Information
The European Court of Justice (ECJ) has ordered Malta to end its “golden passport” program, declaring it illegal under European Union law. The court ruled that granting citizenship in exchange for predetermined payments turns nationality into a commercial transaction, undermining the integrity of EU citizenship. The program, introduced in 2020, allowed investors to apply for citizenship after 12 months of residency, provided they met financial conditions such as owning expensive property, paying significant rent, contributing to the government, and donating to charities. The ECJ emphasized that Malta must comply immediately, warning that continued defiance could result in financial penalties.
In response, Malta stated it would respect the ruling while assessing its legal impact, though it defended the program’s economic contributions, noting it generated €1.4 billion since 2015. Former Prime Minister Joseph Muscat called the court’s decision politically motivated and argued for reform rather than termination of the program. Transparency advocates and anti-corruption campaigners welcomed the ruling, seeing it as a victory against money laundering and corruption within the EU. Malta remains the only EU nation to maintain such a program, as others like Cyprus and Bulgaria have already abolished theirs. Meanwhile, the court’s decision coincides with news that former U.S. President Donald Trump is planning a similar “gold card” visa initiative.
Source: AP, AFP
So What
This is an interesting yet likely positive ruling as while visas by investment are still common in Europe, this limits the individual to one country, whereas citizenship could allow them to move locations again. Both types of programs, however, are still controversial as they can be used to allow criminals to move abroad along with their ill-gotten gains. Though most countries now implement strict due diligence processes, some programs are still seen as controversial.
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