What is the Schengen Area?

The Schengen Area represents one of the most emblematic areas of European integration, by allowing the free movement of people without internal border controls between the countries that comprise it. 

For those considering alternative residency or citizenship by investment in Europe, understanding what belonging to this area entails and how it differs from other structures, such as the European Economic Area or EFTA, is fundamental for migration and strategic planning.

Schengen Area: origin and scope

It is an area comprised of 27 European countries that have abolished internal border controls, allowing the free movement of people between them, as if they were a single country. It takes its name from the city of Luxembourg, where the first agreements on the matter were signed. 

This elimination of internal borders is complemented by a common set of rules for external border controls, visas, and police and judicial cooperation. Its main objective is to facilitate the mobility of citizens, residents, and visitors. 

This initiative stems from Schengen Agreement, signed on June 14th, 1985 by five countries of the then European Economic Community (EEC): France, Germany, Belgium, Luxembourg and the Netherlands. 

However, the practical implementation of the provisions only began in 1995, when border controls were effectively eliminated.

Since then, the space has been expanding, incorporating new members from both the EU and other European frameworks.

Countries that make up the Schengen Area

To the date, 27 countries They are part of the Schengen Area:

• EU member states that are in Schengen: Germany, Austria, Belgium, Czech Republic, Croatia, Denmark, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal and Sweden.
  
• States that are not EU members but are within SchengenIceland, Liechtenstein, Norway and Switzerland.

Now that this definition is clear, it is necessary to distinguish this Area from other entities such as the European Union and the European Free Trade Association. Let's review it.

European Union (EU)

It is a political and economic organization composed of 27 European countries that share common institutions and coordinated policies in economic, legislative and, in certain aspects, migratory matters. 

Not all EU members belong to the Schengen Area. For example: Ireland is part of the EU, but No. It is in Schengen. However, not all Schengen countries are members of the EU. For example, Norway is in Schengen, but No. It is part of the EU.

European Economic Area (EEA)

It includes the EU countries plus three EFTA states: Iceland, Liechtenstein, and Norway. It allows participation in the European single market without being an EU member, but does not automatically imply participation in Schengen, although in practice there is significant overlap.

European Free Trade Association (EFTA)

Composed of four countries: Iceland, Liechtenstein, Norway, and Switzerland, it is an intergovernmental organization that promotes free trade and economic integration with the EU. Switzerland is not part of the EEA, but it has established bilateral agreements with the EU and is part of the Schengen Area.

Understanding these differences is key when considering international mobility options. For example: obtaining a residence in Portugal It allows free movement within the Schengen Area, regardless of the EU status of other countries visited.

Do you want to live or work in Europe? AIM Global can advise you.

The Schengen Area offers one of the greatest advantages for those who invest in European residency or citizenship: free movement without restrictions between multiple European countries. 

At AIM Global we have a team of international mobility experts, ready to help you find the best option for residence and/or citizenship in Europe, and with it, access to this space.

Schedule a meeting Join us and we'll help you find the path to turning your dreams into reality.