On 19 May 2025, the European Council and the European Parliament reached a provisional agreement that allows EU Member States to gradually introduce the Entry/Exit System (EES) over a six-month period. The EES is an IT system designed to mitigate irregular migration to the Schengen Area (encompassing all EU Member States except Cyprus and Ireland) and expedite the entry and exit of bona fide non-EU nationals traveling for short stays. It will register non-EU nationals' entry into, and departure from, the Schengen Area (including their biometric information) and replace the current manual process of stamping passports. The EES will apply to all non-EU citizens, including visa-exempt and visa-requiring nationals, who cross the external borders of the Schengen Area. This new system was initially set to be introduced in October 2022, but its launch was delayed due to IT issues and concerns about border controls. In December 2024, the European Commission proposed a progressive implementation of the EES.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.