EU vs Schengen Area are two terms that are often used interchangeably. However, they actually refer to different concepts.
Unfortunately, many digital nomads mix them up.
Therefore, I decided to dedicate an article to the differences and similarities between the European Union and the Schengen Area.
We will also have a look why this is important for digital nomads to understand the difference.
Key Takeaways on EU vs Schengen
- The European Union (EU) is a political and economic union with it’s own rules and regulations.
- The Schengen Area is zone without any internal border checks.
- Many countries of the EU are in Schengen and vice versa but they don’t fully overlap.
- The implications of the difference is minimal for EU citizens but more important for non-EU citizens who want to visit any of these countries.
What is the European Union (EU)
The European Union (EU) is a political and economic union of 27 member states.
It was formed to promote peace, economic cooperation, and political stability.
The EU has a single market and a customs union that allow for the free movement of goods, services, and people within its borders.
The EU also established a monetary union using the euro, which is used by 19 member states.
For digital nomads, it’s important to understand that the EU sets certain tax and immigration rules that apply to its member states.
What is the Schengen Area
The Schengen Area is a group of 28 countries that have abolished passport and other types of border controls at their mutual borders.
In this way they created a single area for travel purposes.
This means that as a digital nomad you can travel freely within the Schengen Area without showing their passport or other travel documents once you’re in.
It’s important to note that not all EU member states are part of the Schengen Area. And, not all Schengen Area countries are part of the EU.
On the one hand, Cyprus and Ireland are EU member states but are not part of the Schengen Area.
Furthermore, Bulgaria and Romania only joined the Schengen Area from March 2024 while already being part of the EU for a while.
On the other hand, Iceland, Liechtenstein, Norway and Switzerland are part of the Schengen Area but are not EU member states.
The UK was an EU member state until Brexit in 2020 but was never part of the Schengen Area.
EU vs Schengen: Main Differences
The European Union is a political and economic union with the idea to create a single market.
Furthermore, the European Union has authority to issue its own legislation on certain topics. Consequently, the member states need to follow these legislations.
The EU also has impact on the tax policies that countries have to follow. In that way, the European Union can have an impact on your taxes as a digital nomad.
The Schengen Area, on the contrary, is solely a passport-free travel zone with a harmonized external border and visa policy.
Once you are in the Schengen Area, there are no internal border checks.
Therefore, for most people in Europe, the EU is much more important and has a bigger impact on everyday life.
Nevertheless, there are also some projects in which all the countries from the EU and Schengen participate. The most notable one is the European Health Insurance Card.
What this Means for Travelers and Digital Nomads
If you are a citizen from an EU-country, the difference between the EU and the Schengen Area might impact you less.
You can travel freely within the Schengen Area and still establish yourself in countries which are part of the EU but not Schengen. In that last case, you’ll just have to show your passport at immigration.
However, for non-EU/Schengen citizens the impact is more important.
Therefore, these people need to pay a bit more attention. The Schengen Area has one common visa policy for short-term stays. Long-term visas remain the authority of the local countries.
Yet, if you visit a country which is not in Schengen, you will also need to check the local visa requirements for a short stay.
Many people make mistakes about this when it is a European country that isn’t in the Schengen Area.
FAQ
Let’s have a look at some Frequently Asked Questions about EU vs Schengen.
Why Some Countries are EU but Not Schengen
The process of joining the EU on the one hand and the Schengen Zone on the other hand are separate procedures.
For this reason, countries need to separately apply and meet certain conditions.
Ireland, for example, didn’t join Schengen because of its geographical location . They preferred to keep a Common Travel Area (CTA) with the United Kingdom.
Does Being in the EU Mean Being in Schengen?
If a country becomes the European Union member, it doesn’t automatically join the Schengen Area.
In order to join the Schengen Area, a separate procedure applies and it needs separate political approval.
For this reason you also see that some countries become an EU member first and only later join the Schengen Area.
Bulgaria and Romania are two countries who only joined the Schengen Zone recently. Yet, they already were EU members before.
Cyprus is another country planning to join Schengen after already being in the EU for years.
Can a Non-EU Country Be in Schengen?
Yes, a non-EU country can be in Schengen.
There are actually four countries which are not part of the European Union but which are still part of Schengen: Iceland, Liechtenstein, Norway and Switzerland.
This means you can also visit those countries without any passport check upon the border. Although in some cases routine checks still happen but it’s not the default process.
Can I Travel Freely if a Country is EU but Not in Schengen?
You cannot travel freely to a country that is in the EU but not in Schengen.
If you want to visit such country, you will have to go through a border check.
Furthermore, this country will have it’s own immigration rules which can differ from the Schengen Area.
Therefore, it’s important to check this before traveling there as you might need a separate visa.
Citizens of other EU-countries can still move to this country based on the free movement of people and won’t need a separate visa for this. Yet, they will also be subject to a passport check upon entry.
What’s the Difference in Visa Requirements?
Visitors from non-EU or Schengen countries can only stay in the Schengen Area for 90 days out of 180. Any time spent in a non-Schengen country, doesn’t count towards this balance.
Furthermore, you can apply for a short-term visa which is valid for the whole Schengen Area.
If you want to visit any of the European countries not part of Schengen, you need to check their separate visa requirements.