Malta’s golden passport scheme to stay, EU court signals.
EU Advocate General Recommends Dropping Case Against Malta’s Golden Passport Program.
Key Takeaways
- The Advocate General of the European Court of Justice Says EU countries have the right to sell citizenship through the Golden Passport Program.
- The EU Advocate General Michael Collins’ comments came in response to the European Commission’s comments that Malta's program violates the EU rules.
- Collins recommended that the European Court of Justice drop the case against Malta.
European Union member states are permitted to offer citizenship for sale via the Golden Passport program, contingent upon their implementation of measures to maintain its integrity through thorough due diligence.
Currently, numerous European nations provide residency and citizenship options for international individuals via the Golden Visa and Golden Passport initiatives, which play a vital role in enhancing the economies of these countries. The European Commission has consistently urged EU member states that provide such programs to terminate them after allegations of their involvement in irregular affairs such as money laundering and corruption.
Malta offers a citizenship program titled “Malta Citizenship by Naturalization for Exceptional Services by Direct Investment” (MEIN), which provides two distinct options:
- Individuals can obtain Maltese citizenship through a direct investment of €600,000 after a period of 36 months.
- For an investment of €750,000, citizenship can be granted after just 12 months.
The Advocate General of the European Court of Justice, Michael Collins said that that the constitutional definition of EU citizenship does not include references to genuine links. Collins argued that this requirement was created by EU politicians subsequently and lacks any legal authority and has indicated that EU nations have the right to sell their citizenship as long as they take steps to maintain their integrity through thorough due diligence. Michael Collins said that the European Court of Justice (ECJ) should dismiss the case against Malta.
The European Commission took legal action several years ago, arguing that the golden passport program violated Malta's obligation to engage in sincere cooperation. Malta remains committed to its Golden Passport Program, even as other nations choose to terminate such programs.
Malta's Golden Passport Program has gained popularity during the European debt crisis when nations started selling residency to attract foreign investment.
Golden passport programs have been gradually scrapped out in other EU countries like: Cyprus in 2020, and Bulgaria in 2022.
Portugal and Spain, have made adjustments or reduced the scope of their golden visa programs, which provide residence permits to individuals with significant financial resources.
