You have undoubtedly heard the term "Schengen" more times than you can remember if you have ever made travel plans to Europe, applied for a visa, or considered moving there. It appears on immigration websites, airport signage, and visa stickers, but most people never pause to consider the origins of the word or what it truly means to be a member of this special zone. This guide will explain what the Schengen countries are, the intriguing history of the agreement, the reason the zone has this particular name, the currencies used throughout the region, the GDP per capita of each member state, and above all the actual routes that people from all over the world can use to lawfully become part of it.
Whether you are a student pursuing a European degree, a professional seeking improved job options, an investor considering residence by investment, or simply a curious visitor, this article has all you need to know in one spot.
What Is the Schengen Area?
The Schengen Area is a grouping of European nations that have agreed to eliminate passport and border restrictions at their common borders. In layman's words, once a person has lawfully entered one Schengen nation, they may travel to any other Schengen country without being stopped for a passport check at internal borders, much as you might drive from one state to another inside a single country.
As of 2026, the Schengen Area includes 29 member countries. It is important to understand that the Schengen Area is not the same as the European Union. The European Union is a political and economic union, while the Schengen Area is specifically about the free movement of people across borders. Some EU members, such as Ireland and Cyprus, are not part of Schengen, while some non-EU countries, such as Switzerland, Norway, Iceland, and Liechtenstein, are full Schengen members. This distinction confuses many first-time travelers and applicants, so keep it in mind as you read further.
History of the Schengen Countries: How It All Began
The story of the Schengen Area begins on June 14, 1985. On that day, representatives from five European countries, Belgium, France, West Germany, Luxembourg, and the Netherlands, gathered aboard a boat on the Moselle River to sign an agreement that would eventually change how hundreds of millions of people travel across a continent. Their goal was simple on paper but ambitious in practice: to gradually eliminate checks at their common borders and allow people to move freely between their territories.
At the time, Europe was still divided by decades of national border controls, customs checkpoints, and immigration procedures that slowed down trade, tourism, and everyday movement between neighboring countries. The five founding nations believed that closer cooperation would strengthen their economies and bring their citizens closer together. The original 1985 agreement was mostly a statement of intent. It took another five years of negotiation before a more detailed and legally binding document, the Schengen Convention, was signed in 1990. This convention laid out the practical rules: a shared visa policy, cooperation between police and judicial authorities, and a common information system to track people crossing borders.
The Schengen Convention came into force in 1995, and that is when passport-free travel between the founding members actually began. From that point onward, more European countries wanted in. Italy, Spain, Portugal, Greece, Austria, and the Nordic countries joined through the late 1990s. When the Amsterdam Treaty was signed in 1997, the Schengen rules were folded directly into European Union law, making it far easier for future EU members to join the zone once they met the technical requirements.
The 2000s and 2010s brought a wave of new members from Central and Eastern Europe, including Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Estonia, Latvia, and Lithuania, all of which joined in 2007. Switzerland, a country famous for staying outside most European political structures, joined the Schengen Area in 2008 despite not being an EU member, proving that Schengen membership and EU membership are genuinely separate matters. Liechtenstein followed in 2011.
More recently, Croatia became a full Schengen member on January 1, 2023, removing land border checks with its neighbors for the first time. Bulgaria and Romania had a longer wait. Both countries joined the EU back in 2007 but were kept out of Schengen for years due to concerns raised by other member states. They were finally granted partial access in March 2024, covering air and sea borders, before achieving full membership, including land borders, in January 2025. Today, the Schengen Area stands at 29 countries, and Cyprus remains the most likely candidate for future accession, although a firm date has not yet been confirmed due to the island's ongoing political division.
Why Is It Called "Schengen"?
Here is the part that surprises most people: Schengen is not a region, a treaty organization headquartered in Brussels, or an abbreviation. It is the name of a tiny village. Schengen is a small town in the far southeastern corner of Luxembourg, sitting exactly where the borders of Luxembourg, France, and Germany meet along the Moselle River.
The location was chosen deliberately for its symbolism. By signing the original agreement on a boat floating in the river at the meeting point of three nations, the founding countries wanted to send a clear message: this was about erasing the very borders that separated them. The village itself has a population of only a few thousand people, yet its name is now recognized by travelers and immigration officials on every continent. Schengen today is something of a pilgrimage site for travel enthusiasts, home to a small European Museum dedicated to the history of the agreement and the broader European integration project.
Full List of Schengen Countries in 2026
Below is the complete and updated list of all 29 Schengen countries, along with their capital cities, whether they belong to the European Union, and the currency they officially use.
| Country | Capital City | EU Member | Official Currency | Approx. GDP Per Capita (USD, Nominal) |
|---|---|---|---|---|
| Austria | Vienna | Yes | Euro | 58,000 |
| Belgium | Brussels | Yes | Euro | 54,000 |
| Bulgaria | Sofia | Yes | Euro | 17,000 |
| Croatia | Zagreb | Yes | Euro | 22,000 |
| Czech Republic | Prague | Yes | Czech Koruna | 32,000 |
| Denmark | Copenhagen | Yes | Danish Krone | 68,000 |
| Estonia | Tallinn | Yes | Euro | 30,000 |
| Finland | Helsinki | Yes | Euro | 53,000 |
| France | Paris | Yes | Euro | 46,000 |
| Germany | Berlin | Yes | Euro | 55,000 |
| Greece | Athens | Yes | Euro | 25,000 |
| Hungary | Budapest | Yes | Hungarian Forint | 21,000 |
| Iceland | Reykjavik | No | Icelandic Krona | 85,000 |
| Italy | Rome | Yes | Euro | 40,000 |
| Latvia | Riga | Yes | Euro | 24,000 |
| Liechtenstein | Vaduz | No | Swiss Franc | 180,000 |
| Lithuania | Vilnius | Yes | Euro | 31,000 |
| Luxembourg | Luxembourg City | Yes | Euro | 132,000 |
| Malta | Valletta | Yes | Euro | 39,000 |
| Netherlands | Amsterdam | Yes | Euro | 63,000 |
| Norway | Oslo | No | Norwegian Krone | 93,000 |
| Poland | Warsaw | Yes | Polish Zloty | 25,000 |
| Portugal | Lisbon | Yes | Euro | 29,000 |
| Romania | Bucharest | Yes | Romanian Leu | 19,000 |
| Slovakia | Bratislava | Yes | Euro | 24,000 |
| Slovenia | Ljubljana | Yes | Euro | 34,000 |
| Spain | Madrid | Yes | Euro | 35,000 |
| Sweden | Stockholm | Yes | Swedish Krona | 57,000 |
| Switzerland | Bern | No | Swiss Franc | 99,000 |
These figures are rounded approximations based on recent international projections and are meant only as a general reference. GDP per capita changes from year to year and can vary depending on the reporting organization, so always check the latest data from the International Monetary Fund or World Bank before using these numbers for research or business purposes.
Currency Across the Schengen Countries
One of the most common misconceptions is that all Schengen countries use the Euro. This is not true. Being part of Schengen relates to border-free travel, while using the Euro relates to membership in the Eurozone, and these are two separate systems.
Twenty of the twenty nine Schengen countries currently use the Euro as their official currency. This includes long-standing members like Germany, France, and Italy, as well as newer adopters. Bulgaria became the most recent country to switch to the Euro, officially replacing its lev on January 1, 2026, and becoming the 21st member of the wider Eurozone overall (which also includes Cyprus, a non-Schengen country).
The remaining nine Schengen countries keep their own national currencies. These include Switzerland and Liechtenstein, both using the Swiss Franc, Norway with the Norwegian Krone, Iceland with the Icelandic Krona, Denmark with the Danish Krone, Sweden with the Swedish Krona, and three Central European nations, the Czech Republic, Hungary, and Poland, which continue to use their own currencies while remaining committed EU members. Romania also kept the Leu even after fully joining Schengen. If you are traveling across several Schengen countries, it is smart to carry a multi-currency travel card or check exchange rates in advance, since a single trip could involve two or three different currencies even though you never show your passport at the border.
GDP Per Capita of Schengen Countries: What It Tells Us
GDP per capita is often used as a simple, if imperfect, measure of how wealthy an average citizen of a country is. Within the Schengen Area, the differences are dramatic. Small, highly specialized economies like Luxembourg and Liechtenstein post some of the highest GDP per capita figures anywhere in the world, largely thanks to their concentrated financial and banking sectors combined with tiny populations. Switzerland and Norway follow closely behind, powered by strong banking systems, pharmaceuticals, and, in Norway's case, oil and gas revenue.
At the other end of the scale, Bulgaria, Romania, Croatia, and Hungary have considerably lower GDP per capita figures, though all of them have shown strong year-on-year growth as their economies continue to modernize and integrate more deeply with the rest of the EU. Countries like Germany, France, the Netherlands, and Austria sit comfortably in the upper-middle range, representing the traditional economic core of Western Europe.
Understanding these differences matters for more than just curiosity. If you are planning to relocate, invest, or start a business, the cost of living, average salaries, and tax structures often correlate closely with GDP per capita. Wealthier Schengen countries tend to have higher costs of living but also stronger job markets and social services, while countries with lower GDP per capita often offer a lower cost of living and, in several cases, more accessible investment or residency thresholds.
How Can You Become Part of the Schengen Area? Real Pathways for People Worldwide
This is the question most people actually care about. Becoming "part of" the Schengen Area can mean different things depending on your goals, whether that is a short visit, a long-term move, studying, working, or investing. Below are the most common and realistic pathways used by people from every continent to legally live, work, study, or gain residency within Schengen countries.
1. Short-Stay Schengen Visa (Type C)
This is the standard tourist and business visa that allows citizens of visa-required countries to stay up to 90 days within any 180-day period across the entire Schengen Area. It does not grant the right to work but is often the first step for people exploring their options before applying for a longer-term program.
2. National Long-Stay Visas (Type D)
Each Schengen country issues its own long-stay visa for people who want to remain longer than 90 days for work, study, or family reasons. These are issued by individual national governments rather than by the Schengen system as a whole, and requirements differ from country to country.
3. EU Blue Card for Skilled Workers
The EU Blue Card is a work and residence permit designed for highly skilled non-EU professionals who have a job offer meeting a minimum salary threshold in their host country. Germany, France, and the Netherlands are among the most active issuers of Blue Cards, and holders often gain a fast track toward permanent residency.
4. Digital Nomad Visas
In recent years, several Schengen countries have introduced dedicated visas for remote workers employed by companies outside the country they wish to live in. Portugal, Spain, Croatia, Greece, Italy, Malta, and Estonia all currently offer some form of remote work or digital nomad residence permit.
5. Investment and Golden Visa Programs
Several Schengen countries allow non-EU nationals to gain residency by making a qualifying investment, whether in real estate, government bonds, or a local business. Portugal, Greece, Italy, and Malta remain popular choices, although rules and minimum investment amounts are updated frequently, and some countries have tightened or discontinued their programs in recent years, so always confirm current terms directly with an immigration advisor before committing funds.
6. Student Visas
Studying at a recognized university in a Schengen country is one of the most reliable and affordable long-term pathways into the region. Many countries allow international graduates to convert their student residence permit into a job-seeker visa after completing their degree, opening the door to permanent residency later on.
7. Family Reunification
If you have a close family member who is already a legal resident or citizen of a Schengen country, most member states offer a family reunification visa that allows you to join them and, in many cases, work while there.
8. Job Seeker Visas
Germany and Austria, among others, offer job seeker visas that allow qualified professionals to enter the country for several months specifically to search for employment, after which they can switch to a work visa once hired.
Comparison Table of Popular Schengen Immigration Programs
| Program | Country Examples | Best For | Typical Requirement | Path to Permanent Residency |
|---|---|---|---|---|
| EU Blue Card | Germany, France, Netherlands | Skilled professionals with a job offer | University degree and minimum salary threshold | Yes, often within two to three years |
| Digital Nomad Visa | Portugal, Spain, Croatia, Greece, Malta | Remote workers and freelancers | Proof of stable remote income | Varies by country, often possible after several years |
| Investment or Golden Visa | Portugal, Greece, Italy, Malta | Investors and high-net-worth individuals | Qualifying investment in property, funds, or business | Yes, usually within five years |
| Student Visa | Germany, France, Netherlands, Italy | International students | Admission to an accredited institution | Yes, via job seeker or work permit after graduation |
| Job Seeker Visa | Germany, Austria | Qualified professionals without a job offer yet | Recognized qualifications and sufficient funds | Yes, once local employment is secured |
| Family Reunification | All Schengen countries | Spouses, children, and dependents of residents | Proof of relationship and sponsor's legal status | Yes, tied to the sponsor's residency progression |
| National Long-Stay Visa (Type D) | Country-specific | Work, study, or long private stays | Purpose-specific documentation | Depends on the visa category chosen |
Every program above has its own eligibility rules, processing timelines, and documentation requirements, and these details are updated by national governments on a regular basis. Before submitting any application, it is worth speaking with a qualified immigration consultant or checking directly with the relevant embassy or consulate to confirm the current requirements for your specific situation.
Ready to Start Your Journey?
If you have read this far, chances are you are seriously considering making a move toward the Schengen Area, whether for travel, study, work, or long-term residency. Every pathway described above has its own timeline and paperwork, and getting personalized guidance early on can save months of confusion later. If you would like tailored support in identifying the right program for your background and goals, you can start your Schengen application assessment here.
Frequently Asked Questions
What is the Schengen Area exactly?
The Schengen Area is a group of 29 European countries that have abolished passport and border checks at their shared internal borders, allowing free movement of people between them.
Why are they called Schengen countries?
They are named after Schengen, a small village in Luxembourg, where the original agreement was signed in 1985 aboard a boat on the Moselle River at the point where Luxembourg, France, and Germany meet.
Is the Schengen Area the same as the European Union?
No. The European Union is a political and economic union, while the Schengen Area specifically governs border-free travel. Some EU countries, like Ireland and Cyprus, are not in Schengen, while some non-EU countries, like Switzerland and Norway, are full Schengen members.
How many countries are in the Schengen Area in 2026?
There are 29 countries in the Schengen Area as of 2026, following the full accession of Bulgaria and Romania and the earlier addition of Croatia in 2023.
Do all Schengen countries use the Euro?
No. Twenty of the 29 Schengen countries use the Euro. The remaining nine, including Switzerland, Norway, Iceland, Denmark, Sweden, Poland, Hungary, the Czech Republic, and Romania, use their own national currencies.
Which Schengen country has the highest GDP per capita?
Liechtenstein and Luxembourg consistently rank among the countries with the highest GDP per capita in the world, largely due to their small populations and concentrated financial sectors.
Can I move to a Schengen country without a job offer?
Yes, in certain cases. Job seeker visas, student visas, digital nomad visas, and investment-based residency programs allow entry without a confirmed employer, depending on the country and program chosen.
How long can I stay in the Schengen Area on a tourist visa?
Tourist and short-stay visitors can generally stay up to 90 days within any 180-day period across the entire Schengen Area combined, not per individual country.
What is the easiest way to gain long-term residency in a Schengen country?
The most accessible routes typically include studying at a local university, securing a skilled job offer for an EU Blue Card, applying for a digital nomad visa if you work remotely, or joining a family member who already holds legal residency.
Is Cyprus part of the Schengen Area?
Not yet. Cyprus is an EU member but has not joined the Schengen Area due to ongoing technical and political issues related to the island's division.