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July 03 2025 12:50:59 by PCLMedia
 
Malta is preparing to revamp its controversial citizenship-by-investment program — commonly known as the “golden passport” scheme — following a landmark ruling by the European Court of Justice (ECJ) that declared such practices incompatible with EU law.

The Ministry for Home Affairs has formally introduced a motion in Parliament to amend the Maltese Citizenship Act. The bill, currently at its first reading, offers no specific details yet, in line with standard legislative procedure at this stage. However, it is explicitly intended to align Malta’s legal framework with the ECJ's judgment issued in April 2025. The ECJ Ruling: A Turning Point for Citizenship-by-Investment in the EU

The ECJ’s ruling was unequivocal: granting citizenship in exchange for payment and investment amounts to the “commercialisation of nationality,” undermining the mutual trust and solidarity that should exist between a member state and its citizens. The Court emphasized that EU citizenship carries with it not just rights, but responsibilities, and must be grounded in a “genuine link” between the individual and the state.

Malta’s programme, operational since 2014, offered a pathway to EU citizenship for affluent non-EU nationals willing to invest substantial sums—often exceeding €1 million—through a mix of real estate purchases, government contributions, and philanthropic donations. In return, applicants gained access to the EU’s full range of benefits: freedom of movement, residency, and the right to work and study across 27 member states.

Malta Under Pressure: Infringement Proceedings and Policy Reform

The European Commission has long criticized Malta’s approach, initiating infringement proceedings and warning that selling EU citizenship runs counter to the principle of sincere cooperation between member states. The ECJ ruling has now provided legal backing to these concerns, forcing Malta’s hand.

While the details of the legislative amendments are still under wraps, the government is expected to either significantly tighten eligibility criteria or potentially replace the scheme with a residency-focused alternative, as some other EU countries have done under pressure from Brussels.

How Malta Compares with Other EU Countries

Malta is not alone in offering investment-related immigration paths, but its outright sale of citizenship — rather than residency — has drawn the most criticism. Here's how other EU countries have adapted:

Cyprus: Once operated a similar citizenship-by-investment program, which it scrapped in 2020 following EU pressure and internal scandal. Cyprus now offers only residency permits to investors, with a pathway to naturalisation after several years and proof of integration.

Portugal: Offers a popular "golden visa" programme granting residency—not citizenship—through investment in real estate or job creation. After five years of residency, applicants may apply for citizenship, subject to language and integration requirements. Portugal has recently tightened the scheme to exclude property investments in Lisbon and Porto.

Greece: Also provides a residency-by-investment scheme requiring real estate purchases worth at least €250,000. While generous, it does not grant immediate access to citizenship.

Spain and Italy: Offer residency routes through investment but require long-term residence, language proficiency, and cultural integration for naturalisation.

What sets Malta apart is the direct pathway to citizenship with no meaningful residency or integration requirements—something the EU Court has now ruled cannot stand under EU law.

What’s Next for Malta?

With the legislative wheels now in motion, Malta must walk a fine line between protecting its national interests and conforming to EU principles. The economic benefits of the golden passport scheme — reportedly generating over €1 billion in revenue since 2014 — are undeniable. However, these financial incentives now collide with the EU’s legal and ethical standards.

The coming months will reveal whether Malta can craft a reformed scheme that respects both EU law and its own strategic priorities. It is likely that any future model will shift from outright citizenship to investment-linked residency, mirroring the more sustainable—and legally defensible—approaches taken by other EU member states.
 

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