EU moves to regulate 'golden visas' amid growing concerns over residency schemes

The European Union is moving to end "golden passports" and regulate "golden visas" issued by its member states. Golden visas are residence permits granted to wealthy foreigners in exchange for investments in EU countries, while golden passports offer EU citizenship in return for larger financial contributions.

The European Parliament has proposed common rules to address concerns surrounding "golden visas" and "golden passports." EU lawmakers are seeking standardized European regulations to combat money laundering, corruption, and tax evasion, including a significant tax on qualifying investments, eventually phasing out "golden passports" programs entirely and regulating "golden visas" indefinitely.

For example, Spain’s golden visa grants automatic residency upon purchasing a €500,000 or more property. The permit extends to immediate family members—spouses and children—for an initial two-year term, with the possibility of renewal.

In 2022, the EU urged governments to abolish citizenship-by-investment programs. Though distinct from golden visas, which confer residency rather than citizenship, the call was part of a broader effort to dismantle an industry that generated billions for participating countries.

Ireland and Portugal have announced plans to end their golden visa programs

Brussels has grown increasingly critical of the practice, and the growing number of EU member states selling temporary residency permits or passports to a select few in return for investment are now winding down these programs one by one.

Only two countries now remain, Malta and Austria, still catering to wealthy foreigners seeking tax benefits and unfettered access to the Schengen Zone. The current geopolitical climate and tightening restrictions have further complicated this landscape.

Beyond Europe, the fallout is also being felt abroad: the EU suspended visa-free travel for Vanuatu passport holders. Since the 2022 suspension, travelers from Vanuatu must obtain a visa for short stays in Europe, despite having enjoyed visa-free Schengen access since 2015. The citizenship-by-investment programs in Vanuatu were cited as one of the reasons for the suspension. French, Belgian, and Swiss nationals still do not require a visa to visit Vanuatu—at least for now.