Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Chinese investors, beware: EU targets ‘golden visas’

Chinese investors, beware: EU targets ‘golden visas’

Such passports, which some nations issue in return for investments, are popular because they effectively give freedom of movement among all EU member states.

For years, wealthy Chinese have made investments in Cyprus and Malta in exchange for European Union passports – so-called golden visa transactions. Now, Brussels wants to end the practice.

The call to stop the policy came from the very top of the European Commission, the EU’s executive arm, when President Ursula von der Leyen voiced it during her first state-of-the-union speech earlier this month.

“European values are not for sale,” she said.

“The breaches of the rule of law cannot be tolerated. I will continue to defend it and the integrity of our European institutions – be it about the primacy of European law, the freedom of the press, the independence of the judiciary or the sale of golden passports,” she said.


European Commission President Ursula von der Leyen has declared the EU’s opposition to “golden visa” programmes.


The commission is even considering the possibility of taking EU member states that issue such visas to court, as it applies political pressure on those countries to stop the practice.

A golden visa essentially grants its holder full EU citizenship. The passports are very attractive given the freedom of movement among the nations in the union, since holders of Chinese passports do not enjoy visa-free access to most countries.

In the decade ending 2018, the EU welcomed more than 6,000 new citizens and close to 100,000 new residents through golden visas schemes, according to Transparency International, a German NGO.

Currently, four EU members offer passports and 12 trade residency rights through golden visa programmes. The two lists overlap, with three countries – Bulgaria, Cyprus and Malta – having both schemes. Cyprus and Malta seem to be the most popular with Chinese investors.

“Due to the nature of EU citizenship, such schemes have implications for the union as a whole. The commission is looking at compliance with EU law, and will introduce infringement proceedings, if judged necessary,” a commission spokeswoman said.

“The commission has frequently raised its concerns about investor citizenship schemes and certain inherent risks, in particular as regards security, money laundering, tax evasion and corruption.”

Didier Reynders, the European commissioner for justice, had been in contact with three member states to raise these concerns directly, the spokeswoman said.


European Commissioner for Justice Didier Reynders has contacted three member states to discuss the EU’s concerns about their investor citizenship programmes.


The EU has been under pressure to act after an investigation by Al Jazeera last month found that dozens of people who obtained golden visa passports from Cyprus between 2017 and 2019 would have otherwise been rejected as “high risk” according to the country’s rules.

Al Jazeera’s report included naming several Chinese businesspeople who had such passports and concurrently served as advisers to the Communist Party in the Chinese People’s Political Consultative Conference.

Despite the EU’s hardening rhetoric, Chinese immigration agents appeared unfazed, with multiple websites continuing to promote this route to EU citizenship.

“The European Union is a loose federation, and the EU [commission] president really can’t speak for the member state governments,” said Crystal Tan, a manager at Cheuk Yuet Migration Consulting Services, an agent in Guangzhou.

Tan said she and other agents did not believe the golden passport programme would end.

“As we can see, such programmes are bringing huge revenues to Cyprus, Malta, Portugal and even Spain,” she said.

The Mediterranean island nation of Cyprus requires an investment of at least €2.2 million (US$2.6 million) but with no obligation to live there; within six months investors can have an EU passport with the right to live and work in all 27 states in the bloc – and visa-free access to more than 170 nations around the world.

In Malta, investors can receive a passport if they make a donation of €650,000 to a government national development fund, invest €150,000 in government-approved stocks or bonds, purchase real estate for a minimum of €350,000 and commit to a residence for at least five years.

Non-EU citizens can likewise be given a route to Portuguese residency if they spend at least €500,000 on a property – or lower price thresholds for less dense areas or areas marked for redevelopment.

The EU cannot ban such programmes by its member states, but is looking at ways to make these schemes illegal, including through the courts. And while there is no specific timeline, von der Leyen’s term lasts five years.

If EU countries did close their programmes, Tan said Chinese investors would have other options.

“Even if some member countries respond to the EU president by ending the golden passport programmes, rich people will just look at other places – for instance, Saint Kitts and Mexico are providing similar programmes.

“For Chinese clients, as long as the new passport can provide travel convenience or help to move wealth abroad, the demand will always be there,” Tan said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
×