The demand for second citizenship in Europe has become a strategic issue that can no longer be explained solely by the search for a "prestigious passport." According to 2026 projections, the global investment-based residency/citizenship market is expected to generate approximately 20 billion USD annually, with this volume expected to approach 100 billion USD by 2030. Behind this growth lies a multi-layered set of motivations ranging from geopolitical uncertainties to tax pressures, the EU's closure of citizenship by investment (CBI) channels, family security, and business continuity.
Specifically, the transformation in Europe is clear: by 2026, CBI options that grant "direct citizenship" in the EU will effectively disappear. This closure has redirected investors and families planning global mobility towards an "initial residency, then citizenship" approach; that is, to programs such as golden visas and similar investment-based residency programs.
The Fundamental Need Triggering Demand Increase: Risk Diversification and Gaining Mobility
Second citizenship or EU residency is increasingly seen as a risk management and mobility plan rather than a "luxury" for more and more people today. High-income groups and entrepreneurs engaged in international business are creating alternative statuses (2-3 different residency/citizenship combinations) to reduce the vulnerabilities created by being tied to a single country.
- Family security and crisis scenarios: Unforeseen political tensions, internal security concerns, sudden visa/travel restrictions.
- Business continuity: Access to banking, execution of contracts, uninterrupted supply and operations.
- Education and health: More flexible school/university options for children and access to alternative healthcare systems.
- Travel freedom: Access to the Schengen area and reduced procedural costs in multi-country plans.
1) Geopolitical Uncertainty and the Need for a “Plan B”
In recent years, increasing military conflicts and global instability have directly increased interest in second citizenship. Research data emphasizes that there has been a 3-4 fold increase in applications, especially from the US. The “Plan B” approach is strengthened by the desire for quick relocation during a potential crisis, protecting assets, and moving the family to a secure legal environment.
This motivation is evident not only in countries close to conflict zones but also in economies where financial and political uncertainties are rising. Investors are turning towards statuses that provide strong banking systems, predictable legal frameworks, and broad visa-free access.
2) Tax Pressure, Wealth Planning, and Exit from “High-Cost” Countries
Another main reason for the second wave of demand is the increasing tax and compliance costs. Particularly high-income individuals are restructuring tax planning due to changing regimes in some countries. Research data indicates that developments such as the removal of the “non-dom” status in the United Kingdom and “millionaire exits” have increased interest in jurisdictions with low/0 income tax and more balanced regimes within the EU.
At this point, an important distinction exists: Second citizenship/residency does not always mean “less tax.” However, when structured correctly, it can provide predictability in the following areas:
- Reduction of dual residency risks,
- Clearer frameworks for taxing foreign-sourced income,
- Evaluation of country-based advantages in inheritance/wealth transfer planning,
- Correct positioning of the operating country and home country for business-owning entrepreneurs.
Corpenza’s international accounting, tax compliance, incorporation, and payroll/EOR experience plays a critical role at this stage: It is necessary to proceed not just with “gaining status” but also by modeling the tax and operational implications of that status.
3) With the Closure of Direct Investment-Based Citizenship (CBI) in the EU, the Route Shifted to “Residency to Citizenship”
The primary break that accelerated the increase in demand in Europe was the closure of CBI programs that provide direct citizenship. According to research data, with the approach of the European Court of Justice in 2025, the line indicating that CBI is incompatible with EU law has hardened; the closure trend seen in Cyprus, Bulgaria, and other examples reached the point where “there is no direct CBI left within the EU” by 2026.
As a result: If an investor aims for a “passport,” they must now obtain residency permission first in most scenarios and then progress to citizenship through naturalization in subsequent years. This has led to the following behavioral changes:
- Planning according to changing time horizons of 5-11 years,
- Expectation of genuine links: Language, number of residence days, integration indicators,
- Preparation for strict due diligence and source/wealth proof processes,
- Shifting towards alternatives like funds/startups instead of “frozen investments” in real estate.
4) Business, Mobility, and Schengen Access: Why is European Residency Still Strong?
Despite the EU closing the doors to direct CBI, Europe’s appeal has not diminished; on the contrary, Schengen access, the commercial scale offered by the single market, and a regular banking/finance infrastructure have strengthened the “residency” route.
Particularly, the following profiles show intense interest in European residency:
- Owners of companies engaged in international trade (access to the EU single market, ease of distribution and operations),
- Digital nomads and remote workers (multi-country living arrangements),
- Investors living on passive income (alternative residency combinations without freezing capital),
- Family-focused applications (factors like children's education plans, spouse's right to work).
Prominent “Investment-Based Residency” Options in Europe in 2026 (New Reality After CBI)
Research data shows that the most discussed alternatives in Europe by 2026 are “golden visa” and similar residency programs. The following framework provides a basic comparison of countries in terms of investment thresholds and the timeline to citizenship (details may vary based on the program, residency requirements, and the applicant's situation):
Hungary: 10-Year Residency Permit and Fund Investment
- Minimum investment: 250,000 EUR (real estate fund)
- Residency duration: 10-year permit (claim of fast processing)
- Citizenship horizon: approximately 11 years
- Note: The initially low requirement for actual residency is one of the factors increasing interest.
Portugal: Fund/Startup-Focused Transformation and 5-Year Citizenship Horizon
- Minimum investment: 250,000–500,000 EUR (funds/startup)
- Citizenship horizon: 5 years
- Note: With the gradual decline of real estate, the focus on funds and innovation has strengthened.
Spain: Popularity Continues, Rules Tighten
- Minimum investment: 500,000 EUR (real estate)
- Citizenship horizon: 10 years
- Note: Despite high demand, discussions about tightening the rule set make program risk management significant.
Greece: A More Selective Model with Differentiated Thresholds
- Minimum investment: 250,000 EUR (startup) or 500,000 EUR (real estate)
- Citizenship horizon: 7 years
- Note: The startup/innovation axis has diversified the investment composition.
Italy: Startup and Innovation Theme
- Minimum investment: 250,000 EUR (startup) or 500,000 EUR (real estate)
- Citizenship horizon: 10 years
- Note: It can provide a suitable framework for entrepreneurs establishing commercial assets/operations.
Latvia: Regional Alternative and Limited Dual Citizenship
- Minimum investment: Variable (business/real estate)
- Citizenship horizon: 10 years
- Note: Dual citizenship restrictions may affect the application strategy.
The common message of these tables is this: The era of “fast passports” in Europe has receded; a more regulated, more transparent, and more long-term citizenship pathway has emerged.
Why Do Programs Outside Europe Still Affect European Demand?
In the global market, Caribbean CBI programs remain very strong. Research data indicates that, for example, applications in Grenada have increased by 122% and that CBI revenues in small island economies can reach 14-40% of GDP. Some investors acquire these citizenships for quick passports, visa-free access, or alternative banking options while simultaneously establishing a “dual-layered” mobility portfolio by obtaining residency in Europe.
The emergence of new and more cost-effective programs (in Africa and Latin America) also indirectly affects European residencies: Investors are now building alternatives across different continents instead of being tied to a single status. However, Europe, especially due to the Schengen and single market effect, largely retains its “central” role.
Cost and Tax Dimension: Hidden Costs as Determinants as Much as Investment Amount
Looking solely at the minimum investment threshold in second citizenship/residency planning can be misleading. 2026 trends show that compliance and regulation costs are also increasing. When making decisions, the following items should be evaluated together:
- Application process costs: Review (due diligence), translation/notary, fees.
- Liquidity of the investment: Fund lock, exit time, market risk.
- Tax residency effect: Obtaining residency and being a tax resident are not the same; the number of days, central life relationships, and country rules are decisive.
- Incorporation and income structure: Factors such as where the company is established, where payroll is paid, and the source of income change the total cost.
Therefore, the effective approach is to consider the components of “country selection + investment vehicle + tax/company structure + family plan” in a single model.
How to Establish a Successful Second Citizenship/Residency Strategy?
Increased demand also means more intense scrutiny. In a period when programs are tightening, proper process management reduces rejections and prevents time loss. The approach that yields strong results in practice progresses through the following steps:
- Defining the goal: Is the aim Schengen access, tax planning, family relocation, or business expansion?
- Shortlist of suitable countries/programs: Citizenship horizon, residency obligations, dual citizenship rules, investment structure.
- Preparation for source and asset proof: Bank transactions, company documents, income proofs.
- Residency/business plan: Maintenance of residency rights, renewal conditions, statuses of family members.
- Long-term citizenship roadmap: Language/integration, residency days, natural process timeline.
How Does Corpenza Create Value in This Process?
Second citizenship or European residency is not merely a “migration application”; in most cases, it directly intersects with international business development, incorporation, payroll, and tax compliance. Corpenza’s approach does not reduce the application to mere paperwork; it creates an end-to-end mobility structure based on the goals of the individual/family and the company.
- Incorporation and structuring: Establishing a company in Europe, designing a structure suitable for the country of operation.
- International accounting and tax compliance: Planning that reduces risks in a multi-country income/asset structure.
- Payroll/EOR: Payroll and compliance processes in cross-border employment scenarios.
- Tax optimization with the posted worker model: Personnel assignment structures in suitable scenarios (in compliance with country rules).
- Coordination of residency and investment programs: Process management in golden visa and similar programs.
Especially in a period where “genuine links” and strict scrutiny standards have risen in the EU, professional support makes both time/reputation risk and compliance costs manageable.
Conclusion: Demand for Second Citizenship in Europe is Increasing; However, the Game is Now More Long-Term and Regulated
Geopolitical risks, tax pressures, and the closure of the EU’s CBI channels have shifted the goal of second citizenship in Europe to an “indirect” route. The model emerging in 2026 is clear: investment-based residency + gradual naturalization. This transformation creates uncertainty for those who act without planning; however, it offers a strong opportunity to build a “mobility portfolio” that protects family and business for those who plan strategically.
When the right country selection, the right investment vehicle, and the right tax/operational structure come together, obtaining a second status in Europe becomes a significant leverage for both individual security and institutional sustainability.
Disclaimer
This content is for general informational purposes; it does not constitute legal, tax, or financial advice. Program conditions, investment thresholds, eligibility criteria, and practical applications may vary by country and may be updated over time. We recommend checking current official announcements before applying and seeking support from professionals with expertise in the field for a situation-specific assessment.
