Conditions for residence of third-country national investors in the Member States have not been harmonised under EC law. Member States determine the conditions of entry and stay of third-country nationals who wish to invest in the country and stay for longer than three months.

Portugal is therefore entitled to determine the conditions on which it grants long-stay visas and residence permits to third-country nationals. These national permits do not entitle the third-country nationals to reside outside Portugal, but according to Article 21 of the Convention Implementing the Schengen Agreement, their holders can travel for up to three months in any six-months period within the territories of the other Schengen Member States.

Only long-term third-country national residents issued with a residence permit according to the conditions of Council Directive 2003/109/EC(1) have a right of residence in other Member States. Those conditions include that the third-country nationals must have legally and continuously lived in the territory of the Member State concerned for at least five years; they must also have sufficient resources to maintain themselves, as well as health insurance.

To the extent that schemes such as the one referred to by the Honourable Member refer to investments in a Member State, EU legislation against money laundering(2) applies to transactions or business relationships connected to those investments.

(1) Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals who are long-term residents.
(2) In particular, Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.