The decision, prompted by an EU commission lawsuit, could lead to significant penalties for Malta if the scheme isn't restructured.
Malta's Golden Passport Scheme: EU Court Declares Illegality
Malta's Golden Passport Scheme: EU Court Declares Illegality
In a landmark ruling, the EU's top court finds Malta's citizenship-by-investment program violates EU law, raising questions about member state regulations.
Malta's controversial golden passport initiative, which allows foreign investors to obtain Maltese citizenship for a financial price, was deemed illegal by the European Union's Court of Justice. The ruling, which comes after the EU Commission initiated legal proceedings against Malta in 2022, highlights the program's conflict with EU law. Applicants must invest a minimum of €600,000, in addition to renting or purchasing property and contributing €10,000 to charitable causes, in return for citizenship that grants them rights across EU nations.
The court stated that this practice reduces the process of acquiring nationality to a transactional affair, undermining the core principles of EU citizenship. Although Malta's government has yet to issue a formal response, former Prime Minister Joseph Muscat described the ruling as "political" and expressed optimism that the program could continue with modifications.
The stakes are high for Malta, as the country faces potential sanctions if the ruling is not adhered to. While previous legal opinions suggested that the EU lacked concrete requirements for a "genuine link" between applicants and the member states, the recent judgment underscored that Malta's scheme risks eroding trust amongst EU countries. Moreover, the EU has expressed concerns about security threats and the potential for money laundering linked to such citizenship schemes, reinforcing calls for their total abolition.
