Malta's Citizenship by Investment Program Backed by EU's Advocate General

In a major legal development, the European Court of Justice Advocate General has recommended that the Court dismiss the European Commission's case against Malta's Citizenship by Investment program. 

The Commission argued that Malta's program breaks EU rules because it allows non-EU citizens to gain citizenship without a "genuine link" to the country. However, Advocate General Anthony Michael Collins backed Malta's position, saying that EU law does not require such a link and that citizenship decisions are up to each country.

This recommendation is a major win for Malta, as its golden passport scheme has faced both criticism and legal challenges. While the Advocate General's opinion is not legally binding, it could influence the final decision of the European Court of Justice.

This article discusses the case in more detail, the European Commission's concerns, and the advantages of Maltese citizenship.

What is Malta's Citizenship by Investment Program? 

Malta's Citizenship by Investment program, officially known as the The Granting of Malta Citizenship for Exceptional Services Regulations, issued by Legal Notice 437 of 2020 [S.L. 188.06], allows foreign individuals and their families to apply for Maltese citizenship by contributing to the country’s economic development. These regulations shall attract reputable applicants, who will bring useful knowledge and expertise to Malta, create new opportunities and contribute to the country’s economic development. First started in 2014 and updated in 2020, this program allows non-EU citizens to invest in Malta in exchange for citizenship. 

Applicants need to fulfil several conditions, including making a financial contribution to the Government of Malta of €600,000 for a 36-month residency or €750,000 for a 12-month residency. They must also buy or rent property and make a donation to the National Development and Social Fund. The goal of the program is to attract investors who can help Malta's economy grow. It includes strict checks to ensure applicants don't pose any security risks to Malta or the EU. 

Although the program has received some criticism, it remains an important part of Malta's plan to boost foreign investment.

The European Commission's Challenge 

The European Commission argued that Malta's Citizenship by Investment program breaks EU citizenship rules because it does not require a "genuine link" between the applicants and Malta. 

The Commission claimed that the program weakens the value of EU citizenship by giving citizenship without a real connection to the country. It referred to Article 20 of the Treaty on the Functioning of the European Union (TFEU), which discusses the rights of EU citizens. 

The Commission also raised concerns about security and money laundering risks connected to these types of programs. It argued that EU citizenship should not be sold without making sure the applicant has a true link to the country. 

Even though Malta improved its security checks, the Commission still believed that the program was against EU law, which led to this legal case.

EU Advocate General's Opinion 

The European Court of Justice Advocate General Anthony Michael Collins agreed with Malta's position in the ongoing EU citizenship case. He made the following key points:

• No genuine link required: Collins stated that EU law does not require a "genuine link" between applicants and the country when granting citizenship.
• National sovereignty: He emphasised that it is up to each EU member state to decide who can become a citizen, as citizenship is a matter of national sovereignty.
• Lack of EU rules on citizenship: EU law does not specifically define the rules for acquiring citizenship, so each country has the freedom to create its own laws in this area.
• Failure to prove a violation: The Advocate General concluded that the European Commission failed to prove that Malta's Citizenship by Investment program breaks EU laws.
• Potential impact on sovereignty: Collins warned that accepting the Commission's argument could reduce member states' control over their own citizenship policies and disrupt the balance between national and EU citizenship laws.

While his opinion is not legally binding, it strongly supports Malta. The final decision now rests with the European Court of Justice, though the Advocate General's opinions often influence the Court's rulings.

Advantages of Maltese Citizenship 

While the court case looks at the legal side of Malta's Citizenship by Investment program, it's also important to know why the program is popular with investors. Malta offers several key benefits for those who gain citizenship through this scheme, making it a good choice for people looking for more global travel options and financial advantages.

• Visa-free travel: Maltese citizens can travel to over 180 countries without needing a visa, including the US, Canada, Japan and Australia.
• EU access: With a Maltese passport, people can live, work, and study in any of the 27 EU countries, plus Iceland, Liechtenstein, Norway, Switzerland, and the UK.
• Sound tax system: Malta offers a favourable tax system for both individuals and businesses.
• Family citizenship: Maltese citizenship can be passed on to family members, including children and parents, offering long-term security.
  
  

These Maltese citizenship benefits make the Malta golden passport program popular with international investors.

The Bottom Line 

Malta's Citizenship by Investment program received strong support from the European Court of Justice Advocate General, who suggested that the Court dismiss the European Commission's case. 

The Commission argued that Malta's program breaks EU rules because it doesn't require a "genuine link" between applicants and the country. However, the Advocate General said that EU law doesn't demand such a link and confirmed that citizenship decisions are up to each country. 

The program remains popular with investors due to benefits like visa-free travel, access to the EU, and a sound tax system. A final court decision is still pending.

Our multilingual professionals at DZ Advisory are glad to assist you in understanding the benefits of Maltese Citizenship by investment for you and your family. If you would like to receive more information, please provide us with your contact details and one of our team members shall be in contact with you promptly.

 is currently preparing a completely new programme that aims to attract third-country nationals who are start-up investors wishing to permanently reside here, subject to achieving the required and legal criteria to successfully establish a fruitful business for Malta. This new permit should entice entrepreneurs to invest and register their start-ups in Malta, bringing along their new and innovative ideas which will help shape the future of the Maltese industries and economy.

The Agency is currently preparing a completely new programme that aims to attract third-country nationals who are start-up investors wishing to permanently reside here, subject to achieving the required and legal criteria to successfully establish a fruitful business for Malta. This new permit should entice entrepreneurs to invest and register their start-ups in Malta, bringing along their new and innovative ideas which will help shape the future of the Maltese industries and econo