organised a consultation with Member States. This report also takes into account other
relevant sources, including recent publications on the topic5.
This report covers both investor citizenship and residence schemes and identifies the key
areas of concern and risks associated with granting citizenship of the Union or residence
rights on the basis of an investment only. In particular, the report sets out the possible security
gaps resulting from granting citizenship without prior residence, as well as risks of money
laundering, corruption and tax evasion associated with citizenship or residence by investment.
It also describes challenges with respect to the governance and transparency of such schemes,
looks at how these might be addressed and provides a framework for improvement.
The report is accompanied by a Staff Working Document, which provides more detailed
background information on investor citizenship and residence schemes.
2. Investor citizenship schemes in the EU
2.1. Context
As expressed in the case law of the Court of Justice, nationality is a bond between a citizen
and the State, and it is “the special relationship of solidarity and good faith between [a
Member State] and its nationals and also the reciprocity of rights and duties, which form the
bedrock of the bond of nationality”6. Citizenship of a country is traditionally based on birthright acquisition, be it by descent (ius sanguinis) or by birth in the territory (ius soli)7. States
also give immigrants the possibility to naturalise as citizens, provided they fulfil certain
integration conditions and/or show a genuine connection to the country, which can include
marriage to one of its citizens8. All Member States have such ordinary naturalisation
procedures.
Most Member States also have discretionary naturalisation procedures 9. Under such
procedures, Member States can, on an individual basis, award citizenship to a foreigner on the
basis of “national interest”. This can be for outstanding achievement, for example in the area
of culture, science or sports. In some EU Member States, the legislation provides that
5
6
7
8
9
See in particular, European Parliamentary Research Service “Citizenship and residency by investment
schemes
in
the
EU:
State
of
play,
issues
and
impacts”,
October
2018,
http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_STU(2018)627128;
Transparency International/Global Witness, European Getaway – Inside the Murky World of Golden Visas,
October 2018, https://www.transparency.org/whatwedo/publication/golden_visas
Judgment of 2 March 2010, Rottmann, C-135/08, EU:C:2010:104, paragraph 51.
For a full overview of types of acquisition of citizenship, including birth-right citizenship, see the Global
Database on Modes of Acquisition of Citizenship, available at http://globalcit.eu/acquisition-citizenship/
Further detail concerning naturalisation via marriage in EU Member States is contained in Annex III of the
Study, ibid, note 4. Member States generally take steps to prevent the abuse of such possibilities, for
example in the context of marriages of convenience. To better detect and tackle fraudulently acquired
nationality, national authorities are encouraged to use interviews or questionnaires, document and
background checks, inspections or community-based checks while respecting applicable legal constraints,
such as those related to burden of proof or fundamental rights. They can also draw on the similarities
between fraudulently acquired nationality and right of residence acquired via marriages of convenience
with Union citizens (see the Commission’s Handbook on marriages of convenience (COM/2014/604 final).
For further detail see Annex III of the Study, ibid, note 4.
2