EC gives recommendations to Bulgaria to tighten control over Golden Visa program

The European Commission on 23^rd of January presents a report on the EU Member States' programs that allow foreigners to buy citizenship by inverstments. Brussels warns that so-called "Golden Visa" programs pose risks of corruption and can help criminals to gain European citizenship. Bulgaria is also mentioned among countries with such programs.

There are Golden Visa programs in more than 10 EU countries offering visas and even citizenship against investment or bond purchases. Non-governmental organizations and the European Parliament have warned for several years that this poses a serious risk to security in Europe and helps criminals involved in financial abuse and money laundering to become EU citizens.

Cyprus and Malta are on the top of the list for selling citizenship. Thus, in recent years, Cyprus has attracted over 5 billion euros of foreign investment in exchange of Cypriot passports for wealthy foreigners - mostly Russians and Ukrainians. Among them is the Russian oligarch Deripaska. Investors from the Middle East, Asia and Africa also benefit from the programs.

Granting of citizenship is within the competences of national states and Brussels cannot prohibit the "golden visa" programs. In its report, the European Commission will warn Member States to be more careful and to better explore the capital and personality of the candidates for golden visas. They will also have to keep an eye on whether the investments made are real, whether people live in the country and maintain their investments.

Bulgaria is often referred to as the EU country where the cost of acquiring citizenship is the lowest. Companies that offer golden visas note that for their acquisition there is no requirement for residence in Bulgaria. No Bulgarian language skills, education and proof of capital are required. The country has favourable tax regimes, visa-free access to the countries of the Schengen area.