EU Gives Caribbean Investment Passport Programs Two-Year Deadline Over Schengen Concerns

On June 25, 2026 the European Commission formally requested that five Eastern Caribbean nations—Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis and Saint Lucia—begin winding down their citizenship-by-investment programs by June 1, 2028, warning that failure could eventually end their citizens’ visa-free access to the EU’s Schengen zone. The move follows the EU’s revised Visa Suspension Mechanism, which permits suspension of visa exemptions for countries whose investor-citizenship schemes lack genuine ties and adequate security checks.

The Commission highlighted risks of money-laundering, corruption and security threats, noting that about 107,000 passports have been issued and that rejection rates are unusually low. It instructed the Caribbean governments to exclude applicants subject to EU sanctions and to strengthen due-diligence procedures by September 2026, promising to review their response in the next report. While island leaders such as Prime Minister Gaston Browne argue the programs fund essential public services, industry representatives like Kal Dobbin say they will seek a negotiated redesign rather than a total shutdown. Existing passport holders may keep their nationality but could lose Schengen travel benefits, prompting banks and investors to reassess risk exposure.