COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Investor Citizenship and Residence Schemes in the European Union
Date: 2019-01-23
Institutions: Directorate-General for Justice and Consumers, European Commission
Subjects: EU visa policy, European citizenship, foreign national, investment, money laundering, naturalisation, public safety, residence, residence permit, tax evasion

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.1.2019  SWD(2019) 5 final  COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Investor Citizenship and Residence Schemes in the European Union {COM(2019) 12 final}  
 
 
TABLE OF CONTENTS 

I. INTRODUCTION ............................................................................................................................... 2 

II. INVESTOR CITIZENSHIP SCHEMES ............................................................................................ 3 

II.1 Introduction: what are Investor Citizenship Schemes? ................................................................. 3 

II.2 Legal Basis of the Schemes .......................................................................................................... 3 

II.3 Institutional structure of the schemes ........................................................................................... 5 

II.4 Involvement of non-public bodies ................................................................................................ 6 

II.5 Investment required: type and amount .......................................................................................... 7 

II.6 Residence or other genuine link criteria ....................................................................................... 9 

II.7 Criminality and security checks .................................................................................................. 10 

II.8 Anti-money laundering measures vis-à-vis the investment ........................................................ 11 

II.9 Information about who obtains citizenship under these schemes ............................................... 13 

III. INVESTOR RESIDENCE SCHEMES ........................................................................................... 14 

III.1 Introduction: what are residence investor schemes? ................................................................. 14 

III.2 Institutional structure of the schemes ........................................................................................ 15 

III.3 Involvement of non-public bodies and intermediaries .............................................................. 16 

III.4 Investment required ................................................................................................................... 17 

III.5 Residence................................................................................................................................... 19 

III.6 Duration of stay and renewal of the permit ............................................................................... 20 

III.7 Criminality and security checks ................................................................................................ 22 

III.8 Anti-money laundering .............................................................................................................. 23 

III.9 Information about individuals obtaining residence under these schemes ................................. 24 

1 

 
 
 
 
  
 
I. INTRODUCTION 

This Commission Staff Working Document  accompanies the Report on Investor Citizenship 
and Residence Schemes in the European Union. It gives an overview of current national law 
and  practice  in  EU  Member  States  concerning  investor  citizenship  and  investor  residence 
schemes1. 

Citizenship,  the  status  of  a  person  as  a  legal  member  of  a  sovereign  state,  can  be  acquired 
through different means. Traditionally, citizenship is obtained based on one’s descent or place 
of  birth.  States  also  grant  citizenship 
that  fulfil  certain  requirements 
(naturalisation), such as extended residence, completion of language and citizenship tests and 
good conduct.  A “genuine link”2 between person and state is generally required. 

to  persons 

Three  Member  States  –  Bulgaria,  Cyprus  and  Malta  –  use  citizenship  to  attract  foreign 
investment  in  the  form  of  so-called  “investor  citizenship  schemes”.  Under  these  schemes, 
certain  ordinary  naturalisation  requirements  are  waived  or  softened  provided  the  applicant 
invests  a  certain  amount  in  the  Member  State  concerned.  Some  other  Member  States  grant 
discretionary naturalisation on grounds of special achievements in the national interest. Such 
special achievements are typically in the area of culture, sports or science, but can also cover 
economic achievements. 

A  person  who  becomes,  through  birth  or  naturalisation,  a  citizen  of  an  EU  Member  State 
automatically  acquires  Union  citizenship  as  well.  Union  citizens  enjoy  a  number  of  rights 
based on this status, for example the right to move and reside freely within the territory of the 
Member States, the right to vote and stand as a candidate in European Parliament and local 
elections and specific market access rights. 

Similarly, a number of Member States grant residence in exchange for investment. While the 
rights granted in this context are more limited than those granted through Union citizenship, 
they  also  impact  other  Member  States.  In  particular,  a  valid  residence  permit  issued  by  a 
Member  State  applying  the  Schengen  acquis  in  full  allows  a  third-country  national  to  enter 
any other Schengen Member State3 for a  duration  of  up to  90  days  in  any  180-day period. 
It  also allows access for short stays to  Bulgaria, Croatia, Cyprus and Romania based on the 
unilateral recognition of residence permits by these Member States4. 

1  

2  

3  

4  

The document is based on the external fact-finding study carried out by Milieu Law and Policy Consulting, 
Factual  Analysis  of  Member  States'  Investor  Schemes  granting  citizenship  or  residence  to  third-country 
nationals  investing  in  the  said  Member  State,  Brussels  2018  (“the  Study”).  After  the  conclusion  of  the 
Study, BG, CY and MT were invited to provide factual feedback on the parts of the study relating to their 
investor citizenship schemes. The comments received from the three Member States were duly taken into 
account, where relevant, for the preparation of this Staff Working Document. 
Judgment  of  the  International  Court  of  Justice  of  6  April  1955,  Nottebohm,  I.C.J.  Reports  1955,  p.  4, 
available at https://www.icj-cij.org/files/case-related/18/018-19550406-JUD-01-00-EN.pdf  
The Schengen area, i.e. the area without internal border controls, currently includes 26 countries, of which 
22 MS (AT, BE, CZ, DK, EE, FI, FR, DE, EL, HU, IT, LV, LT, LU, MT, NL, PL, PT, SK, SI and ES) and 
four associated countries (Switzerland, Norway, Iceland and Liechtenstein). 
Decision No 565/2014/EU of the European Parliament and of the Council of 15 May 2014 introducing a 
simplified regime for the control of persons at the external borders based on the unilateral recognition by 
Bulgaria, Croatia, Cyprus and Romania of certain documents as equivalent to their national visas for transit 
through  or  intended  stays  on  their  territories  not  exceeding  90 days  in  any  180-day  period  and  repealing 
Decisions No 895/2006/EC and No 582/2008/EC, OJ L 157, 27.5.2014, p. 23. 

2 

 
 
 
 
 
 
 
 
                                                           
Part  II  of  this  document  sets  out  further  detail  of  Member  States’  investor  citizenship 
schemes, as well as explaining the operation of discretionary schemes on grounds of national 
interest.  Part III sets out further detail of Member States' investor residence schemes.   

II. INVESTOR CITIZENSHIP SCHEMES 

II.1 INTRODUCTION: WHAT ARE INVESTOR CITIZENSHIP SCHEMES? 

Investor  citizenship  schemes  can  be  defined  as  a  Member  State  legislative,  policy  or 
administrative initiative aiming systematically to attract  investment  by allowing investors to 
acquire  citizenship  of  the  Member  State  concerned.  Bulgaria,  Cyprus  and  Malta  introduced 
such investor citizenship schemes in 2005, 2007 and 2013 respectively. 

A few other Member States have in their legislation the possibility to confer citizenship on an 
individual  basis  as  a  result  of  an  investment  made  in  the  country  via  either  discretionary 
naturalisation or discretionary facilitated naturalisation schemes5. Discretionary naturalisation 
on  grounds  of  national  interest  is  where  the  naturalising  authority  waives  all  or  almost  all 
naturalisation  conditions.    Discretionary  facilitated  naturalisation  on  grounds  of  national 
interest is where the naturalising authority waives some but not all naturalisation conditions. 
Such discretionary naturalisation procedures are highly individualised, are generally used on a 
limited  basis  and  do  not  provide  for  the  systematic  award  of  citizenship  based  on    an 
investment  in  the  same  way  that  the  investor  citizenship  schemes  of  Bulgaria,  Cyprus  and 
Malta do.   

II.2 LEGAL BASIS OF THE SCHEMES 

The Bulgarian Citizenship Act (BCA)6, together with the Foreign Nationals in the Republic of 
Bulgaria  Act7,  provides  for  two  pathways  through  which  foreign  investors  may  obtain 
Bulgarian  citizenship  by  waiving  some  of  the  ordinary  naturalisation  criteria8.  The 
Investments  Promotion  Act9  and  the  secondary  legislation  on  its  implementation,  are  also 
relevant  as  they  govern  the  procedures  for  certification  of  various  types  of  investments, 
among other matters. 

5  

6  
7  
8  

9  

AT,  BG,  SK  and  SI  all  permit  discretionary  naturalisation  on  grounds  of  the  “economic  interest  of  the 
state”, See Study Overview, p.4, and Annex III of Study, ibid, note 1. 
Bulgarian Citizenship Act, SG N. 136, 18 November 1998, as subsequently amended and supplemented. 
Foreign Nationals in the Republic of Bulgaria Act (FNA). 
The general criteria for the naturalisation of TCNs are: (i) having attained the age of 18 years; (ii) holding a 
permit for permanent residence or a permit for continuous residence in Bulgaria issued at least 5 years ago; 
(iii) not having been sentenced by a Bulgarian court for a wilful crime prosecuted ex officio by the state, 
and  is  not  subject  to  pending  criminal  proceedings  for  such  an  offence,  unless  the  person  has  been 
rehabilitated; (iv possessing an income or occupation allowing a person to subsist in Bulgaria; (v) having a 
command  of  the  Bulgarian  language  subject  to  verification  according  to  a  procedure  established  by  an 
ordinance  of  the  Minister  of  Education  and  Science  (this  requirement  may  be  avoided  in  certain  limited 
cases  specified  by  the  law),  and  (vi)  release  from  previous  citizenship  or  possibility  to  be  released 
therefrom at the time of acquisition of Bulgarian citizenship (this requirement  may be avoided in certain 
limited cases specified by the law). 
Bulgarian Investments Promotion Act. 

3 

 
 
 
 
 
 
 
 
                                                           
Table 1 summarises the differences between these two schemes. 

Table 1 Overview of Bulgaria’s investor citizenship programmes10 

Requirements 

Ordinary Investors’ 
Scheme (Article 12a BCA) 

Fast-Track Investors’ 
Scheme (Article 14a BCA) 

To hold a permanent residence permit and 
period for which it must have been held 

Yes, for 5 years 

Yes, for 1 year 

Amount of investment required11   EUR 500,000 

EUR 1 million 

Requirement for income or occupation 
allowing foreign national’s subsistence in 
Bulgaria 

Yes 

No 

In Cyprus, the Council of Ministers has the discretion to grant Cypriot citizenship to foreign 
investors for reasons of public interest (independently of their duration of stay), in exceptional 
circumstances where high level services were provided to Cyprus, under Article 111A of the 
Civil Registry Laws of 2002 to 201712. Implementing this discretionary power, the Council of 
Ministers  created  the  ‘scheme  for  naturalisation  of  investors  by  exception  on  the  basis  of 
subsection  (2)  of  Section  111A  of  the  Civil  Registry  Laws’  (scheme  for  naturalisation  of 
investors by exception or naturalisation by exception) in its Decision 81.292 of 13 September 
201613.  The  scheme  was  renamed  the  ‘Cyprus  Investment  Programme’14  in  the  course  of 
legislative amendments made in July 201815.  

Malta’s  scheme  –  the  Individual  Investor  Programme  (IIP)  –  is  regulated  by  secondary 
legislation  issued  under  the  Maltese  Citizenship  Act16,    namely,  the  Individual  Investor 
Programme of the Republic of Malta Regulations, Legal Notice 47 of 2014 (LN 47/2014)17. 
This  allows  for  the  granting  of  citizenship  by  a  certificate  of  naturalisation  to  foreign 
individuals  and  their  families  who  contribute  to  the  economic  development  of  Malta.  The 
Citizenship Regulations18 are also relevant to the regulation of the scheme. 

10  

In  both  schemes  the  applicants  must  be  of  legal  age  (above  18),  have  a  clean  criminal  record,  and  their 
physical presence in Bulgaria is not necessary (only when submitting the application). The terms ‘ordinary’ 
and  ‘fast-track’  are  used  due  to  the  fact  that,  in  the  ordinary  scheme  the  five-year  permanent  residence 
period  required  for  naturalisation  is  maintained,  while  in  the  ‘fast-track  scheme’  this  requirement  is 
lowered to one year. 
11   See section II.5 for details. 
12   Cyprus Civil Registry Law. 
13   Council  of  Ministers’  Decision  81.292  and  website  of  the  Civil  Registry  and  Migration,  available  at 
http://www.moi.gov.cy/moi/crmd/crmd.nsf/All/DABB1713307D8C4CC2257D2C0045433C?OpenDocume
nt 
http://www.moi.gov.cy/moi/moi.nsf/All/0A09FCB93BA3348BC22582C4001F50CF  

14  
15   Decision 906/2018 of 21 May 2018 on the  “Cyprus Investment Programme”. Due  to the timing of  these 
changes, it was not possible to take into account the most recent changes in Cypriot legislation and practice 
in the study. 

16    Chapter 188 of the Maltese Citizenship Act. According to Article 22(1) of the Constitution of Malta, ‘[t]he 

acquisition, possession, renunciation and loss of Maltese citizenship shall be regulated by law.’  

17   LN  47/2014.  A  correction  was  made  due  to  differences  in  the  Maltese  and  English  versions  of  the  law. 
These  changes  relate  to  the  correction  of  typographical  errors  and  have  no  impact  on  the  substantive 
requirements,  which  have  not  been  amended  since  the  adoption  of  the  law  in  2014.  Legal  Notice  59  of 
2014, Correction of Laws Order, 2014 (Legal Notice 47 of 2014). 

18   LN 106/1989. 

4 

 
 
 
 
 
 
                                                           
II.3 INSTITUTIONAL STRUCTURE OF THE SCHEMES 

In  Bulgaria,  the  competent  authority  is  the  same  as  that  for  naturalisation  procedures:  the 
Ministry of Justice is  responsible for making a  proposal  to  the President of the Republic of 
Bulgaria  to  issue  a  decree  on  the  acquisition  of  Bulgarian  citizenship.  Specialised  services 
within the Ministry will examine the relevant files to be sent to the Minister to propose a draft 
final decision. The Minister of Economy also plays a role in certifying that an investment has 
been  made19.  Ultimately,  the  President  issues  the  corresponding  decree  granting  or  refusing 
citizenship. 

The decision-making authority in Cyprus is the Ministry of Interior, although the competent 
authority  deciding  to  waive  the  naturalisation  conditions  is  the  Council  of  Ministers. 
Applications  are  processed  by  the  Director  of  the  Civil  Registry  and  Migration  Department 
and the Director General of the Ministry of Interior. 

In  Malta  the  Identity  Malta  Agency  (Identity  Malta)  carries  out  functions  and  duties  in 
relation  to  passports,  identity  documents,  work  and  residence  permits  for  expatriates  and 
individual investment programmes20.  On 29 March 2018, the Maltese government set up the 
Malta Individual Investor Programme Agency (MIIPA) to administer the IIP.21. Such work is 
carried  out  in  cooperation  with  Identity  Malta.  The  Minister  responsible  for  identity 
management  –  currently  the  Parliamentary  Secretary  responsible  for  Reforms,  Citizenship, 
and Simplification of Administrative Processes, within the Office of the Prime Minister  – is 
responsible for Identity Malta and for the MIIPA. 

Of  particular  interest  for  investor  citizenship  schemes  are  the  specific  monitoring 
mechanisms or reporting obligations.  In Bulgaria there are none: citizenship is granted by 
Presidential Decree, but there is no subsequent monitoring, as Presidential Decrees enter into 
force  at  the  moment  of  their  issuance  and  are  not  subject  to  judicial  review.  In  Cyprus, 
monitoring is possible, as the Council of Ministers must inform the House of Representatives 
before  adopting  a  decision  to  grant  citizenship22.  However,  there  is  no  publicly  available 
Parliamentary  Report  or  question  raised  at  the  House  of  Representatives  concerning  the 
monitoring of the scheme23.  In March 2018 a new Supervisory and Control  Committee was 
appointed,  made  up  of  officials  from  the  Ministry  of  Interior,  Ministry  of  Finance  and  the 
Cyprus Investment Promotion Agency (CIPA)24. The Committee is responsible for registering 
agents  (see  section  below  on  non-public  bodies);  it  does  not  appear  that  it  has  any  specific 
reporting  obligations.      However,  legislative  changes  in  June  2018  imposed  a  duty  on  the 
Cypriot  Ministry  of  Finance  to  conduct  studies,  assessing  the  application  of  the  Cyprus 

19  

‘Invest Bulgaria Agency’, an executive agency to the Bulgarian Minister of Economy, is also involved in 
the  procedures  for  granting  permanent  residence  and  citizenship.  In  particular,  it  supports  the  Bulgarian 
Minister  of  Economy  in  the  application  of  the  state  policy  in  the  field  of  encouragement  of  foreign 
investment. Website available at http://www.investbg.government.bg/en 

20   Chapter 497 of the  Laws of  Malta, Public Administration  Act, 27 November 2009, Act I of 2009 as last 
amended by Legal Notice 243 of 2017, Act II of 2018 and Legal Notice 96 of 2018; See also  subsidiary 
Legislation 497.07, Identity Malta Agency (Establishment) Order, 10 September 2103, Legal Notice 269 of 
2013, as amended by Legal Notices 101 of 2016 and 95 of 2018. 

21   LN 96/2018. 
22   Article 111A(3) of the Civil Registry Law. 
23   Search  at  the  website  of  the  House  of  Representatives  indicated  no  reference  to  the  Scheme: 

http://www.parliament.cy/easyconsole.cfm/page/search  

24   Council  of  Ministers  Decision  No.  84.068  dated  9.1.2018  and  the  following  Decision  906/2018  dated 

21.5.2018.  Further detail on the new Committee is available at http://cipregistry.mof.gov.cy/en/  

5 

 
 
 
 
 
 
                                                           
Investment  Programme  and  its  effects  on  the  economy,  and  to  provide  information  to  the 
Council of Ministers.25   It is too early to assess the impact of this new duty. 

Malta’s IIP Regulator (ORiip) reviews all aspects of the IIP and reports on its functions to 
the  Minister  annually.  These  reports  are  public  and  subject  to  parliamentary  scrutiny26.  The 
Regulator must also investigate complaints about the IIP27, but a legal instrument prescribing 
the procedure for complaints has not yet been adopted. A Monitoring Committee28 consisting 
of  the  Prime  Minister,  the  Minister  (responsible  for  identity  management)  and  the  leader  of 
the opposition monitors the IIP. This Committee must meet at least once a year and can ask 
the  Regulator  to  attend  and  report  at  its  meetings.    It  does  not  however  monitor  individual 
applications and relies on the regulator to do this. 

II.4 INVOLVEMENT OF NON-PUBLIC BODIES 

Non-public bodies play a role in the operation of investor citizenship schemes.  

In Malta, the IIP applications must be submitted to the Malta Individual Investor Programme 
Agency (“the MIIPA”)  either through Approved  Agents  or the  concessionaire29.  These non-
public bodies have a significant  role throughout  the application process,  acting on behalf of 
applicants and interacting directly with the competent authorities on their behalf. In addition, 
Maltese  legislation  provides  for  the  design,  promotion  and  operation  of  the  IIP  by  the 
concessionaire30.  This  role  has  changed  over  time  and  the  concessionaire  is  now  primarily 
concerned  with  promoting  the  IIP,  organising  events  in  Malta  and  advising  the  MIIPA  on 
legal or technical aspects as needed. The concessionaire also presents applications on behalf 
of clients, similar to any other agent31.  

In Bulgaria and Cyprus applicants may choose to employ consultants or lawyers to advise on 
the  preparation  of  the  necessary  documents;  they  are  however  not  formally  part  of  the 
procedure.  Their  role  is  limited  to  explaining  the  procedure,  facilitating  or  acting  as 
representatives.  In  July  2018  a  specific  Registry  for  investor  citizenship  scheme  service 
providers (e.g. accountants, law firms, estate agents) was set up in Cyprus. Service providers 
must meet certain admission criteria (for example, submission of a clean criminal record) to 
be  entered  on  the  register  and  must  comply  with  a  Code  of  Conduct32.  Service  providers 
cannot submit applications for naturalisation unless registered.  The Code of Conduct includes 
guidelines for the promotion of the Cypriot investor citizenship scheme, including a ban on 
advertising the scheme in public places.   

25   Council of Ministers’ Decision 906/2018.  
26   Article 25 of the Maltese Citizenship Act. 
27    The Regulator reverts back to the respective agent with his findings. 
28   Article 25B of the Maltese Citizenship Act. 
29   Regulation 4(3) of LN 47/2014. 
30   LN 47/2014. 
31   Consultation (in writing) with national stakeholder (Identity Malta representatives, competent authority, 15 

March 2018), Information gathered by research for the Study, ibid, note 1. 

32   Both the applicant and the registered service provider have to submit a signed declaration confirming good 
practice in providing the service and that applicant is fully informed about the procedures of the scheme. 

6 

 
 
 
 
 
 
 
 
 
                                                           
II.5 INVESTMENT REQUIRED: TYPE AND AMOUNT 

All three Member States operating investor citizenship schemes require the applicant to make 
different types and minimum levels  of investment.   In Bulgaria, an overall investment  of 
EUR  1  million  is  requested  under  its  fast-track  investor  citizenship  scheme.  In  Cyprus,  a 
minimum investment of EUR 2 million is necessary, together with ownership of property in 
Cyprus.  In  Malta,  a  contribution  of  EUR  650,000  must  be  paid  into  a  national  investment 
fund, together with an investment of EUR 150,000 and a requirement to own or rent property 
in Malta. In Cyprus and Malta, additional investments for family members are required. 

Various  investment  options  can  be  observed  among  the  three  Member  States  operating 
investor  citizenship  schemes:  capital  investment33;  investment  in  immovable  property34; 
investment in government bonds35; and one-off contributions to the State budget36.  

Table 2 below provides an overview of the investment requirements in Bulgaria, Cyprus and 
Malta. 

Table 2 Comparative overview of the types of investment in investor citizenship schemes37  

MS 

Investment 

BG 

Type of investment 
Shares, OR bonds and 
treasury bills, OR, ownership 
of company owned in more 
than 50% by 
State/municipality, OR 
shares owned by 
State/municipality, OR 
Bulgarian intellectual 
property OR rights under 
concession contracts 
Licensed credit institution 
under trustee agreement 
In capital of Bulgarian 
trading company  
Bulgarian commercial 
company awarded Class A, B 
or priority investment project 

Period for which 
the investment 
must be 
maintained 
  No specific 

timeframe within 
which the 
investment must 
be maintained but 
foreign investors 
must submit 
annual 
declarations on 
the maintenance 
of the investment 
(any of the types) 

  Revoking 

naturalisation is a 
possibility but not 
for reasons 
concerning the 
maintenance of 
the investment  

Type of scheme 
Ordinary  Fast-track 
EUR 
500,000 

Increase to EUR 1 
million OR 

invested no less than 
EUR 500,000 in the 
capital of a Bulgarian 
commercial company 
for a priority 
investment project 

N/A 

Have maintained, for at 
least one year since 
receipt of permanent 
residence permit on 
grounds of such 
investment, investments 

EUR 
500,000 
EUR 3 
million 
Depends 
on type of 
company 

33   Under the capital model, the requirement is to invest a definite sum either in (i)  a company (BG, CY) or 
(ii) credit or financial institutions instruments such as investment funds or trust funds (BG, CY, MT).  

34   This model requires buying or renting a real estate property of a definite value (CY, MT).  
35   Bonds are purchased from the governments by the investors (BG, MT).  
36   Maltese legislation requires a “contribution” be paid to the Maltese government, which is deposited in the 

National Development and Social Fund. 

37   For the purposes of this Table, the term ‘investment’ covers any pecuniary disbursement required as part of 

the process for obtaining residence under the investors’ residence scheme. 

7 

 
 
 
 
 
 
 
 
 
 
                                                           
MS 

Investment 

made and put into 
operation at above the 
minimum threshold for 
issuance of a Class A 
investment certificate 
under the Investments 
Promotion Act 
N/A 

EUR 
250,000 

Financial threshold 
EUR 2 million 
+ Permanent privately-owned 
residence min. EUR 500,000 
(+VAT) 

CY   Main 

applicant 

Bulgarian commercial 
company owned in no less 
than 50% by investor 
Type of investment38 
Real estate 
Company40 
Alternative Investment Funds 
or financial assets of Cypriot 
companies or Cypriot 
organisations that are 
licensed by CySec 

Family 
members 

Permanent privately-owned residence min. EUR 500,000 (+VAT) 
(except minor children) 

MT  Main 

Type of investment 

applicant 

Residential immovable property AND 

Period for which 
the investment 
must be 
maintained 

  Real estate, 

CySec39 licensed 
investment or 
combination of 
all investments: 
at least three 
years 

  Company: N/A 
  Privately-owned 

property: 
permanently 
Privately-owned 
property: 
permanently 
The investment and 
the immovable 
property must be 
kept for at least five 
years41 

Financial 
threshold 
Minimum EUR 
350,000 
(owned) OR 
minimum EUR 
16,000 per 
annum (rented) 
EUR 150,000 
EUR 650,000 

Family 
members  

Investments42 AND 
Contribution 
Contribution: 
  Spouse EUR 25,000 
  Unmarried children between 18 and 26 years of age EUR 50,000 
  Minor children EUR 25,000 

38   A  combination  of  the  investments  admitted  under  the  Cypriot  scheme  is  allowed,  provided  that  the  total 

investment amounts to at least EUR 2 million. 

39   Cyprus  Securities  and  Exchange  Commission  (CySEC)  is  the  independent  public  supervisory  authority 
responsible for the supervision of the investment services market and transactions in transferable securities 
carried out in the Republic of Cyprus. https://www.cysec.gov.cy/en-GB/cysec/vision-mission/ 

40   With proven physical presence in Cyprus, with significant activity and turnover and employing at least five 
Cypriots  or  citizens  of  EU  Member  States.  The  number  of  employees  must  increase  if  more  than  one 
applicant  invests  simultaneously  or  almost  simultaneously  in  the  same  business  or  company.  The 
employees of the companies need to have legally and continuously resided in Cyprus during the five years 
preceding the application submission.   
41   Regulation 7(5) and (6) of LN 47/2014. 
42   Among others, in stocks, bonds, securities, special purpose vehicles or other investment as provided from 

time to time by Identity Malta by means of a notice in the Gazette. 

8 

 
 
 
                                                           
In  addition  to  the  investment  requirement,  applicants  must  also  pay  non-refundable 
administrative  fees  as  part  of  the  application  process.  Cyprus  and  Malta  have  significantly 
higher fees than Bulgaria and foresee specific fees for applications from family members. 

II.6 RESIDENCE OR OTHER GENUINE LINK CRITERIA 

In all three Member States, there is  a formal requirement of prior residence in order for the 
foreign  investor  to  qualify  for  the  investor  citizenship  schemes,  with  the  issuance  of  the 
corresponding residence permit. Merely holding a residence permit for the required timeframe 
is  sufficient  to  qualify  for  the  investor  citizenship  scheme.  However,  effective  residence, 
meaning physical presence for a regular and extended period in the territory of the  Member 
State concerned, is not required. 

In  Malta,  the  applicant  must  be  physically  present  to  provide  biometric  data  for  the  e-
Residence Card and to take the oath of allegiance)43. A personal interview with the applicant 
may  also  be  required  in  Malta.    In  Bulgaria,  the  applicant's  presence  is  required  for  the 
submission of the application for citizenship and in Cyprus for the collection of the residence 
permit.  

In  Malta,  the  e-Residence  card  must  have  been  held  for  at  least  12  months  preceding  the 
issuance  of  the  certificate  of  naturalisation:  the  applicant  is  described  as  having  “effective 
residence status” during this period. In Cyprus, the applicant must hold a residence permit for 
at least 6 months before the naturalisation certificate can be issued. In Bulgaria, the applicant 
must  hold  a  permanent  residence  permit  for  five  years  (ordinary  scheme)  or  one  year  (fast-
track  scheme)  in  order  to  be  able  to  apply  for  Bulgarian  citizenship.  Foreign  investors  can 
apply  directly  for permanent  residence (which  grants  an unlimited  right of residence) under 
the investor residence scheme (see section III.5). 

The study44 looked for other factors, besides physical residence, which might be said to create 
a  link  between  the  applicant  for  citizenship  and  the  country  concerned.    In  Bulgaria  the 
applicant must undergo an application interview, but is exempt from the conditions of being 
proficient  in  the  Bulgarian  language  or  from  showing  knowledge  of  public  life  in  Bulgaria.  
The  Cypriot  authorities  consider  that  the  investment  in  Cyprus  is  itself  a  sufficient  bond 
between  the  applicant  and  Cyprus:  under  the  relevant  Council  of  Ministers  decision,  the 
residence  criterion  required  under  its  ordinary  naturalisation  procedure  is  replaced  by  an 
investment criterion.  Applicants for Maltese citizenship in the final stage of the naturalisation 
process are asked about their links with Malta.  Applicants are asked to have boarding passes 
showing  travel  to  Malta,  or  if  they  have  other  evidence,  for  instance  that  they  donated  to 
charitable  organisations,  have  membership  of  a  local  sports,  cultural  or  social  club  or  pay 

43  

44  

Information confirmed through consultation with national stakeholder (Identity Malta, competent authority, 
8 March 2018), obtained for the purposes of the Study, ibid, note 1.  The Maltese authorities also pointed 
out  that,  regarding  the  property  investment  requirement,  there  are  spot  checks  on  properties  and  a 
compliance  form  must  be  presented  to  the  IIP  on  a  yearly  basis,  signed  by  both  the  applicant  and  the 
responsible agent). 
Ibid, note 1. 

9 

 
 
 
 
 
 
 
                                                           
income tax to the Maltese Inland Revenue Department 45.  Applicants are also encouraged to 
set up a business in Malta. 

II.7 CRIMINALITY AND SECURITY CHECKS 

In all three Member States with investor citizenship schemes, checks are carried out to ensure 
that  applicants  and  their  dependants  are  not  a  potential  threat  to  national  security,  public 
policy  or  public  health.  The  way  such  checks  are  carried  out  is  highly  discretionary  and 
guidelines,  legislation  or  other  information  concerning  the  actual  practices  involved  was 
scarce.  The study could not therefore identify, for example, exactly how a person is identified 
as a threat to national security.  

In Malta, the checks are made on the criminal background of the main applicants and their 
dependants  over  12  years  of  age.  The  checks  are  carried  out  on  the  basis  of  police  records 
from the Maltese police and/or from the competent authorities in the country of origin and in 
the country or countries of residence where the applicant has resided for more than six months 
during the last ten years. The requirement to prove a clean criminal record may be waived in 
exceptional  circumstances,  where  the  competent  authority  considers  such  a  certificate 
impossible to obtain. For instance, if the competent authority in the country of origin would not issue 
certificates for short or intermittent stays. In those cases, a sworn affidavit from the applicant and 
any dependants, declaring a clean criminal record, will suffice.  

The Maltese authorities consult INTERPOL and Europol databases as part of a four-tier due 
diligence  process  covering:46  know-your-client  due  diligence  checks  by  the  agent  and  the 
MIIPA  (see  section  on  anti-money  laundering  checks  below);  clearance  by  the  police 
authorities; a check for completeness and correctness of the application and verification of the 
documents  submitted;  and  an  outsourced  due  diligence  check  whereby  the  MIIPA 
commissions two reports from international companies on every IIP application47.  The study 
was  not  able  to  obtain  information  about  any  use  made  by  the  Maltese  authorities  of  EU 
databases, including the Schengen Information System (SIS).  Individuals, who are nationals 
or  residents  of  Afghanistan,  Iran  and  the  Democratic  People’s  Republic  of  Korea,  or  with 
significant  ties  to  these  countries,  are  excluded  from  the  Maltese  IIP.  Also  excluded  are 
citizens  from  countries  which  are  subject  to  a  U.S.  travel  ban  and  persons  who  have  been 
denied  a  visa  by  a  country  with  whom  Malta  has  a  visa-free  travel  agreement,  whereas 
applicants  showing  on  any  other  sanctions  or  watch  lists  must  be  reported  by  agents  to  the 
Malta Individual Investor Programme Agency48.. 

In Cyprus, applicants must submit a criminal record report from his/her country of origin and 
(if  different)  country  of  residence,  which  must  be  dated  no  more  than  90  days  prior  to 

45   See  Deliverable  B.1  of  the  Study,  ibid,  Office  of  the  Regulator  Individual  Investor  Programme  (ORiip), 
Fourth Annual Report on the Individual Investor Programme of the Government of Malta (1st July 2016 – 
30th June 2017), November 2017, p. 31: 
https://oriip.gov.mt/en/Documents/Reports/Annual%20Report%202017.pdf  

46   Further details available at: https://iip.gov.mt/due-diligence/  
47  

Information gathered through consultation with national stakeholder (Identity Malta, competent authority, 8 
March 2018). This is in line with Regulation 7(2) of LN 47/2014 that states that the ‘due diligence checks 
shall be of a four-tier nature’ without further specification. 

48   Maltese Individual Investor Programme Handbook 2018. Also excluded are persons who have been denied 

a visa by a country with whom Malta has a visa-free travel agreement. 

10 

 
 
 
 
 
 
 
                                                           
submission. The Cypriot police also undertake a search in both Europol’s and INTERPOL’s 
databases49. The investor’s name and family members’ names must not be included in the list 
of persons whose assets, within the boundaries of the European Union, have been frozen as 
the  result  of  sanctions.  In  addition,  according  to  the  new  rules  introduced  in  July  201850, 
applicants,  who  submit  their  claims  via  a  service  provider,  are  required  to  submit  a  due 
diligence  report  issued  through  an  internationally  accepted  database  (for  example  World-
Check51,  Lexis  Diligence52,  Regulatory  DataCorp  Inc.53,  etc.).    In  cases  where  there  are 
concerns regarding national security, the application is additionally evaluated by the Central 
Intelligence Agency of Cyprus.  Cyprus is not connected to the Schengen Information System. 

In  Bulgaria,  legislation  requires  the  applicant  to  present  a  clean  criminal  record  certificate 
and  a  document  showing  that  no  criminal  proceedings  are  pending  or  ongoing  against  the 
applicant.  The Council for Citizenship gives an opinion on citizenship requests, following a 
written statement by the Ministry of the Interior and the State Agency for National Security 
(SANS).  The  latter  carries  out  checks  on  all  applicants  for  Bulgarian  citizenship  (including 
those applying through investor schemes) within the scope of its competence, such as police 
intelligence or police record databases. The competences of SANS include counter-terrorism, 
counter-intelligence,  and  combatting  organised  crime  and  corruption54.  There  is  no  publicly 
available  information  about  the  exact  information  databases  checked  and  the  internal 
regulations  of  SANS  –  stipulating  the  specific  databases  to  be  checked  –  are  classified55.  
While Bulgaria is not  yet part of the ‘Schengen area’, it has however full access to the SIS, 
since August 2018. No information was available concerning whether the authorities use SIS 
to  check  applicants  for  citizenship.  No  information  was  available  on  the  Bulgarian  policy 
concerning persons subject to EU restrictive measures. 

II.8 ANTI-MONEY LAUNDERING MEASURES VIS-À-VIS THE INVESTMENT 

Regarding checks on the origin of funds, all EU Member States56 have notified transposition 
measures  for the Anti-money  Laundering Directive (“AMLD”).57 Under this  legislation, the 
obliged  entities  (inter  alia,  credit  and  financial  institutions,  notaries  and  lawyers,  and  real 

49  
50 

51  
52  
53  
54  

55  

Information provided by the Ministry of Interior Officer on 29 May 2018. 

http://www.moi.gov.cy/moi/moi.nsf/all/07F0364738A716E4C22582C40023E6C0/$file/CYPRUS%20INV
ESTMENT%20PROGRAMME_13.9.2016.pdf?openelement  
https://risk.thomsonreuters.com/en/products/world-check-know-your-customer.html  
https://www.lexisnexis.com/en-us/products/lexis-diligence.page  
https://rdc.com/  
Information  gathered  through  consultation  with  national  stakeholder  (representative  of  the  Migration 
Directorate, competent authority, 7 March 2018). 
Information  gathered  through  consultation  with  national  stakeholder  (representative  of  the  Migration 
Directorate, competent authority, 7 March 2018). 

56   Except  for  Romania.  Source:  Eur-lex,  ‘National  transposition  measures  communicated  by  the  Member 

States concerning Directive (EU) 2015/849’ available at: 
https://eur-lex.europa.eu/legal-content/EN/NIM/?uri=celex:32015L0849 

57   Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention 
of  the  use  of  the  financial  system  for  the  purposes  of  money  laundering  or  terrorist  financing,  amending 
Regulation  (EU)  No  648/2012  of  the  European  Parliament  and  of  the  Council,  and  repealing  Directive 
2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (Text 
with EEA relevance), available at:  
https://eur-lex.europa.eu/legal-content/En/TXT/?uri=CELEX%3A32015L0849.  

11 

 
 
 
 
 
                                                           
estate agents)58 must carry out customer due diligence measures59, which include identifying 
the person with  whom a business  relationship60 is  established (e.g. opening  a bank account, 
money  transfers  of  a  certain  amount,61  legal  advice  provided  in  carrying  out  a  business 
transaction such as buying immovable property, etc.), identifying the final beneficiary of the 
company or trust that carries out such transaction (‘beneficial owner’) and checking the origin 
of  funds.  The  obliged  entities  are  not  required  (or  even  encouraged)  to  communicate  this 
information  to  the  State’s  competent  authorities;  however,  they  must  do  so  when  there  is  a 
suspicion  that the funds involved in  a business  relationship/transaction are, or might  be, the 
proceeds  of  criminal  activity  or  related  to  terrorist  financing  (by  filing  the  corresponding 
‘Suspicious Transaction Report’ to the Financial Intelligence Units62)63. Obliged entities must 
do  this  on  their  own  initiative  under  the  anti-money  laundering  legislation.  Obliged  entities 
must  also  provide  the  Financial  Intelligence  Unit  at  request  with  all  necessary  information. 
Furthermore,  Member  States  must  hold  adequate,  accurate  and  current  information  on  the 
beneficial  ownership  of  legal  entities  and  trusts,  including  the  details  (nature  and  extent)  of 
the  beneficial  interests  held,  in  a  central  register  (‘Beneficial  Ownership  Register’).  This 
information  must  be  provided,  inter  alia,  to  other  Member  States’  competent  authorities64. 
Formally,  there  is  no  obligation  on  the  bodies  involved  in  carrying  out  the  checks  on  the 
origin  of  funds  in  investor  schemes  to  communicate  to  the  Member  States’  competent 
authorities the results of these checks unless there is a suspicion. However, in practice some 
cooperation exists in relation to investor citizenship schemes. 

Identity  Malta65,  as  part  of  the  consultation  carried  out  in  the  study,  confirmed  that  to  the 
extent possible the due diligence definitions and procedures of the AMLD are followed in the 
four-tier process of due diligence it uses.  It is obliged by legislation to verify the source of all 
funds  paid  by  applicants  for  citizenship66.  The  main  applicant  must  confirm  that  his/her 
‘wealth has been obtained from completely legitimate sources, and is not, whether directly or 
indirectly, derived from the proceeds of criminal activities of any kind’. The main applicant 
must also submit administrative documentation, ‘Form SSFW – Statement of Source of Funds 
and Wealth’67, accompanied by bank statements for the previous three months for the account 
from which funds for the IIP are being remitted68.  All information in relation to the source of 
wealth must be triangulated before a piece of information is considered verified – the MIIPA 
seeks verification from three independent sources: the applicant and two independent service 
providers69. 

58   Article 2 of Directive (EU) 2015/849. 
59   Articles 10-24 of Directive (EU) 2015/849. 
60  

‘Business relationship’ is defined in Article 3(13) of Directive (EU) 2015/849 as ‘a business, professional 
or  commercial  relationship  which  is  connected  with  the  professional  activities  of  an  obliged  entity  and 
which is expected, at the time when the contact is established, to have an element of duration’. 

61   Article 11(b) and (c) of Directive (EU) 2015/849. 
62   Article 32 of Directive (EU) 2015/849. 
63   Article 33 of Directive (EU) 2015/849. 
64   Article 30 of Directive (EU) 2015/849. 
65    The due diligence checks are currently made by the Malta Individual Investor Programme Agency; at the 

time the interviews for the Study were conducted, the body in charge was Identity Malta. 

66   Regulation 7(4) of LN 47/2014. 
67   Form SSFW: https://iip.gov.mt/wp-content/uploads/2018/08/MIIP-Form-SSFW3.pdf  
68  

Identity  Malta  Agency,  ‘Malta  Individual  Investor  Programme  Checklist  and  Guidelines’,  Version  2.0  – 
2015, pp. 14/15. 
Information gathered through consultation with national stakeholder (Identity Malta, competent authority, 8 
March 2018). 

69  

12 

 
 
 
 
                                                           
The Cypriot legal framework on investor citizenship schemes makes direct cross-reference to 
the anti-money laundering legislation. This requires Cypriot Banks’ compliance departments 
to implement due diligence measures to verify and validate the origin of the funds used in the 
investment. This is done based on the proof (bank transfer receipts) that must be submitted by 
all applicants (investor and family members) that the transactions were made through Cypriot 
banks  from  a foreign country to  the Cypriot bank account  of the seller/company/investment 
fund.  The  due  diligence  costs  are  borne  by  the  applicant70.  In  cases  where  information  is 
located  that  the  applicant  might  be  implicated  in  financial  crime,  the  application  is  sent  for 
evaluation to the Cypriot Financial Intelligence Unit.  

In  Bulgaria,  the  checks  on  the  origin  of  funds  (in  accordance  with  the  Bulgarian  Law  on 
Measures  against Money  Laundering) is  carried out  by the  Invest  Bulgaria Agency71, in  the 
procedure  to  obtain  a  permanent  residence  permit  (which  is  a  prerequisite  for  applying  for 
citizenship  under  the  investor  scheme).  In  this  procedure  the  applicant  must  provide  a 
declaration of the origin of funds in compliance with the anti-money laundering law72. As part 
of  the  application  for  citizenship  that  then  follows,  the  Citizenship  Directorate  and  the 
Citizenship Commission verify whether or not the declaration and checks carried out by the 
Invest Bulgaria Agency are valid. 

II.9 INFORMATION ABOUT WHO OBTAINS CITIZENSHIP UNDER THESE 
SCHEMES 

Under none of the three investor citizenship schemes is information systematically available 
about the people who successfully obtain citizenship via this route, or about their origins. In 
neither Bulgaria nor Cyprus is there any legislative requirement to publish information about  
people granted citizenship as a result of their investor schemes73. On the other hand, Malta’s 
IIP law contains  a disclosure obligation requiring  yearly publication within the Government 
Gazette  of  the  names  of  all  persons  who  during  the  previous  twelve  calendar  months  were 
granted Maltese citizenship by registration or naturalisation including those persons who were 
granted Maltese citizenship under the IIP74. The Maltese government first published the list of 
persons  naturalised  as  Maltese  citizens  between  July  2013  and  December  2014  in  the 
Government  Gazette  of  31  July  2015.    It  subsequently  published  lists  in  the  Government 
Gazette  of  22  December  2017  (figures  for  2015-2016)  and  21  December  2018  (figures  for 
2016-2017)75. The published lists do not  distinguish between citizenship obtained under the 

70   Council of Ministers’ Decision 906/2018. 
71   The Invest Bulgaria Agency is an executive agency of the Bulgarian Minister of Economy and supports the 

Minister in the application of the state policy in the field of encouragement of foreign investment. 
72   Article 39, paragraph 6 of the Regulations for the Application of the Foreign Nationals in Bulgaria Act. 
73   The Regulator of the Maltese IIP publishes annual reports, which contain figures concerning the numbers 
of applications received, the regions of the world from which they come and the numbers of applications 
approved and turned down.  See for example the Fifth Annual Report on the IIP, November 2018. 

74   Regulation 14(2) of LN 47/2014. 
75   The Malta Government Gazette, 31 July 2015, Government Notice 751 – Persons Naturalised/Registered as 
Malta: 

Citizens 
https://www.gov.mt/en/Government/DOI/Government%20Gazette/Documents/2015/07/Government%20G
azette%20-%2031%20July.pdf;  The  Malta  Government  Gazette,  22  December  2017,  Government  Notice 
Malta: 
1434 
https://www.gov.mt/en/Government/DOI/Government%20Gazette/Documents/2012/12/Government%20G
azette%20-%2022nd%20December.pdf;  The  Malta  Government  Gazette,  21  December  2018 

Naturalised/registered 

Citizens 

Persons 

as 

of 

of 

– 

13 

 
 
 
 
 
                                                           
 
IIP  and  other  routes  to  citizenship,  such  as  marriage76.  In  addition,  the  lists  are  sorted  in 
alphabetical  order  by  first  name  meaning  that  it  is  not  evident  where  whole  families  have 
obtained citizenship or where it is individual applicants77. There are no details published by 
Malta of the origins of the successful applicants.  Eurostat figures published in 2018 on the 
acquisition of citizenship in the EU show however that, while the nationality of the applicants 
for  citizenship  by  investment  are  not  known,  the  largest  group  of  persons  naturalised  by 
Bulgaria,  Cyprus  and  Malta  are  Russian  citizens78.  As  regards  the  number  of  applications 
granted, Cyprus and Malta both have caps on the numbers of applicants who can benefit from 
their investor citizenship schemes. The Cypriot Government, as of 2018, decided to limit such 
citizenships  to  700  per  year79.  In  Malta,  the  number  of  successful  main  applicants  (thus 
excluding dependants) is capped at 1,800. However, the Maltese authorities are in the process 
of  updating  the  law  and,  following  a  public  consultation,  increasing  the  cap  for  main 
applicants by another 1,800.  Bulgaria imposes no cap on the number of foreign investors that 
can apply for citizenship.  

III. INVESTOR RESIDENCE SCHEMES 

III.1 INTRODUCTION: WHAT ARE RESIDENCE INVESTOR SCHEMES? 

In  a  very  similar  fashion  as  that  developed  for  citizenship  investor  schemes,  residence 
investor  schemes  are  any  legislative,  policy  or  administrative  initiative  aiming  to  enhance 
investment by third-country nationals by granting facilities to obtain residence in the Member 
State  concerned.  While  some  of  the  schemes  were  adopted  in  the  early  2000s80,  others  are 
more recent and can be seen as a reaction to the economic recession started in 200781. 

Schemes that fall inside the scope of this report are those for which the financial investment, 
in  whatever form  it materialises, is  the main and primary  condition  for entry  and residence, 
irrespective of the name of the scheme under national legislation82. This means that schemes 
where investing is possible but is not the main and primary condition of the entry of foreign 
individuals  have  been  excluded  from  the  analysis.  This  line  is  required  to  identify  the 
sometimes  very  subtle  difference  between  self-employed  or  entrepreneurs  schemes  and 
investor  schemes.  Some  self-employed  or  entrepreneurs  schemes  require  an  investment  but 
this comes as an additional admission condition to the main one which is the setting up of a 
business or the presentation of a business plan in this perspective.83 Against this background, 

https://www.gov.mt/en/Government/DOI/Government%20Gazette/Documents/2018/12/Government%20G
azette%20-%2021st%20December.pdf  
Identity  Malta  Agency,  ‘Malta  Individual  Investor  Programme  Checklist  and  Guidelines’,  Version  2.0  – 
2015, p. 5. 

76  

77   For  further  observations  on  this  see  Daphne  Caruana  Galizia’s  Running  Commentary,  ‘Government 
2015: 
naturalised 
publishes 
https://daphnecaruanagalizia.com/2015/08/government-publishes-list-of-citizens-naturalised-last-year/ 

citizens 

August 

year’, 

last 

list 

of 

78   Eurostat news release 59/2018 of 9 April 2018. 
79   Council of Ministers’ Decision 906/2018.  
80   RO adopted a scheme in 2003, LT in 2004 and BG in 2005. 
81   The UK adopted a scheme in 2008, EE in 2009; LV in 2010; HR in 2011; IE, SK and PT in 2012; HU, PL 
and NL in 2013; EL and ES in 2014; MT in 2015; FR and CY in 2016; IT, CZ and LU in 2017. The HU 
scheme was suspended in March 2017. 

82   This  is  why,  for  instance,  the  Romanian  scheme,  which  is  according  to  the  national  legislation  “for 

1 

commercial purposes” is included.  

83   For more information on this type of legal migration channel, see the Volume II of the Study for an impact 
assessment on a proposal for a revision of Council Directive 2009/50/EC (“EU Blue Card Directive”) on 

14 

 
 
 
 
                                                                                                                                                                                     
 
the following Member States are part of the scope of the Report: BG, CY, CZ, EE, EL, ES, 
FR, HR, HU84, IE, IT, LT, LU, LV, MT, NL, PL, PT, RO, SK and the UK. 

III.2 INSTITUTIONAL STRUCTURE OF THE SCHEMES 

In most Member States, the competent authorities running the schemes are the authorities in 
charge of migration issues, i.e. the Ministry of Interior (BG, CY, CZ, EL, HU, LV, PT and the 
UK),  regardless  of  their  specific  denomination.  For  instance,  in  Bulgaria,  the  “Migration 
Directorate” is in charge of the scheme, in Hungary, the “Immigration and Asylum Office”, in 
Latvia  the  “Office  of  Citizenship  and  Migration  Affairs”  (OCMA)  or  in  Portugal,  the 
“Immigration  and  Borders  Service”  (SEF).  In  other  instances,  the  police  force  inside  the 
Ministry  of  Interior  (EE,  HR,  IT,  SK)  or  a  regional  (HU)  representative  of  the  Ministry  of 
Interior, or of the central government (Voivode in PL, Préfectures in FR) is involved.  

In  a  minority  of  Member  States,  the  competent  authorities  for  migration  issues  depend  on 
another  Ministry  than  the  Ministry  of  Interior  (ES:  Ministry  of  Employment  and  Social 
Affairs;  IE:  Ministry  of  Justice  and  Equality;  NL:  Ministry  of  Security  and  Justice).  Others 
have set up a dedicated agency (MT) or an agency part of a Ministry (EL: Enterprise Greece 
as part of the Ministry of Economy).  

Member  States  may  also  differentiate  between  the  decision-making  authority  and  the 
implementing  authorities  as  it  is  the  case  in  the  Netherlands  where  the  decision  making 
authority is the Ministry of Security and Justice and the Dutch Immigration and Naturalisation 
Service is the implementing authority.   

Governing  the  scheme  entails  in  most  cases  coordination  with  other  public  authorities,  in 
particular for what concerns security checks and any economic assessment if required, which 
can lead to  a double competency:  in  Luxemburg   the Ministry of Economy is  competent  to 
assess  and  issue  an  opinion  on  investments  in  a  company,  while  the  Ministry  of  Finance  is 
competent  to  assess  and issue an opinion on investments  in  a management  structure and on 
investments consisting in a deposit in a financial institution. 

Specific monitoring mechanisms and reporting obligations exist in a very limited number 
of Member States. In Spain, the law includes an obligation to prepare an annual report on the 
implementation  of  the  rules  which  is  prepared  by  the  Ministry  of  Employment  and  Social 
Affairs on a joint request of the Ministries of Foreign Affairs, Interior Affairs and Economy 
and  is  then  submitted  to  the  Council  of  Ministers.  At  present,  only  one  report  is  publicly 
available: the first report drafted after the entry into force of Law 14/2013, which was issued 
in  201585.  In Portugal, the General  Inspection of  Internal  Affairs carries out,  at  least  once a 
year,  an  audit  of  the  procedure  of  the  investment  residence  permit.  The  conclusions  and 

Admission  of  Entrepreneurs,  accessible  at:  https://ec.europa.eu/home-affairs/sites/homeaffairs/files/what-
we-do/policies/legal_migration/volume_ii_-_admission_of_migrant_entrepreneurs_en.pdf  

84   As already said, the Hungarian scheme was suspended in March 2017. 
85   MESS,  ‘Report  on  the  implementation  on  the  Section  on  International  Mobility  of  Law  14/2013  of  27 
September on the support to entrepreneurs and their internationalisation’ (Informe sobre la aplicación de la 
Sección de Movilidad Internacional de la Ley 14/2013, de 27 de septiembre, de apoyo a los emprendedores 
y su internacionalización), April 2015, available at: 
http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/ley14_2013/documentacion/Informe_anual_d
e_la_Seccion_de_Movilidad_de_la_ley_14_2013.pdf  

15 

 
 
 
 
 
 
 
 
                                                                                                                                                                                     
recommendations  are  notified  to  the  First  Commission  of  the  Portuguese  Parliament 
(Constitutional Affairs and Fundamental Rights, Freedoms and Guarantees) and are also made 
available on the Government's website. However, this website only contains one report, which 
dates back to 2014. It mentions several recommendations, issued due to some inefficiencies of 
the  procedure,  inter  alia,  the  development  of  internal  supervision  mechanisms  and  of  a 
procedures manual. Follow-up to this recommendation is unknown. 

This  means that, in  most cases,  the oversight of the scheme is  left to general  monitoring 
mechanisms, when they exist, such as Parliamentary scrutiny, administrative liability, general 
reporting  of  activities  to  the  Government,  or  access  to  documents  requests,  and  that  no 
additional and specific diligence mechanism exists (BG, CY, FR, HU86, IE87, IT, LV88, MT, 
NL, RO, UK).  

III.3 INVOLVEMENT OF NON-PUBLIC BODIES AND INTERMEDIARIES 

A very limited number of Member States has made the choice to involve private companies 
in the running of the scheme (CY, HU and MT), sometimes with a significant role (HU and 
MT).  While  in  Cyprus,  applicants  are  free  to  decide  to  present  their  application  through  an 
authorised  representative  whose  role  is  limited  to  act  as  facilitators  and  providers  of 
consultancy  services,  applications  in  Malta  may  be  submitted  to  the  competent  authorities 
only by registered agents or accredited persons. These registered agents act on behalf of the 
applicant  for  all  correspondences,  applications,  submissions,  filings,  notifications  under  the 
regulations. In Hungary, the Hungarian Parliament’s Economy Committee would authorise a 
number  of  businesses  whose  role  was  to  issue  the  residency  bonds  to  be  purchased  by  the 
applicants. Only one company could receive the authorisation to issue bonds in a given third 
country. The companies  that received  authorisation were located in the following countries: 
Grand  Cayman  (Hungary  State  Special  Debt  Fund),  Malta  (Discus  Holdings  Ltd.),  Cyprus 
(Migrat  Immigration  Asia  Ltd.,  Innozone  Holdings  Limited),  Hungary  (Arton  Capital 

86  

87  

88  

In  Hungary,  Transparency  International  Hungary,  in  collaboration  with  a  Hungarian  daily  magazine, 
‘Magyar  Nemzet’  requested  public  interest  information  pertaining  to  the  operations  of  the  companies 
authorised  to  issue  residency  bonds  and  to  establish  the  volume  of  residency  bonds  purchased  from  the 
Parliament’s  Committee  for  Economic  Affairs  and  from  the  Government  Debt  Management  Agency  in 
2016. Court litigation based on freedom of information against the Committee and against the State Debt 
Management Agency followed. The defence of both defendants was based on secrecy laws, which, in their 
interpretation, apply to the purchase of state residency bonds and prevent any information from becoming 
public.  The  litigation  was  suspended  (Nagy  Boldizsár:  In  Whose  Interest?  Shadows  Over  the  Hungarian 
Residency Bond Program, Transparency International Hungary, 2016. page 71). 
In  Ireland,  the  Irish  Naturalisation  and  Immigration  Service  has  provided  information  via  Parliamentary 
questions on the following items: the number and value of applications per annum since 2012 under each 
investment option, the number and value of immigrant investor programme applications for social housing 
investment and nursing home investment in 2017, the criteria against which applications are evaluated, the 
number of applications approved under the investor scheme, the  investment funds for  which applications 
under  the  investor  scheme  have  been  approved  to  date,  the  four  investment  options  available  under  the 
programme, the amount of money invested in the scheme, the members of the Evaluation Committee. 
In  Latvia,  as  any  State  institution,  the  OCMA  reports  annually  about  its  work  to  the  Government.  The 
Office prepares a general overview of its work and detailed overviews per subject matter. The most recent 
report on the investors’ residence scheme for the period from 1 July 2016 to 30 June 2017 was presented to 
the Government in November 2017. See the OCMA 2017 Report on progress and results of implementing 
Article  23(1),  points  3,  28,  29,  30  and  31  of 
Immigration  Law,  available  at 
http://tap.mk.gov.lv/lv/mk/tap/?pid=40441522  

the 

16 

 
 
 
 
 
                                                           
Hungary),  Russia  (VolDan  Investments  Limited),  Liechtenstein  (S  &  Z  Program  Limited), 
and Singapore (Euro-Asia Investment Management Pte Ltd.). 

III.4 INVESTMENT REQUIRED 

The  analysis  has  led  to  conclude  on  the  existence  of  a  wide  range  of  schemes,  which  is 
reflected  in  the  investment  requirement.  While  investment  is  also  the  core  requirement  of 
residence investors’ scheme, the nature and amount of this investment vary much more in the 
context of residence than of citizenship schemes.  

Five  types  of  investment  options  have  been  analysed.  These  are  not  necessarily  mutually 
exclusive,  some  Member  States  allowing  for  different  types  of  investment  and  their 
combination89:  

  Capital  investment:  under  this  model,  the  requirement  is  to  invest  a  definite  sum 
either in  a company90 (BG, EE, ES,  FR, HR,  IE,  IT,  LT,  LU,  LV, NL, PL, PT, RO, 
SK, UK) or in credit or financial institutions instruments such as investment funds or 
trust funds (BG, CY, EE, ES, IE, LU, LV, NL, PT). 

  Investment  in  immovable  property:  this  model  requires  to  buy,  or  to  rent91,  a  real 

estate property of a definite value (CY, EL, ES, IE, LV, MT, PT). 

  Investment  in  Government  bonds:  bonds  of  a  definite  value  are  purchased  to  the 
Government by the investors. These bonds imply a repayment on a maturity date, with 
a definite interest rate (BG, ES, HU, IT, LV, MT and UK). 

  Donation or endowment of an activity contributing to the public good: capital is 
invested  in  a  public  project  benefiting  the  arts,  sports,  health,  culture  or  education 
philanthropic donations artistic and research activities (IE, IT, PT). 

  One-time  contribution  to  the  State  budget:  this  requires  paying  directly  a  certain 
amount  of  money  to  the  State  (MT,  LV)  and  does  not  entail  repayment  contrary  to 
bonds.  

In  addition  to  these,  a  non-financial  investment  such  as  the  creation  of  jobs  or  the 
contribution  to  the  economy  may  be  required  as  an  additional  criterion  to  one  of  the  afore-
listed criteria (creation of a certain number of jobs in BG, CZ, ES, FR, HR, LU, LV, NL, PL, 
PT, RO, SK and contribution to the economy in BG, CZ, EL, ES). While the fulfilment of the 

89   BG, CY, EE, EL, ES, FR, IE, IT, LV, LU, MT, NL, PT, RO, UK. 
90   This  is  irrespective  of  the  role  that  the  investor  has  in  the  company  or  title  under  which  the  investor 

participates in the company – owner, shareholder, manager. 
In Greece, renting is possible through 2 options: 

91  

a)  To make an agreement with a minimum term of ten years for the lease of hotel accommodation or 
furnished tourist residences in tourist accommodation complexes which are worth minimum EUR 
250,000 or; 

b)  To make a time sharing agreement (lease) based on the provisions of Law 1652-1986 for property, 
which is worth a minimum of EUR 250,000. According to Law 1652-1986, such an agreement is 
the commitment of the lessor to grant, each year, to the lessee, for the duration of the timeshare, the 
use of the tourist accommodation and to provide to them the relevant services for the determined 
period according to the contract, and the lessee must pay the agreed rent. 

In Malta, renting means a property taken on lease for a rent of not less than EUR 12,000 per annum for a 
property situated in Malta or not less than EUR 10,000 per annum for a property situated in the south of 
Malta or in Gozo (Regulations 2 and 5(3) of LN 288/2015). 

17 

 
 
 
 
 
 
 
                                                           
condition requiring the creation of a certain number of jobs is straightforward92, the condition 
of  contribution  to  the  economy  leaves  more  discretion  to  the  authorities.  In  addition,  the 
criterion  of  “contribution  to  the  economy”  has  different  forms:  it  must  be  “specific  to  an 
economically  disadvantaged  region”  in  Bulgaria;  the  investment  must  be  made  “in  the 
interests of the country or a region” in the Czech Republic; the Greek legislation provides for 
a  “strategic  investment”  without  defining  the  concept;  Spain  requires  a  business  project  of 
“general interest”. 

The financial investment can therefore be “passive” when it is made on  a stand-alone basis: 
this  is  the  case  for  the  bonds  system,  the  immovable  property  and  the  capital  investment 
model. It can be “active” when it is done in connection to a more tangible economic objective: 
this  is  the  case  for  capital  investment  in  companies,  donations  or  endowment  of  an  activity 
contributing to the public good. 

Differences exist also concerning the amount of the investment required by law. Regarding 
the  financial  threshold  of  the  investment,  most  Member  States  have  different  financial 
thresholds that apply depending on the nature of the investment (BG, CY, EL, ES, IE, IT, LV, 
MT,  PT  and  RO)  or  the  type  of  scheme  when  they  have  several  (EE,  HR,  LT).  In  the 
remaining  Member  States  (CZ,  FR,  HU,  NL  and  UK)  the  financial  threshold  is  the  same, 
regardless of the nature of the investment. 

Member  States  can  be  classified  according  to  the  investment  threshold  they  apply.  For 
Member  States  having  different  investment  options,  only  the  minimum  and  the  maximum 
thresholds are taken into account93: 

  Member  States  without  a  financial  threshold:  EL94  (“strategic  investment”),  PL 

(“sufficient means to generate income”). 

  Member States which require a very low investment (below EUR 100,000): EE, HR, 

LT, LV. 

  Member States which require a low investment (EUR 100,000 – less than 500,000): 

BG, EL, FR, HU95, IE, LT, LV, MT, PT, RO. 

  Member  States  which  require  a  medium  investment  (EUR  500.000  –  less  than  1 

million): CY, ES, MT, LU. 

  Member  States  which  require  a  high  investment  (EUR  1  million  –  less  than  5 

million): BG, CZ, EE, ES, IE, IT, NL, PT, RO, UK.  

  Member  States  which  require  a  very  high  investment  (over  5  million):  SK 

(permanent residence), LU. 

A  further  pecuniary  disbursement  is  the  payment  of  administrative  fees,  in  the  application 
procedure to obtain a residence permit. The amount of these fees range from EUR 30 to EUR 
11,745.30. Member States may be classified according to the following levels: 

  Member States with a fee below EUR 100: ES, HR, IT, LU, RO. 

92   The issue may become more complex if there is a requirement to maintain the jobs for a certain time. 
93   This explains that Member States may be listed several times. 
94  

In  this  case,  foreign  investors  must  obtain  a  decision  by  the  Interministerial  Committee  of  Strategic 
Investment which characterises the investment as strategic (not defined by law). 

95   As already said, Hungary suspended their scheme in April 2017. 

18 

 
 
 
 
 
 
 
 
                                                           
  Most Member States request a fee of between EUR 100 and EUR 250: BG, CZ, EE, 

LT, PL, SK. 

  Member States with a fee of between EUR 250 and EUR 500: CY, LV and FR. 
  Member States with a fee of between EUR 500 and EUR 1,000: EL. 
  Member  States  with  a  fee  above  EUR  1,000  (in  ascending  order):  IE  (EUR  1,800), 
HU96 (EUR 45,200 – 58,100), NL (EUR 2,137), PT (EUR 5,654), UK (GBP 1,623 for 
an online or post application and GBP 10,500 for a “super premium service”97), MT 
(EUR 5,500). 

III.5 RESIDENCE 

Physical  residence  of  the  foreign  investor  in  the  country  granting  residence  rights  is  not 
envisaged  uniformly  by  Member  States.  While  it  can  be  reckoned  that  investors  have 
particular needs in terms of mobility, the regime in place in some Member States can lead to 
question the mere rational of requesting residence in the said Member State. 

In a number of Member States, physical residence of the investor is not expressly required 
once the individual has obtained the residence permit (CZ, HU, LV, MT, RO, SK, UK). Other 
Member States have requirements for obtaining the permit which entail that the investor be 
physically present. This is ensured in a more or less stringent way since such provisions vary 
from  subjecting  withdrawal  of  the  permit  in  case  of  prolonged  absence  (CY98,  ES99, HR100, 
IT101,  LU102,  NL103,  RO  (permanent  residence)104,  SK105)  or  register  in  the  corresponding 

96   The applicant had to pay a so-called ‘intermediary commission’ to the companies authorised to issue the 
bonds,  and  not  to  the  State.  The  commission  varied  according  to  the  company  used  by  the  applicant  to 
purchase the bond. 

97   Under  this  service,  a  courier  collects  the  application  forms  and  documents,  staff  visits  the  applicant  to 
obtain  biometric  data  and  the  decision  on  the  application  is  usually  given  within  24  hours.  See 
https://www.gov.uk/government/publications/visa-regulations-revised-table/home-office-immigration-and-
nationality-fees-2018  

98   The foreigner cannot be absent from the territory for more than 2 years. 
99  

In Spain, it is a requirement that the foreign investor not be absent from the Spanish territory for more than 
6 months a year.  
In  Croatia,  one  of  the  reasons  for  withdrawing  the  permit  is  that  the  foreigner  has  been  abroad  for  more 
than 30 days. Exceptionally, a foreigner who, for a justified reason, leaves Croatia for up to 90 days, will 
not have his/her temporary stay suspended if he/she has previously notified the competent police authority 
or  police  station  of  her/his  departure.  If,  after  leaving  Croatia,  extraordinary  circumstances  arise,  a 
foreigner must notify Croatia’s diplomatic mission or consular office within 30 days of the occurrence of 
these circumstances.   

100  

101   The applicant cannot abandon the Italian territory for a period longer than half of the period of validity of 

the residence permit. 

102   Requirement to be physically present in the territory of Luxembourg at least 6 months per year. 
103   For at least 4 months in every 12-month period. 
104  

In Romania, the investor must not have been absent for more than 6 months at a time or 10 months in total. 
Once  permanent  residence  is  granted:  the  investor  should  not  be  granted  permanent  residence  in  another 
country,  must  not  be  absent  from  the  Romanian  territory  for  more  than  12  consecutive  months,  unless 
during this time he/she was a temporary resident in another EU Member State and must not be absent from 
Romania  for  more than  six consecutive  years, regardless of  whether or not,  during this  time,  he/she  may 
have been a temporary resident in another EU Member State. 

105   As  of  1  May  2018,  foreigners  holding  a  temporary  residence  permit  have  the  obligation  to  stay  in  the 
territory of the Slovak Republic for more than half of the time period granted for a temporary stay in one 
calendar year. Failure to do so may result in a withdrawal of the residence permit. For permanent residence, 
the holder has the obligation to notify competent authority in writing in those cases where he/she will stay 

19 

 
 
 
 
 
                                                           
 
municipal  register  (EE,  NL)  to  a  requirement  to  provide  accommodation  (EE,  ES,  FR,  IT, 
SK). 

Some  Member  States  explicitly  require  the  presence  of  the  investor  for  a  very  limited 
period  of  time,  such  as  seven  days  in  a  year  (PT),  one  day  (IE),  or  simply  the  day  the 
application  is  filed  (BG,  EL,  MT106).  Others  Member  States  on  the  contrary  focus  on 
attracting only those investors who are willing to actively reside in their country. This is the 
case  when  the  system  in  place  display  a  clear  policy  preference  for  those  who  are  actively 
engaged  in  the  business  they  invest  in  or  where  the  suspicion  that  the  individual  will  not 
reside in the country is a ground for not granting the permit (LT). 

III.6 DURATION OF STAY AND RENEWAL OF THE PERMIT 

While  in  most  Member  States,  foreign  investors  are  granted  temporary  residence  permits 
which enable the individual to  reside in  the Member State for  a limited period of time107, a 
limited number of Member States grant an unlimited right of residence on the first application 
of an investor residence permit. 

The period of validity of temporary residence permits ranges from six months to ten years. 
Six  Member  States  have  different  validity  periods  for  residence  permits,  depending  on  the 
type of investment (BG108, EL, ES, LT, LV and RO): 

  Six months: BG, ES (when the investment is made in real estate but the purchase is 
not formalised, i.e. when there is only a pre-contract with a guarantee that the purchase 
will take place); 

  One year: HR, BG, PT, HR, RO; 
  Two years: CZ (up to 2 years) ES, IE, IT, LT (small investors); 
  Three  years:  LT  (medium  investors),  LU,  NL,  PL  RO  (if  investment  exceeds  EUR 

500,000 or creates more than 50 new jobs) PL, SK and UK (leave to enter); 

  Four years: FR; 
  Five  years:  EE109,  EL110  (investment  in  real  estate  or  positive  impact  in  national 

growth and economy), HU, LV, and MT;  

  Ten years: EL (strategic investment). 

In most Member States, permanent residence is granted after 5 years (ES, HR, IE, LV, UK). 
While a longer period may be required such as in Portugal where permanent residence may 

away from the territory of the Slovak Republic continuously for more than 180 days. If the foreigner fails 
to inform the competent authority, a fine of up to EUR 300 may be imposed. 

106   To register biometric data. 
107  

In France (stays of 12 months or less), Ireland and the UK, the entry visa is the authorisation under which 
the  foreign  investor  can  also  reside  in  the  territory  of  the  Member  State,  thus  no  residence  permit  is 
required. 
In Bulgaria, the duration of the permit depends on the term of the lease, insurance, or other conditions that 
ensure that applicants meet the requirements for their stay in the country. 

108  

109   The Estonian permit may be granted for 5 years and extended for up to 10 years; however, the permit may 
be  issued  for shorter periods taking  into account evidence  on the circumstances in  which the issuance or 
extension of a residence permit is based or other relevant circumstances and whether there are any changes 
in any such circumstances. 

110   The right to reside granted under the residence permit is unlimited but the permit has to be renewed every 5 
years if the investment is in real estate property and positive impact on national growth and economy. 

20 

 
 
 
 
 
 
 
                                                                                                                                                                                     
be  requested  after  three  renewals  of  the  initial  temporary  permit  (i.e.  after  a  total  of  seven 
years  of  residence111,  some  Member  States  allow  for  a  shorter  period  of  residence.  In  the 
United Kingdom, the five-year prior residence period is reduced to two years if the individual 
invests GBP 10 million, or three years if the amount invested is GBP 5 million.  

Some Member States allow to apply directly for permanent residence (BG, CY, HU, MT, 
RO and SK). This means that investors’ residence schemes may be in certain Member States a 
fast  track  to  permanent  residence,  and  to  citizenship  acquisition.  It  is  worth  noting  that 
although  the  right  to  residence  is  unlimited  in  MT,  RO  and  SK,  the  permanent  residence 
permit must be renewed every 5 years. 

Permits granted for a definite period may be renewed. Most Member States require that the 
initial conditions for the first permit are still fulfilled (i.e. the first investment) for the permit 
to be renewed and that the duration of the renewed permit is similar to the duration of the first 
permit.  The renewed permit  allows for a longer  period of  residence in  ES, HR,  IE,  IT,  NL, 
PT.  In  Luxembourg,  the  foreign  investor  must  again  obtain  the  positive  opinion  of  the 
corresponding Ministry  when applying  for the renewal  of the permit.  Therefore,  even if the 
individual maintains the level of investment (and also work positions where required), where 
the  competent  Ministry  does  not  grant  a  positive  assessment  of  the  investment,  the  renewal 
will be denied. 

Some  Member  States  have  however  chosen  to  set  stricter  requirements.  In  Romania,  the 
investment  requirement  is  increased  upon  renewal  according  to  the  role  of  the  investor: 
associates  (LLC)  must  make  an  investment  of  EUR  50,000  and  create  10  jobs  and 
shareholders  (joint-stock  company)  must  make  an  investment  of  EUR  70,000  and  create  15 
jobs. In Latvia, investors in real estate property, business and credit liabilities have to make a 
one-time payment of EUR 5,000 and submit new evidence. Investors investing at least EUR 
50,000  must  prove  that  the  capital  company  has  paid  at  least  EUR  40,000  in  taxes  for  the 
previous financial year or at least EUR 3,000 a month for the first incomplete financial year. 
Investors investing at least EUR 100,000 must prove that the capital company has paid at least 
EUR 100,000 in taxes for the previous financial year, or at least EUR 8,300 a month for the 
first incomplete financial year. 

Other Member States have chosen to waive some of the initial conditions. In Estonia, under 
the general investor scheme, the requirement to maintain the EUR 65,000 investment can be 
waived if at least one of the following conditions is met:  the sales revenue of a company is at 
least  EUR  200,000  per  year,  or  the  monthly  social  tax  paid  in  Estonia  for  those  persons 
employed  by  the  company  is  at  least  equal  to  the  monthly  social  tax  paid  in  Estonia  for 
remuneration, equalling fivefold Estonian annual average gross wages. 

Once  resident  status  has  been  obtained,  all  Member  States  –  except  Cyprus  and  Hungary  – 
require that the investment be maintained for the whole duration of the validity of the permit.  
Failure to comply with this requirement will result in the permit being withdrawn and, thus, 
the right of residence of the foreign investor will be revoked. The Study found however that 
checks  on  the  maintenance  of  the  investment  are  not  widespread.  In  Latvia,  the  national 
legislation  provides  for  an  ‘annual  registration’  (check)  to  be  carried  out  to  ensure  that  the 
initial  conditions  under which  the  residence  permit  was  first  issued  continue  to  be  fulfilled, 

111   One year of initial residence and three renewal periods of 2 years. 

21 

 
 
 
 
 
 
 
                                                           
specifying the number of days of residence in Latvia. In Spain, the competent authority may 
carry out any checks that are considered relevant and necessary to verify that the requirements 
that  justified  the  issuance  of  the  corresponding  permit  continue  to  be  fulfilled  during  the 
period of validity of the permit. However, the frequency of these checks is not established by 
law but occur at the discretion of the competent authority. If in light of the findings of such 
checks the competent authority concludes that the conditions are no longer met, the residence 
permit will be withdrawn112. 

III.7 CRIMINALITY AND SECURITY CHECKS 

In all Member States, posing a threat to public order or State security is a ground for rejection 
of  the  permit  application.  This  legal  requirement  is  a  general  requirement  under  migration 
law.  

For  what  relates  more  precisely  to  the  specific  case  of  investor  residence  permits,  security 
checks relate generally to the background of the applicants and to the origin of the funds. Ex-
post checks may exist to verify the conditions under which the scheme was granted still exist 
during  the  validity  of  the  permit.  Overall,  the  Study  reported  that  retrieving  information  on 
how the checks are carried out proved challenging and thus, no information in this regard was 
obtained  in  some  Member  States  (BG,  IT,  LT,  LV,  SI,  SK)  or  was  not  clear  from  the 
legislation (EL and PT). 

Regarding the timing of the checks, in cases where an entry visa is required, checks can take 
place either only when applying for the entry visa (IT) or both when applying for the visa and 
then  for  the  residence  permit  (ES)113.  All  Member  States  (except  BG,  CY,  IE,  RO,  HR, 
UK114) are under an obligation to consult the Schengen Information System (SIS). 

Authorities in charge of the management of the schemes rely in this context on police forces 
and intelligence services to check the background of the applicants (BG, CY, EE, ES, HR, 
HU,  PT,  SK),  authorities  in  charge  of  health  and  employment  policies  (to  check  that  the 
applicant complies with health and, where applicable, employment requirements), as well as 
those  competent  to  report  on  the  civil  status  of  the  applicant.  These  checks  relate  to  the 
criminal record of the applicants and the veracity of the document provided by the applicants.  

112   Seventh Additional Provision of Law 14/2013. 
113  

In Spain, the consulate or diplomatic  mission responsible  for issuing the investors’ residence visa carries 
out security checks on the applicant’s background in cooperation with the Spanish police, while checks on 
the  origin  of  funds  are  carried  out  by  the  consulate  or  diplomatic  mission’s  Economic  and  Commercial 
Office  (Oficina  Económica  y  Comercial).    Such  checks  are  again  carried  out  by  the  UGE-CE  when 
processing the application for an investors’ residence authorisation.  Although the UGE-CE may draw on 
the conclusions reached by the consulate, it still carries out its own comprehensive checks in cooperation 
with the authorities competent for security and for anti-money laundering. 

114   The SIS is currently in operation in 26 EU Member States (only Ireland and Cyprus are not yet connected 
to  SIS),  though  with  different  access  rights,  and  four  Schengen  Associated  Countries  (Switzerland, 
Norway,  Liechtenstein  and  Iceland).  While  Bulgaria  and  Romania  are  not  yet  part  of  the  area  without 
internal  border  checks  (the  'Schengen  area'),  they  have  had  full  access  to  the  SIS  since  August  2018. 
Croatia,  which  is  also  not  part  of  the  Schengen  area,  has  still  some  restrictions  regarding  its  use  of 
Schengen-wide  SIS  alerts  for  the  purposes  of  refusing  entry  into  or  stay  in  the  Schengen  area.  The  UK 
operates the SIS but, as it  has chosen not to join  the Schengen area, it cannot issue or  access  Schengen-
wide alerts for refusing entry or stay into the Schengen area. Ireland is carrying out preparatory activities to 
connect to the SIS, but, as is the case for the UK, it is not part of the Schengen area and it will not be able 
to issue or access Schengen-wide alerts for refusing entry or stay. Cyprus is not yet connected to the SIS. 

22 

 
 
 
 
 
 
 
                                                           
Regarding the checks on the origin of funds, they are usually carried out by entities involved 
in  financial  transactions  (e.g.  banks,  credit  institutions,  legal  professionals  such  as  lawyers 
and  notaries,  brokers  and  real  estate  agents).  These  entities  can  be  private  or  public  and 
include  independent  professionals.  They  have  to  comply  with  the  requirements  of  the  anti-
money laundering legislation which compels the obliged entities to carry out on the source of 
funds.  The  nature  of  these  checks  differ  as  they  can  consist  in  validating  the  documents 
relating to the monies used to make the investment, such as bank transfer receipts, financial 
statements  tax  return  report,  purchase  or  lease  contract  from  the  land  or  property  registries, 
when  the  investment  is  made  up  immovable  property,  or  they  can  consist  in  a  limited 
declaration of the competent authority115. 

Ex-post checks exist in a very limited number of Member States (EE, ES, FR, LT, LV, HR). 
They consist in ad-hoc checks by the competent authorities in order to verify that the holder 
of  the  permit  still  fulfils  the  conditions  of  the  stay  during  the  validity  of  the  permit.  The 
frequency of such checks is not established by law but, rather, take place at the discretion of 
the  competent  authority.  In  Estonia,  these  ad-hoc  checks  are  performed  by  the  Police  and 
Border  Guard  Board,  in  France  by  the  Préfecture,  in  Spain  by  the  General  Directorate  on 
Migrations. Latvia carries out annual checks on the annual obligation to register the permit to 
the  Office  of  Citizenship  and  Migration  Affairs.  In  Poland,  investors  can  be  called  to  the 
Office of foreigners to present documents confirming the purpose and conditions of stay. If in 
light of the findings of such checks the competent authority concludes that the conditions are 
no longer met, the residence permit may be withdrawn. 

III.8 ANTI-MONEY LAUNDERING 

The Study showed variable practices  among Member States operating residence schemes to 
guard  against  money  laundering.  While  some  countries  require  all  payments  to  be  made 
through  their  national  banks,  which  as  “obliged  entities”  under  the  4th  Anti-Money 
Laundering Directive, must apply the necessary customer due diligence checks (CY), it also 
showed  that  some  legislations  do  not  provide  for  particular  checks  (HR,  PT).    In  Hungary, 
there  was  no  obligation  to  actually  transfer  the  money  to  the  territory,  which  had  as  a 
consequence to exclude the funds from any checks in Hungary. In Ireland, funds are double-
checked, first through evidence submitted by the country of origin of the fund, and then by the 
competent  services  in  the  Member  State.  Applicants  must  submit  documentation  from  their 
home  country  that  attests  that  all  anti-money  laundering  checks  have  been  made  and  all 
requirements  have  been  complied  with.  They  must  provide  an  explanation  of  all  of  their 
activities for the previous 12 months, including their income, investments and loans, evidence 
of the funds that are to  be used for the proposed investment, evidence of the provenance of 
those  funds  and  evidence  that  the  funds  are  transferrable  to  Ireland  and  are  convertible  to 
euros.  Evidence  of  anti-money  laundering  checks  is  double-checked  and  verified  by  the 
Evaluation  Committee  set  up  for  the  scheme  together  with  the  application  form.  The 
Migration Service have a list of specific information they require in relation to the following 
four  sources  of  funds:  business  and  investment  activities,  deeds  of  sale,  inheritance,  and 

115  

In  Portugal,  the  law  only  requires  the  applicant  to  submit  an  up-to-date  declaration  issued  within  the 
previous 45 days by the Portuguese tax and social security authorities confirming the absence of any debts 
to  those  authorities,  and  where  that  is  not  applicable,  declaration  confirming  that  the  applicant  is  not 
registered with those authorities. 

23 

 
 
 
 
 
 
                                                           
divorce settlements. If the funding has been received from an alternative source the individual 
must provide original documentation and independent supporting documentation as evidence. 

The  competent  authorities  in  charge  of  those  particular  checks  vary:  it  can  be  the  national 
Investment Agency (BG) or a Commission dedicated to anti-money laundering (ES).  

III.9 INFORMATION ABOUT INDIVIDUALS OBTAINING RESIDENCE UNDER 
THESE SCHEMES 

The  information  and  statistics  available  regarding  individuals  obtaining  residence  under  an 
investor scheme implemented by Member States are generally very scarce. This is one major 
element  accounting  for  the  lack  of  transparency  in  the  running  of  these  schemes:  while  the 
practice of Member States varies a lot in this regard, the overall situation may be depicted as 
lacking transparency. 

No  legal  obligation  to  publicly  disclose  information  on  successful  applicants  has  been 
retrieved in any Member State.  

Public statistics are not always available, and sometimes for a limited number of years on the 
competent authorities websites (CY116, EL117). 

Most  of  the  times,  when  statistics  are  public,  the  lack  of  disaggregation  does  not  allow  to 
identify  the  ground  underlying  the  permit  acquisition  (EL,  EE,  HU,  FR),  which  makes  it 
impossible to identify investor permits. The novelty of the scheme is an element sometimes 
put forward to account for this absence of clear statistics (IT, SK, CZ). 

Regarding  available  public  statistics  targeting  investor  residence  schemes,  Spain  published 
statistics  in  the  2015  Report  of  the  MESS  on  the  implementation  of  the  Law  14/2013118, 
covering the period 30 September 2013 to 31 December 2014. 

In  some  cases,  parliamentary  questions  and  freedom  of  information  requests  may  enable  to 
get more information and to make up for this structural lack of transparency. For instance, in 
the case of Ireland, the Irish Naturalisation and Immigration Service has provided information 
via Parliamentary questions on the following items: the number and value of applications per 
annum since 2012 under each investment option, the number and value of immigrant investor 
programme applications for social housing investment and nursing home investment in 2017, 
the  criteria  against  which  applications  are  evaluated,  the  number  of  applications  approved 
under the scheme, the investment  funds for which applications under the scheme have been 
approved to date and the amount of money invested in the scheme.  

116   General  statistics  can  be  found  on  the  Ministry  of  Interior  website  for  2015  and  2016.  See 

http://www.moi.gov.cy/moi/crmd/crmd.nsf/page13_gr/page13_gr?OpenDocument  

117   On the website of the Greek Ministry of Migration monthly migration statistics can be found, however, this 

go only as back as one year (http://immigration.gov.gr/web/guest/miniaia-statistika-stoixeia  

118   Law 14/2013, of 27 September, on the support to entrepreneurs and their internationalisation (Ley 14/2013, 
de 27 de septiembre, de apoyo a los emprendedores y su internacionalización), Official State Gazette 233 
of  29  September  2013,  BOE-A-2013-10074,  available  at  https://www.boe.es/buscar/act.php?id=BOE-A-
2013-10074  (Law 14/2013). Report available at 
http://extranjeros.mitramiss.gob.es/es/UnidadGrandesEmpresas/ley14_2013/documentacion/Informe_anual
_de_la_Seccion_de_Movilidad_de_la_ley_14_2013.pdf  

24 

 
 
 
 
 
 
 
 
 
 
                                                           
In Bulgaria, information regarding number of successful  applicants  can be obtained through 
an official request for information under the Access to Public Information Act. In Croatia, the 
Ministry of the Interior enables the access to data collected through the request for the access 
to  information,  available  on  its  Website.  In  Lithuania,  the  Migration  department  collects 
statistical  information  that  is  published in  its  annual  Migration  yearbooks. However, data is 
not disaggregated.  

The  following  figures  on  the  permits  granted  per  Member  States  have  been  retrieved  both 
through  the  stakeholders  consultation  carried  out  in  the  context  of  the  Study  and  through 
public websites. 

2012 

2013 

2014 

2015 

2016 

2017 

BG119 

103 

98 

107 

117 

143 

164 

CY 

CZ 

EE120 

EL 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
available 

61 

54 

35 

28 

18 

68 

Not 
applicable 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

ES121 
(figures cover 
only the period 
30 September 
2013 to 31 
December 2014) 

531 

119  
120  
121  

Information obtained through consultation of national authorities for the purposes of the Study. 
Information obtained through consultation of national authorities for the purposes of the Study. 
‘Report on the implementation on the Section on International Mobility of Law 14/2013 of 27 September 
on the support to entrepreneurs and their internationalisation’ (Informe sobre la aplicación de la Sección de 
Movilidad  Internacional  de  la  Ley  14/2013,  de  27  de  septiembre,  de  apoyo  a  los  emprendedores  y  su 
at 
internacionalización), 
http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/ley14_2013/documentacion/Informe_anual_d
e_la_Seccion_de_Movilidad_de_la_ley_14_2013.pdf (2015 MESS Report). 

available 

2015, 

April 

25 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
FR122 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

29 

HR 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

HU123 

Not 
available 

8413 

IE124 

Not 
available 

Not 
available 

Not 
available 

67 

317 

334 

IT 

LT 

LU 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
applicable 

Not 
available 

LV125 

2890 

4438 

5822 

1101 

692 

161 

MT126 

Not 
applicable 

Not 
applicable 

Not 
applicable 

0 

29 

83 
(263 still 
under 
consider
ation) 

PL127 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

770 

1600 

122  
123  

Information obtained through consultation of national authorities for the purposes of the Study. 
Information  made  public  by  the  Ministry  of  the  Interior,  upon  request  of  a  member  of  the  Hungarian 
Parliament. Response of the Minister of Interior to the information request of Mária Demeter, independent 
member of the Hungarian Parliament, 31 May 2017, available at: 
http://www.parlament.hu/irom40/15714/15714-0001.pdf        

124   Figures for Ireland relate to the number of applications received. Source: Parliamentary Question 262: 23 

125  
126  
127  

January 2018’, Department of Justice and Equality. 
Information obtained through consultation of national authorities for the purposes of the Study. 
Information obtained through consultation of national authorities for the purposes of the Study. 
Information  obtained  through  consultation  of  national  stakeholder  (Ministry  of  Interior  Affairs  and 
Administration, Statement of 6 June 2018 no DAiPM-WSNPA-052-34/2018). 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
PT128 

RO 

SK129 

UK130 

2 

494 

1526 

766 

1414 

1351 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

Not 
available 

22 

21 

27 

17 

38 

73 

773 

960 

1773 

681 

813 

274 

This general lack of information and transparency appears at odds with the policy objective of 
the scheme and the possibility to assess its efficiency.  

128   Source: https://www.sef.pt/en/Documents/Mapa_ARI_EN_december18.pdf  
129  

Information  obtained  through  consultation  of  national  authorities  for  the  purposes  of  the  Study.  Figures 
cover only permanent residence – Figures on temporary residence are not available. 

130   Government  immigration  statistics,  available  at  https://www.gov.uk/government/statistics/immigration-
statistics-july-to-september-2017-data-tables. Figures cover both leave to enter and leave to remain Leave 
to  enter  is  the  authorisation  to  enter  and  stay  in  the  UK  for  3  years  and  4  months.  After  this,  Leave  to 
remain can be granted, which is an extension of 2 years. 

27