European Court Supports Malta's Citizenship by Investment Program
The European Court of Justice has ruled in favor of Malta's controversial citizenship-for-payment scheme, affirming that it does not violate EU law. This decision could set a precedent for similar programs across Europe, which allow wealthy individuals to obtain citizenship in exchange for significant financial investments.
The ruling comes as a response to the European Commission's challenge against Malta's program, which requires a minimum investment of €600,000 (approximately $661,590) along with property purchase and optional donations. The court's general counsel, Anthony Collins, stated that the European Commission did not provide adequate evidence to support claims that EU law mandates a
genuine link
between a member state and citizenship applicants. Each EU country retains the authority to decide its own criteria for citizenship eligibility.
The Maltese Golden Passport Program
Malta's golden passport program has attracted wealthy individuals globally, including high-profile figures from Russia and the entertainment industry. Participants gain the right to live and work in any EU member state, making it an appealing option for those seeking greater mobility within Europe.
Despite its popularity, the program has faced significant criticism. The European Commission has raised concerns about potential risks associated with money laundering and security threats linked to the program. In September 2022, the Commission initiated legal action against Malta, arguing that the exchange of citizenship for predetermined financial payments undermines the principle of sincere cooperation in EU law.
Impact on European Citizenship Programs
The ruling is expected to have far-reaching implications for citizenship and residency programs throughout Europe. Countries like Portugal, Ireland, Greece, and Hungary have established similar investment-based citizenship schemes, particularly following the European debt crisis as a means to attract foreign investment. Collectively, these programs have generated over €21 billion in revenue for participating nations from 2011 to 2019, according to Bloomberg statistics.
The European Court's decision may redefine the standards and regulations governing citizenship by investment in Europe, potentially leading to a more unified approach among member states regarding the issuance of EU citizenship.
