Malta is in the midst of an ongoing crisis with European Union as it remains the last member state to run the controversial “golden passport” scheme.
The program allows foreigners to effectively purchase EU citizenship by investing at least €690,000 (£577,840).
This practice has drawn strong criticism from various parties Brussels due to concerns over security, money laundering and the integrity of EU citizenship.
Despite pressure from the European Commission, which urged Malta to discontinue the program, a legal opinion issued on 4 October by Advocate General Anthony Collins for the Court European Union can provide a legal reprieve.
In his non-binding report, Collins said that citizenship decisions rested entirely with each member state.
He wrote: “Member States have decided that each country has the right to determine who has the right to become one of its citizens and, as a consequence, who is an EU citizen.”
This interpretation has led to tensions within the EU, with the Commission arguing that Malta’s golden passport scheme undermines the bloc’s principles of “genuine cooperation and security”.
European Commission launched legal action two years agotook Malta to court over its investor citizenship program, accusing it of violating EU law.
The Commission argues that granting citizenship without a genuine relationship with a member state is incompatible with the values of the European Union.
In 2022, EU Justice Commissioner Didier Reynders said: “EU values are not for sale.”
Despite this, passport sales have proven to be hugely impactful for Malta, generating around £670 million between 2014 and 2020.
However, here it is Russiainvasion UkraineMalta suspended its scheme for Russian and Belarusian citizens but continued to offer it to citizens of other countries.
The decision has come under additional scrutiny from the EU, which is seeking stricter regulations on similar programs across Europe.
The golden passport program has been gradually phased out in other EU countries. Cyprus canceled its scheme in 2020, and Bulgaria following suit in 2022.
Other member countries, such as Portugal And Spanishhave revised or scaled back their golden visa program, which offers residency permits to high net worth individuals.
The court is expected to issue a decision soon, which could impact the future of Malta’s citizenship-for-investment scheme.
However, to date, the Maltese government remains adamant that its policies do not conflict with EU agreements.