Video Briefing

Nomad Capitalist: 8 Myths About Getting an EU Citizenship

Nov 1, 2022Video Briefing15:40Watch on YouTube

European citizenship is often surrounded by misconceptions that can lead prospective applicants to make costly mistakes. Below are the most common myths and the factual realities behind them.

1. Fake marriages do not grant EU citizenship

  • Residency requirement: Most EU states require a genuine, co‑habiting relationship for 3–5 years before a spouse can apply for naturalisation.
  • Verification: Authorities conduct police checks, home visits and may request proof of joint life (photos, language courses, community involvement).
  • Outcome: Even if a marriage were fabricated, the lengthy residency and integration checks make successful fast‑track citizenship highly unlikely.

2. Birth on EU soil does not automatically confer citizenship

  • The EU follows “jus sanguinis” (right of blood), not “jus soli.” A child born in an EU country inherits the nationality of the parents, not the place of birth.
  • Exception: Permanent residents may obtain citizenship for a child in some states, but this depends on national law and is not automatic.

3. EU passports cannot simply be bought

  • Fast‑track naturalisation (e.g., Malta) requires 18 months of residence and strict due‑diligence checks; it is not a cash‑for‑passport scheme.
  • Golden Visa programs (e.g., Portugal) grant residence permits first; a passport may be obtained after about five years if additional conditions (language, integration, etc.) are met.
  • Penalties: Misrepresenting a program as a “passport for sale” can lead to bans on doing business in the issuing country.

4. Citizenship does not bind you to permanent residence

  • Once naturalised, EU citizens are free to live, work, or travel in any EU/EEA country, including Switzerland, without needing to maintain residence in the state that issued the passport.
  • Many investors acquire citizenship in a state with a relatively easy route (e.g., Malta) and then relocate to another EU country for tax or lifestyle reasons.

5. Dual citizenship and tax obligations vary

  • Renunciation: Some EU states require you to give up previous nationality; others allow dual citizenship. Check the specific naturalisation law of the target country.
  • Taxation: Only the United States and Eritrea tax based on citizenship worldwide. EU countries tax primarily on residence; you pay taxes there only if you become a tax resident or earn income sourced locally.

6. Investment‑based passports are the same as regular passports

  • After successful naturalisation—whether via fast‑track, golden‑visa, or descent—the passport confers the same rights (travel, work, social benefits) as one obtained by birth.
  • The only notable exception currently involves Hungary, where the U.S. has imposed additional entry checks on recent Hungarian citizens obtained through investment.

7. Investment money is not a non‑refundable donation

  • Applicants pay due‑diligence and processing fees upfront; these cover background checks and administrative costs.
  • The larger investment or charitable contribution is only required after the application has been approved. If the application is rejected, no donation is taken.

8. Investment alone rarely leads to citizenship

  • While a few EU states have exceptional‑case provisions for high‑value investors (often €5 million–€30 million), the process is lengthy, requires parliamentary or presidential approval, and is not a standard pathway.
  • Most investment programmes are limited to residence permits (golden visas); citizenship follows only after meeting additional residency, language, and integration criteria.

Practical takeaways

  • Verify the specific residency period and integration requirements of the target country.
  • Confirm whether the country allows dual citizenship and whether you must renounce your current nationality.
  • Understand the tax residency rules to avoid unexpected liabilities.
  • Ensure any investment is structured as a genuine business or real‑estate venture, not a mere donation, and that you receive written approval before transferring funds.

By separating fact from fiction, prospective applicants can navigate EU citizenship routes more safely and make informed decisions about residency, investment, and long‑term planning.