In a landmark ruling, Malta's controversial golden passport scheme, which allows foreign nationals to acquire citizenship through investment, has been deemed illegal by the EU's Court of Justice, threatening the nation's immigration policy.
Malta's Golden Passport Scheme Deemed Illegal by EU Court
Malta's Golden Passport Scheme Deemed Illegal by EU Court
The EU's highest court declares Malta's financial citizenship program violates European law.
Malta's contentious golden passport program, which has allowed individuals to obtain citizenship through significant financial investments, has received a decisive blow from the EU's top court, which ruled that it contradicts European law. This decision follows a legal challenge presented by the EU Commission in 2022, which aimed to halt the sale of Maltese citizenship that grants passport holders the right to reside and work in any EU member country.
The Court of Justice firmly stated that such a scheme constitutes "rendering the acquisition of nationality a mere commercial transaction." Under this program, applicants are required to pay a minimum of €600,000 (approximately £509,619), invest in property of a specified value, and make a charitable donation of €10,000. The court emphasized that the process for acquiring Union citizenship should not stem from straightforward financial transactions.
While the ruling awaits a response from the Maltese government, former Prime Minister Joseph Muscat has labeled the ruling as “political,” expressing hope that the scheme may continue with possible modifications. However, Malta could face significant financial penalties if it fails to adhere to the court’s decision.
The court underscored the principle that the acquisition of Union citizenship must not undermine trust among member states. In light of ongoing concerns over security risks, including money laundering and tax evasion, the EU has consistently urged nations to phase out such investor citizenship programs. Notably, Malta paused the scheme for nationals from Russia and Belarus last year amid geopolitical tensions.
The ruling marks a pivotal moment for the future of citizenship-by-investment initiatives within the European Union, as it reinforces the legal boundaries surrounding nationality acquisition across member nations.
