The Citizens' Rights Directive 2004/38/EC (also sometimes called the "Free Movement Directive") sets out the conditions for the exercise of the right of free movement for citizens of the European Economic Area (EEA), which includes the member states of the European Union (EU) and the three European Free Trade Association (EFTA) members Iceland, Norway and Liechtenstein. Switzerland, which is a member of EFTA but not of the EEA, is not bound by the Directive but rather has a separate multilateral sectoral agreement on free movement with the EU and its member states.^[1]

It consolidated older regulations and directives, and extended the rights of unmarried couples. It gives EEA citizens the right of free movement and residence across the European Economic Area, as long as they are not an undue burden on the country of residence and have comprehensive health insurance.^[2] This right also extends to close family members that are not EEA citizens.

The Directive contains the following chapters:

• Chapter I (articles 1–3): General provisions (subject, definitions and beneficiaries)
• Chapter II (articles 4–5): Right of exit and entry
• Chapter III (articles 6–15): Right of residence
• Chapter IV: Right of permanent residence
  • Section I (articles 16–18): Eligibility
  • Section II (articles 19–21): Administrative formalities
• Chapter V (articles 22–26): Provisions common to the right of residence and the right of permanent residence
• Chapter VI (articles 27–33): Restrictions on the right of entry and the right of residence on grounds of public policy, public security or public health
• Chapter VII (articles 34–42): Final provisions

Pursuant to articles 4 and 5 of the directive, any EEA citizen can leave their own country and enter another EEA state without a visa by presenting a valid passport or national identity card. If an EEA citizen is unable to present a valid passport or national identity card at the border, they must nonetheless be afforded every reasonable opportunity to obtain the necessary documents within a reasonable period of time or corroborate or prove by other means that they are covered by the right of free movement.

The directive applies to any EEA citizen who is moving to and living in an EEA state other than their own (the exclusion is based on the principle of non-interference with purely national issues). However, it also applies when a European citizen is moving back to their home country after staying in another EEA state, as defined in the case of Surinder Singh.^[3] For dual citizens with two EEA nationalities, the directive can apply in any EEA state. Temporary limitations can be put in place for the new member states of the EU.

To be fully covered by the European right of free movement, the EEA citizen needs to exercise one of the four treaty rights:

• working as an employee (this includes looking for work for a reasonable amount of time),
• working as a self-employed person,
• studying,
• being self-sufficient or retired.

These rights are named after the Treaty of Rome, which defines the freedom of movement for workers. They have been extended over time, and are mainly of historical significance by now, since being self-sufficient has been added to the list. As long as a citizen has sufficient money or income not to rely on public funds and holds comprehensive health insurance, they exercise one or more treaty rights. If no treaty right is exercised, the right of free movement is limited to three months.

Family members are also covered by the right of free movement, but only as a dependent of the EEA citizen. The right is limited to the EEA state in which the EEA citizen is exercising treaty rights. In certain cases (e.g. divorce after at least 3 years of marriage where 1 year must have been spent in the host member state), the family member can retain the right of residence. A family member is defined as:

• the spouse,
• the registered partner,
• a child under the age of 21, or
• a dependent child or parent (of the EEA citizen or partner).

There is a second category of extended family members, which can be included at the discretion of national legislation. It covers dependent relatives (especially siblings), dependent household members and unmarried/unregistered partners in a "durable relationship".

The right of free movement is granted automatically when the requirements are fulfilled, and it is not subject to an administrative act. However, member states may require the EEA citizen and family members to register with the relevant authorities. The relevant documentations are:

• an entry visa for non-EEA family members if they are Annex I nationals and do not hold a residence card of a family member of a Union citizen issued by another member state,
• a residence certificate (for EEA citizens) or a residence card (for non-EEA family members), which may be valid for up to 5 years and confirms the right of residence,
• a permanent residence certificate or a permanent residence card, which certifies the right of permanent residence.

Permanent residence is acquired automatically after exercising treaty rights for 5 years, with absences of normally less than 6 months a year, a single absence less than 12 months in certain circumstances (birth, severe sickness, etc.), or longer for military services.^[4] Permanent residence removes any restrictions that are in place concerning access to public funds (such as unemployment benefits, a state pension etc.), although some of these restrictions are already lifted after a period of 3 months. Permanent residence is only lost after an absence of 2 years.

All applications covered by the directive are free, or require at most a moderate fee similar to comparable national documents.

• Free Movement of Workers Regulation 2011
• Freedom of movement for workers
• Internal market
• Ireland's Stamp 4
• UK's European Economic Area Family Permit
• Visa policy in the European Union
• Saenz v. Roe, 526 U.S. 489 (1999)
• Shapiro v. Thompson, 394 U.S. 618 (1969), the Court struck down a durational residency requirement for eligibility for welfare benefits