Malta’s Golden Passport Scheme Survives EU Legal Challenge
Malta‘s controversial “golden passport” scheme, which allows wealthy individuals to buy EU citizenship through a large financial investment, has long stirred debates across Europe.
While critics argue it threatens the security and integrity of the EU, a recent legal opinion might just keep it alive. The European Court of Justice (CJEU) suggests that every state can independently determine who is entitled to be one of its nationals.
On October 4th, Advocate General Anthony Collins of the EU’s Court of Justice issued a statement backing Malta’s right to grant citizenship in exchange for investments. The final decision rests with the EU Court of Justice, which will rule on the matter soon. Although the court typically aligns with Advocate General opinions, it’s not guaranteed.
Malta is one of the few EU Member States that still offers such a system. The Netherlands discontinued its program this year. Portugal has limited the scheme's real estate options, while Greece has increased its price.
The heart of the debate lies in national sovereignty. According to Collins, each EU member state retains the right to decide who qualifies for citizenship. This means Malta can continue offering its golden passports despite growing concerns from the European Commission.
“Member States alone determine who is entitled to be one of their nationals and, by extension, an EU citizen,”
Court’s Statement
However, the European Commission has been critical of Malta’s approach, arguing that it undermines the union’s cooperation and security framework. The commission’s legal battle dates back several years, raising concerns that wealthy individuals – with no ties to Malta – could gain full EU citizenship through a financial shortcut.
Citizenship With A Price
For a hefty investment of €690,000 or more, non-EU nationals can buy the benefits of EU citizenship including the right to live, work, and travel freely across the EU.
As an EU nation, Maltese passports allow holders to live and work anywhere inside the bloc.
The most significant concern surrounding these schemes is security. Critics argue that wealthy individuals, including sanctioned Russians, could use these citizenship programs to evade EU sanctions or launder money. Following the invasion of Ukraine, this has become a particularly pressing issue, with EU lawmakers calling for stricter controls on golden visas and a total ban on citizenship-by-investment programs.
In 2022, the European Parliament even declared such programs “objectionable from an ethical, legal, and economic point of view.”
What’s Next for Malta’s Residency Program?
While Malta's golden passport scheme is currently safe, its future still hangs in the balance. The final decision rests with the EU Court of Justice, which will rule on the matter soon. Although the court typically aligns with Advocate General opinions, it’s not guaranteed.
In the meantime, the European Commission remains firm in its stance. “We take note of the opinion,” a spokesperson said, “but we now await the court’s ruling.”
While golden passports make headlines, Malta also offers a residency-by-investment program for those seeking a less permanent commitment. The Malta Permanent Residency Programme (MPRP) allows non-EU nationals to reside in Malta after investing in property and making government contributions.
For individuals interested in establishing a foothold in the EU without full citizenship, the MPRP offers benefits such as the right to reside in Malta and visa-free travel across the Schengen Zone. However, applicants must meet strict eligibility requirements, including a minimum investment of €300,000 in property and other financial commitments.
As Malta’s golden passport program faces its day in court, it remains a symbol of the delicate balance between national sovereignty and collective European security. Will the EU Court of Justice allow the program to continue, or will Malta be forced to follow the path of Cyprus and Bulgaria? The upcoming decision could shape the future of citizenship-by-investment schemes across Europe.
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