The European Union's top court has ruled that Malta's "golden passport" scheme, which grants citizenship through financial investment, breaches EU regulations by commercializing nationality.
Malta's Golden Passport Scheme Declared Illegal by EU Court
Malta's Golden Passport Scheme Declared Illegal by EU Court
EU Court of Justice Rules Malta's Investment-based Citizenship Scheme Violates European Law
Malta's controversial program, which allows individuals to obtain citizenship through financial contributions, has come under fire following a ruling from the European Union's Court of Justice. The court determined that the scheme violates European law by reducing the acquisition of nationality to a monetary exchange. The EU Commission initiated legal proceedings against Malta in 2022, leading to this judgment which states that citizenship cannot be treated as a commercial transaction.
Under the current scheme, foreign investors can secure a Maltese passport by paying a minimum of €600,000 (around £509,619), satisfying specific property investment requirements, and donating €10,000 to charity. The ruling puts Malta at risk of significant financial penalties if the government does not heed the court's directive.
Former Prime Minister Joseph Muscat has criticized the ruling as politically motivated, expressing hope that the scheme can persist with adjustments. Malta's government has yet to comment officially on the court's decision. The EU court emphasized that citizenship must not be decided solely based on financial transactions, as it undermines trust among member states.
Prior to this ruling, the scheme was suspended for Russian and Belarusian nationals due to geopolitical tensions. Interestingly, a previous opinion from the court's Advocate General suggested the absence of a necessity for a "genuine link" between a citizen and their country for lawful citizenship, leaving sovereign decisions over nationality in the hands of member states.
However, the court's latest declaration underlines the EU's longstanding stance against investor citizenship schemes, citing significant issues regarding security, potential corruption, and risks of money laundering associated with such arrangements.
