At least 130 000 persons have taken advantage of CBI/RBI and have gained EU citizenship or residence, under investment schemes that have brought in over €21.8 billion between 2011 and 2019, claims to EAVA report.
The global market for such schemes has increased over time and are in operation in more than
60 countries around the world
The European added value assessment (EAVA) is intended to support the European Parliament’s legislative initiative. It reviews the possible legal bases for EU action and assesses several policy options that could be pursued at the EU level.
The new policy proposes introducing new amendments to EU legislation in the five key areas to regulate CBI and RBI in member states.
1. Phase out CBI/RBI schemes
This policy option would introduce an EU-wide requirement to phase out CBI schemes. It could be implemented over time to limit the possible negative impacts for Member States that have such schemes in place (eg. a ‘0-quota’)
2.Taxing CBI/RBI
Externality tax on revenue generated by RBI/CBI schemeswith redistribution to all Member States.
The first policy options impose a tax in order to ‘compensate’ for the costs due to CBI/RBI that are borne by other Member States. The second policy option aims at de facto phasing out of these schemes via a 100% tax
3. Regulation and safeguards of CBI/RBI schemes
The proposed policy guidelines under this are
- Code of Conduct
- AML and Due diligence obligations
- Duty to notify EU and Member States before establishing/modifying a scheme towards greater cooperation.
- Enhanced due diligence
- Conditions on revoking citizenship
- EU level audit
- Set maximum cap on number of approvals
4. Physical Presence
Introduce minimum physical presence requirements for RBI schemes
5. Regulate Access to EU
Regulate access to the EU for Countries in the accession process (Montenegro, North Macedonia and Turkey) and Third countries with CBI
schemes and visa-free agreements with the EU
The full report is available here
