Malta’s “Golden Passport” Program Ruled Illegal by EU’s Top Court

Malta, formerly a British naval base in the Caribbean, is now more of a tax haven. The cannons are just for show, and the island nation has come under fire from the EU’s highest court. Image Pixabay public domain.

Introduction to the “Golden Passport” Program

Malta’s “golden passport” program, which lets people buy citizenship through financial investment, has been ruled illegal under European law by the EU’s top court.

The European Commission took Malta to court in 2022. They said the program gave foreigners a Maltese passport—and the right to live and work anywhere in the EU—in exchange for at least €600,000 (£509,619), buying or renting property, and donating €10,000 to charity.

EU Court of Justice Ruling

The EU Court of Justice said the scheme “amounts to rendering the acquisition of nationality a mere commercial transaction.” In other words, it turns citizenship into something you can simply buy.

The Court of Justice of the European Union said Tuesday the program was nothing short of the “commercialisation” of citizenship, violated “good faith” and “mutual trust” between EU member countries, and “infringed EU law.”

Reaction to the Ruling

Malta’s government has not yet reacted to the ruling. Former Prime Minister Joseph Muscat called the decision “political.” He suggested the program could continue with “some changes.”

If Malta does not follow the ruling, it could face heavy fines.

The court said, “the acquisition of Union citizenship cannot result from a commercial transaction.” EU citizenship must be more meaningful than just a business deal.

Malta’s Defense and Previous Actions

Malta has defended its actions, saying it had correctly followed EU treaties, according to Reuters.

After Russia invaded Ukraine in 2022, Malta stopped offering golden passports to Russian and Belarusian nationals.

This court decision goes against an earlier opinion from Advocate General Anthony Collins last October. Collins had said the European Commission did not prove that EU law requires a “genuine link” between the person and the country giving citizenship. He said each EU member should decide its own citizenship rules.

Implications of the Ruling

While countries can decide how to grant nationality, the court said Malta’s scheme “jeopardises the mutual trust” between EU nations.

The EU has long asked countries to stop selling citizenship, warning that such schemes carry risks of money laundering, tax evasion, corruption, and security problems.

Sources: BBC, Politico.

Conclusion

The ruling by the EU’s top court is a significant blow to Malta’s “golden passport” program, which has been criticized for allowing individuals to buy citizenship without a genuine link to the country. The court’s decision emphasizes the importance of EU citizenship being more than just a business deal, and highlights the need for countries to prioritize the integrity of their citizenship programs.

Frequently Asked Questions

Q: What is Malta’s “golden passport” program?

A: Malta’s “golden passport” program allows individuals to buy citizenship through financial investment, in exchange for a Maltese passport and the right to live and work anywhere in the EU.

Q: Why was the program ruled illegal by the EU’s top court?

A: The program was ruled illegal because it turns citizenship into a commercial transaction, violating EU law and jeopardizing the mutual trust between EU nations.

Q: What are the implications of the ruling for Malta and other EU countries?

A: The ruling may lead to Malta facing heavy fines if it does not comply, and highlights the need for EU countries to prioritize the integrity of their citizenship programs and avoid selling citizenship to individuals without a genuine link to the country.