The European Union’s Court of Justice has ruled that schemes, usually called a ‘Golden Visa’ or ‘Golden Passport’ used by a number of European countries to grant residency in return for investment in the country’s economy are illegal and must stop.
The case before the court involved Malta’s program, which has offered a residency permit that can lead to citizenship for as little as €100,000. The case was brought to the court by the European Commission, the executive arm of the EU.
“A member state cannot grant its nationality—and indeed European citizenship—in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction,” the court said. Although the court stressed that each member state has the right to decide on nationality, that right must “be exercised in compliance with EU law.”
The Maltese program came under particular criticism because of the large number of Russian, Belarusian and Chinese oligarchs who used it to become EU citizens. Cyprus, Bulgaria and Spain have had such programs but have ended them, while Portugal and Greece still have them and presumably will now have to end them.
A number of Caribbean countries offer variations, including straightforward “citizenship by investment” programs, and there are a number of commercial websites offering assistance in choosing a country and making arrangements.
