Malta will respect the EU court's decision to declare the golden passport scheme in violation of EU law and will immediately start reviewing the judgment so it can update its citizenship rules to match the court’s guidelines, the government said.
The government was reacting to the EU Court of Justice decision that found that the acquisition of EU citizenship cannot result from a commercial transaction. Malta has infringed EU law, by establishing and operating the 2020 investor citizenship scheme, which amounts to the commercialisation of the grant EU citizenship, the court ruled.
While acknowledging that member states are free to lay down the conditions under which citizenship is granted, the court ruled this must be done in compliance with EU law.
In a statement, the government said: “As always, the government of Malta respects the decisions of the courts. At this moment the legal implications of this judgment are being studied in detail, so that the regulatory framework on citizenship can then be brought in line with the principles outlined in the judgment.”
It stressed that those who obtained citizenship under the scheme would not be impacted.
“Decisions taken under both the current and the previous legislative framework remain valid,” it said.
Call for national unity
In a Facebook post, Prime Minister Robert Abela said the scheme was created for the benefit of the Maltese and Gozitans and, over the years, some €1.4 billion was invested in the people.
The government will keep working for the benefit of the people and, while respecting the decision of the courts, it will immediately start working to ensure that the framework conforms with the judgments so that the people will continue benefiting from the wealth created, Abela said.
The government statement went on to call for national unity and how "everyone should rise above partisanship in favour of the national interest". The statement charged at the Nationalist Opposition, insisting it did its utmost to cause "maximum damage", particularly at EU level.
The government said that, ever since the European Commission initiated the infringement proceedings in 2020, it had consistently expressed its firm intention to defend this framework.
This position was adopted particularly because issues related to citizenship fall entirely within the national sphere of competence. It noted that this principle was confirmed by the opinion of Advocate General Anthony Michael Collins, published on October 4, 2024, who also concluded that there was no case against Malta.
“The Maltese government notes that although the court confirmed the principle of national competence, it ignored the Advocate General’s recommendation that there was no case against Malta and instead delved into other aspects,” it said.
The government then went on the defend the scheme - described by former Prime Minister Joseph Muscat, who introduced it, as “the best in the world.”
Millions in wealth generated
The government said it takes great pride in the wealth generated through this framework over recent years, which enabled the establishment of a national fund for investment and savings to address the needs of both present and future generations.
Since its inception in 2015, this legislative framework has directly generated over €1.4 billion in revenue for Malta. These funds have always been divided between the National Development and Social Fund (NDSF), through which several beneficial projects and investments were and continue to be carried out, and the Consolidated Fund.
The government said that through the NDSF, significant investments were made in key sectors to improve the quality of life for the Maltese and Gozitan people. These included housing projects, socially focused projects, healthcare investments.
Strategic investments were also made in the sports sector, both in athletes and infrastructure. Investments were also made in greening projects and numerous restoration initiatives to safeguard the national heritage.
Additionally, the framework generated €339 million from property purchases, €158 million from property rentals, and €236 million were invested in bond acquisitions. Applicants also contributed over €10 million in direct philanthropic donations to voluntary organisations across the country.
The government said it remains committed to continuing to attract the best investment.