The European Union has significantly hardened its stance against citizenship-by-investment (CBI) programs, placing five Eastern Caribbean nations under intensified scrutiny and potentially jeopardizing their visa-free access to the Schengen area. This policy shift is formally outlined in the EU’s Eighth Report under the Visa Suspension Mechanism, published December 19, which reviews 2024 developments and anticipates major changes in 2025.
The report, prepared under Article 8 of the EU’s Visa Regulation, identifies investor citizenship schemes as inherently risky, asserting they enable third-country nationals to bypass standard security checks and gain Schengen access through financial means rather than genuine ties. The Commission specifically highlights concerns about “illegal migration, security threats, and tax evasion” when vetting processes are weak or identity changes are permitted.
For the first time, the mere operation of a CBI program is now grounds for potential suspension of visa-free privileges under the EU’s revised Visa Suspension Mechanism. While referencing similar concerns in Serbia and Georgia, the report focuses particularly on Eastern Caribbean nations where these programs have operated for decades at scale.
EU estimates reveal approximately 107,000 passports have been issued through CBI programs in Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia. Despite recent reforms, demand remains strong with over 23,000 applications across 2023-2024. The Commission cites alarmingly low rejection rates—ranging from 1.7% to 6.5% in 2024—as evidence of insufficient due diligence.
Although these nations have implemented harmonized minimum investments ($200,000), enhanced screening, and transparency standards in response to previous EU warnings, the Commission concludes these measures remain inadequate. The report states these programs “pose a non-negligible security risk” and will face further examination under the revised legal framework.
This EU position coincides with growing international pressure on investor citizenship schemes, including recent US moves to expand travel restrictions on countries presenting security or migration risks.