EU May Suspend Visa-Free Travel for “Golden Passport” Countries: Parliament Committee Backs New Mechanism

The European Parliament is preparing a decisive move against countries offering citizenship-by-investment (CBI) programs. In March 2025, the Civil Liberties Committee (LIBE) approved a legislative proposal allowing the EU to suspend visa-free agreements with countries that provide “golden passports,” according to SchengenVisaInfo.

The proposed amendments to Regulation 2018/1806 introduce a new mechanism to suspend visa-free travel not only based on irregular migration but also on national security concerns. The legislation emphasizes that investment-based citizenship could facilitate money laundering, evade sanctions, and undermine the EU’s entry rules.

According to IMI Daily, lawmakers raised concerns about the lack of transparency and weak due diligence in many CBI programs. The EU Parliament underlines that buying a passport must not offer a loophole to access the Schengen Area.

A History of Investment Migration in the EU

From 2011 to 2019, more than 132,000 people acquired citizenship or residency in the EU via investment, generating over €21 billion in economic contributions. However, inconsistent vetting standards created security risks. Some individuals gained access without ever living in the country or undergoing proper scrutiny, leading to misuse in cross-border activities.

The European Commission has long urged member states to shut down or reform CBI schemes. It even sued Malta for granting citizenship without requiring real residency, as noted by Euronews. In 2022, the EU revoked visa-free status for Vanuatu after it was found issuing passports to individuals on international wanted lists.

Countries Ending Their CBI Programs

Several countries have already ended or scaled back their programs under EU pressure:

Ireland shut down its investor program in 2023.

The Netherlands closed theirs in early 2024.

Portugal removed real estate investment from its Golden Visa scheme.

Spain stopped accepting new CBI applications in April 2025, citing housing affordability concerns.

As Reuters reports, the EU aims to prevent any country from undermining the bloc’s security through poorly regulated passport sales.

Legal Experts & Analysts Weigh In

Jonathan Hughes, an immigration lawyer, believes countries wishing to retain Schengen access will need to tighten compliance procedures and improve due diligence standards. Nations like Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia are now under scrutiny.

Meanwhile, ECFR analyst Silvia Paoli says the EU’s approach reflects a shift from diplomatic nudges to concrete sanctions. She warns that visa restrictions could significantly affect the economies of small island nations that depend on CBI revenues.

Outlook

The European Union’s stance signals a broader trend toward stricter immigration controls. While aimed at safeguarding public security and financial integrity, these measures may challenge countries whose economies rely on citizenship-for-investment schemes.

As experts agree, future migration policies are unlikely to become more lenient — with enforcement set to intensify across citizenship, residency, and border management.