Source: European Parliament
Since the adoption of the European Parliament resolution[1] on investor residence schemes[2], the Commission has taken action to address the risks related to security, money-laundering, tax evasion and corruption.
In its 2022 Recommendation[3], the Commission called on Member States to take measures to prevent such risks and take specific actions regarding investor residence permit granted to nationals of Russia and Belarus.
The new Anti-Money Laundering package[4] also introduces strict obligations on involved actors and requires Member States running these schemes to assess and monitor risks, and to put in place mitigating measures.
In addition, the proposed recast of the Long-Term Residents Directive[5] includes rules to prevent third-country investors from abusively acquiring EU long-term resident status.
With regards to the social impact of “golden visa” schemes, the Commission notes that in respect of the subsidiarity and proportionality principles, primary responsibility for housing is within the remit of Member States, and regional and local authorities. However, the Commission is already providing support to Member States through a variety of funding and programmes[6].
In addition, the Commission appointed the first-ever Commissioner responsible for housing and established a Task Force for Housing. The Commission will put forward a European Affordable Housing Plan to help national, regional and local authorities address structural drivers of the housing crisis.
The Commission will foster investments in affordable housing through a pan-European investment platform[7], by allowing Member States to double cohesion policy investments in this area and by reviewing state aid rules to enable housing support measures.
- [1] European Parliament resolution of 9 March 2022 with proposals to the Commission on citizenship and residence by investment schemes (2021/2026(INL)) proposed to phase out CBI (Citizenship by investment Schemes) by 2025, and proposed other measures to address the risks posed by RBI (Residence by investment schemes) which are commonly named as ‘golden visas (https://www.europarl.europa.eu/doceo/document/TA-9-2022-0065_EN.pdf).
- [2] Commonly known as “golden visa” schemes.
- [3] C(2022) 2028 final, Commission Recommendation on immediate steps in the context of the Russian invasion of Ukraine in relation to investor citizenship and investor residence schemes .
- [4] In particular: Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive(EU) 2019/1937, and amending and repealing Directive (EU) 2015/849; Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
- [5] COM(2022) 650 final.
- [6] Including the Recovery and Resilience Plans, the European Regional Development Fund , the Cohesion Fund and Just Transition Fund, as well as the InvestEU programme’s Social Investments and skills window and sustainable infrastructure window and the European Social Fund+ .
- [7] To be established in cooperation with the European Investment Bank and other financial institutions.