Commission Spies Downsides of Bulgaria's 'Golden' Passport Schemes

The European Commission has criticized Bulgaria, among two other EU member states, for operating citizenship-purchasing schemes that grant foreign investors EU passports under "less strict than ordinary naturalisation regimes".

On Wednesday the Commission issued a selection of reports, mostly focused on Bulgaria, Malta and Cyprus, where gaining citizenship carries no obligation of physical residence or a requirement of other genuine connections with the country.

The reports outline how some of the existing practices of granting both "golden visas" - extended residency schemes - and "golden passports" - full-blown naturalizations - carry risks as regards to "security, money laundering, tax evasion and corruption".

"Investor residence schemes, while different from citizenship schemes in the rights they grant, pose equally serious security risks to Member States and the EU as a whole," the reports underlined.

In anticipation of the criticism, the Bulgarian Justice Ministry announced on Tuesday that it was dropping the schemes, citing analysis that concluded that they "did not achieve their goal to increase foreign investment and economic growth", Deputy Justice Minister Desislava Ahladova told reporters, as quoted by Focus agency.

She added that only 50 people had received Bulgarian citizenship under the two investment schemes in the 2013-2019 period.

According to European Commission data obtained from the Bulgarian authorities, 363 people have obtained extended or permanent residence in the 2012-2017 period, generating 162.5 million euros for the country.

Bulgaria legalised schemes granting residence and citizenship to third-country nationals investing in Bulgaria first in 2005. The laws have been amended since, making the...