The recent upturn on events has put investment migration industry vulnerable to more scrutiny and policy changes. The EU court judgment against Malta operating investor citizenship program is expected to have a ripple effect on all the investment migration programs in the market.
EU Crackdown
The EU wide crackdown on citizenship and residence schemes could result in heightened scrutiny or in extreme case – dismantling of operating programs citing tax evasion, pressure on housing market, war on Ukraine, money laundering, EU against commodifying EU citizenship thus undermining sincere cooperation between member states. The EU sees these programs as a loophole allowing non-EU nationals to gain access to the Schengen Area without adequate vetting presenting “security threat”.
Commission vs Malta
Malta losing the court case vs commission in a surprise judgment will have a huge impact on future of golden visa and citizenship by investment programs, leading to heightened scrutiny imposing more tightening rules or risk of closure. The decision may force Golden visa programs may enforce a stricter “genuine link” criteria before granting passport to applicants. The Court judgment said Malta offers naturalisation in the absence of a genuine link of the applicants with the country, in exchange for predetermined payments or investments, the Republic of Malta has failed to fulfil its obligations under Article 20 TFEU and Article 4(3) TEU.
The ECJ decision may force Golden visa countries may enforce a stricter “genuine link” criteria before granting passport to applicants.
The Judgment sends warning to Caribbean countries operating CBI programs to establish genuine link condition, before handing out passports in exchange for investments.
Portugal Elections
Portugal elections can be a game changer for GV program. The new government (if far right party comes to power), could impose more stricter changes increasing to residence conditions and naturalization time for foreigners to become a citizen. Portugal’s ruling AD coalition has proposed tightening citizenship requirements if it wins a snap election on May 18, wants to extend naturalization citizenship from five to to 10 years and impose minimum residence period to 6 months (from current 2 weeks) to qualify for citizenship .
Visa Free Access At Risk
Caribbean and Pacific countries operating CBI/CIP schemes also risk losing visa waiver with EU and UK. The commission added new grounds for revoking visa free arrangements with third countries operating citizenship by investment. The EU/UK/US have long expressed security concerns arising from money laundering, corruption and tax evasion.
Closing Doors
Spain closing the golden visa programs puts more pressure on Portugal, Greece, Hungary and Malta to close their Golden visa schemes. Hungary, Portugal and Spain already closed visas for property buyers. Already Ireland, Netherlands, UK have terminated golden visa programs.
US Impact
Trump has signed Executive order subjecting additional scrutiny and checks on nationals of countries with poor vetting standards. This means countries operating citizenship by investment programs in Caribbean and Pacific may be subjected additional US visa restrictions. EU states operating cheaper version of the Golden visa programs may lose out to Trump gold card scheme for tax advantages. Wealthy investors and families may prefer US compared to Europe.
EU states operating cheaper version of the Golden visa programs may lose out to Trump gold card scheme for better life and tax advantages.
Apply Now
We suggest prospective investors and future applicants to apply now, under the current prevailing law and not miss out on golden window of opportunity without delaying.
