Why are investors increasingly choosing alternatives to EU citizenship?
For many years, citizenship-by-investment programs in Europe were considered by investors as a fast and relatively simple way to obtain an EU passport. However, today most of these programs have been closed or are effectively unavailable to new applicants. In addition, access to them has been restricted in recent years for citizens of certain countries, including Russia and Belarus.
Against the backdrop of tightening EU policies, program closures, and restrictions for nationals of certain jurisdictions, many investors are forced to reconsider their international and migration strategies. Instead of the goal of “obtaining an EU passport at any cost,” a more flexible model is increasingly being chosen — a combination of residency permits, tax statuses, and, where necessary, an alternative second citizenship. In the professional community, we refer to this as a “migration portfolio.” There are several reasons behind this trend.
Long processing times for citizenship
Even in countries with relatively clear procedures, the path to EU citizenship takes years.
In most jurisdictions, standard naturalization requires:
- 5 to 10 years of residence,
- proof of integration,
- and sometimes renunciation of previous citizenship.
As a result, investors are increasingly asking a practical question: is it worth waiting a decade for citizenship if the key objectives — living in Europe, freedom of movement, and the ability to work remotely — can already be achieved at the residency level? One of the growing trends is digital nomad visas.
Spain offers a visa for remote professionals, allowing individuals to legally reside in the country while working for foreign companies. Hungary has the White Card program, designed for remote workers and entrepreneurs.
| Such statuses allow individuals to live in Europe now, without waiting for a lengthy naturalization process. |
Tax implications
For high-net-worth clients, tax planning becomes a key factor.
Citizenship itself does not always affect taxation; however, long-term residence in EU countries almost inevitably leads to tax residency (since extended residence is one of the core requirements for naturalization). This implies:
- taxation on worldwide income,
- complex reporting requirements,
- potentially higher tax rates.
Therefore, many investors prefer to structure their residence and business arrangements in a way that preserves greater tax flexibility - for example, by combining European residency with corporate structures or tax residency in other jurisdictions.
Financial transparency (CRS)
The Common Reporting Standard (CRS) has significantly changed the international financial landscape.
Today, banks automatically report account information to the tax authorities of the client’s country of tax residence. This means that tax residency, rather than citizenship, has become the key determining factor.
As a result, many investors focus less on obtaining a second passport and more on building a sound tax structure and choosing the right jurisdiction of residence.
Flexibility of residency
Another important trend is the development of long-term residency and investment residence permit programs.
Today, investors can obtain a stable residence status without going through a lengthy citizenship process. For example:
- investment residence permits in Europe (including real estate-based programs),
- entrepreneur residence permits,
- visas for remote professionals.
Such statuses allow individuals to legally reside in a country, use its infrastructure and banking system, while maintaining flexibility in personal and tax planning.
Alternative strategies: investment residence permits and second citizenship
Many investors also include a backup second citizenship in their “migration portfolio” as a risk diversification tool.
- Popular citizenship-by-investment programs include:
- Vanuatu,
- São Tomé and Príncipe,
- Türkiye.
Unlike EU naturalization, such programs allow for significantly faster acquisition of a second passport and can be used for international mobility or risk diversification.
As a result, a more flexible model is emerging: residence in one country, business or tax residency in another, and a backup citizenship in a third.
Multi-jurisdiction strategy
Today, many high-net-worth individuals no longer pursue a single-passport strategy, but instead build a comprehensive international structure:
- country of residence,
- tax jurisdiction,
- location of investments and assets,
- backup status in case of political or economic changes.
In this model, EU citizenship may be one element, but it is no longer necessarily the primary objective.
The key question for investors today is not “how to obtain EU citizenship,” but rather “how to build a sustainable international strategy for themselves and their families.”
| If you are considering relocation, an investment residence permit, or obtaining a second citizenship, the REVERA team can help you assess tax implications, residence requirements, and investor restrictions across jurisdictions, evaluate all available options, and choose the optimal combination of statuses and jurisdictions -- aligned with your family, business, and tax planning goals. |
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