Three EU countries offer citizenship to the foreigners in exchange for the investments (“golden passports”), and 20 EU countries – residence permits in exchange for the investments (“golden visas”). According to the Report on Investor Citizenship and Residence Schemes in the European Union, which was published on January 23, these programs pose risks from the perspective of potential money laundering, tax evasion and corruption.
The report does not provide any specific measures for closing or restricting such programs – the European Commission will only “monitor steps taken by Member States to address issues of transparency and governance in managing these schemes”. If necessary, the Commission promises to “take measures”.
In these three countries, the applicants for citizenship do not even need actual residence in the territory of the country, but should only visit the country to submit biometric data and application, and have a personal conversation. Thus, it is relatively easy to obtain EU citizenship and all associated rights and privileges, including free movement within the EU.
Additionally, the program for granting of residence permits in exchange for investments is in force in 20 EU countries. The investment threshold varies from very low (about EUR 13.5 thousand for Croatia) to very high (over EUR 5 million in Slovakia and Luxembourg). Residence permit in any EU country provides opportunity to move freely within the Schengen zone for 90 days during any 180-day period.
Bulgaria, Cyprus and Malta have issued “golden passports” to foreigners since 2005, 2007 and 2013 respectively:
- In Bulgaria, it is necessary to invest EUR 1 million for this;
- In Cyprus – from EUR 2 million and to acquire real estate on the island;
- In Malta, it is required to contribute EUR 650 thousand to the national investment fund and additionally EUR 150 thousand to the economy, and to acquire or rent real estate.
In these three countries, the applicants for citizenship do not even need actual residence in the territory of the country, but should only visit the country to submit biometric data and application, and have a personal conversation. Thus, it is relatively easy to obtain EU citizenship and all associated rights and privileges, including free movement within the EU.
Additionally, the program for granting of residence permits in exchange for investments is in force in 20 EU countries. The investment threshold varies from very low (about EUR 13.5 thousand for Croatia) to very high (over EUR 5 million in Slovakia and Luxembourg). Residence permit in any EU country provides opportunity to move freely within the Schengen zone for 90 days during any 180-day period.
- The Organized Crime and Corruption Reporting Project (OCCRP) stated that Cyprus has granted citizenship for 1 685 foreign investors and 1 651 members of their families over the period from 2008 to early 2018. In particular, the Guardian newspaper wrote that Oleg Deripaska received Cyprus citizenship in 2017, which was also confirmed by the representative of the businessman to RBC. In addition, Cypriot citizenship was also offered to the head of the Renova Group, Viktor Vekselberg, but he rejected it.
- Dozens of Russian businessmen and their family members have obtained Malta citizenship over the period from 2015 to 2017, wrote RBC. In particular, the list of investors who received Maltese citizenship included the founder and co-owner of Yandex Arkady Volozh and his family members, the owner of the investment and development company O1 Properties, Boris Mintz and his family members, full namesakes of the family members of the co-owner of ICT Holding Alexander Nesis, as well as of himself.
- The Bulgarian passport was received in 2008 by a Russian businessman, the founder of Yota, Sergey Adonyev, but his citizenship was cancelled in May 2018 due to a criminal conviction in the United States, was reported by Reuters on January 23, 2019.