach, requiring visas for holders of CBI passports who travel on the basis of a “bad” origin country (e.g., Iraq, certain African states). In the longer term, full removal of Schengen access remains a possibility.
Practical considerations for investors
- Diversify citizenship and residence options – Relying on a single CBI passport may become risky if visa‑free travel is curtailed.
- Explore residence‑by‑investment programmes – Golden visas in EU member states (e.g., Portugal, Slovenia, Poland) can provide a more stable pathway to long‑term European residence.
- Maintain multiple “second passports” – Holding several citizenships or residency permits spreads risk and preserves mobility.
- Monitor due‑diligence standards – Programs that enforce strict background checks (e.g., Saint Kitts and Nevis) are less likely to face immediate EU sanctions.
Investors should stay informed about evolving EU regulations, assess the stability of their chosen CBI programme, and consider complementary residency options to safeguard international travel freedom.
