BRUSSELS, Oct 20 (Reuters) - The European Union's executive said on Tuesday it was launching legal action against Cyprus and Malta over their investor citizenship programmes, also known as "golden passport" schemes.
Having Grenadian citizenship makes applying for a US investor visa easier for businesspeople, he said, while those looking to retire or settle abroad can invest around a quarter of a million dollars in Greece or Portugal to secure permanent residency.
The commission has refrained from launching legal actions against EU states that sell residence permits, also known as "golden visa schemes", without requiring investors to stay in the country for a meaningful period, despite a European Parliament resolution urging such a move.
Depends what visa and what country
Cyprus said last week it was suspending its citizenship-for- investment programme, ditching a scheme the government had acknowledged was open to abuse after an investigation by Al Jazeera, a media outlet.
Malta's Finance Minister Edward Scicluna said on Tuesday the country was replacing its current scheme with a new programme that would introduce tighter vetting of applicants, who will have to be residents of the islands for a year before their applications can be considered.
Some EU member states, including Bulgaria, Cyprus and Malta, have also operated "golden passport" schemes, but they have run into opposition from the European Commission over the back door they offer to EU citizenship.
The European Commission said the decision was taken because the two member states granted nationality - and thereby EU citizenship - without requiring "a genuine link with the country", as passport holders were not obliged to reside there.
The Cypriot and Maltese governments have two months to take action. Without meaningful changes, the commission could refer them to the bloc's Court of Justice and ultimately it can ask the court to impose penalties. ($1 = 0.8467 euros) (Reporting by John Chalmers and Francesco Guarascio; additional reporting by Chris Scicluna in Valletta; Editing by Alex Richardson)
Fearing visa hassles could cost him his job in Dubai while an economic collapse had dashed any homecoming options, Lebanese executive Jad splurged around $135,000 on a new citizenship for himself and his wife.
Having Grenadian citizenship makes applying for a US investor visa easier for businesspeople, he said, while those looking to retire or settle abroad can invest around a quarter of a million dollars in Greece or Portugal to secure permanent residency.
The commission has refrained from launching legal actions against EU states that sell residence permits, also known as "golden visa schemes", without requiring investors to stay in the country for a meaningful period, despite a European Parliament resolution urging such a move.
Depends what visa and what country
Cyprus said last week it was suspending its citizenship-for- investment programme, ditching a scheme the government had acknowledged was open to abuse after an investigation by Al Jazeera, a media outlet.
Malta's Finance Minister Edward Scicluna said on Tuesday the country was replacing its current scheme with a new programme that would introduce tighter vetting of applicants, who will have to be residents of the islands for a year before their applications can be considered.
Some EU member states, including Bulgaria, Cyprus and Malta, have also operated "golden passport" schemes, but they have run into opposition from the European Commission over the back door they offer to EU citizenship.
The European Commission said the decision was taken because the two member states granted nationality - and thereby EU citizenship - without requiring "a genuine link with the country", as passport holders were not obliged to reside there.
The Cypriot and Maltese governments have two months to take action. Without meaningful changes, the commission could refer them to the bloc's Court of Justice and ultimately it can ask the court to impose penalties. ($1 = 0.8467 euros) (Reporting by John Chalmers and Francesco Guarascio; additional reporting by Chris Scicluna in Valletta; Editing by Alex Richardson)
Fearing visa hassles could cost him his job in Dubai while an economic collapse had dashed any homecoming options, Lebanese executive Jad splurged around $135,000 on a new citizenship for himself and his wife.