The European Court of Justice (ECJ) ruled against Malta’s so-called Golden Visa programme and ordered the Mediterranean country to end it as it violates European Law.
The ruling came after a complaint from the European Commission after Malta amended its citizenship law in 2020, allowing fast-track citizenship after fulfilling financial requirements and living in the country for 12 months. The requirements included owning a property worth €700,000, paying an annual rent of at least €16,000, making a substantial contribution to the Maltese government and donating to a non-governmental organisation. The law came immediately under fire from EU officials and anti-corruption organisations, as they claimed that it favoured white collar crimes and sanctions evasion.
The court contested the system that makes acquiring the citizenship “a mere financial transaction”, saying in a press release that “a Member State cannot grant its nationality — and indeed European citizenship — in exchange for predetermined payments or investments.”
The Maltese government accepted the ruling and said that it will now study its legal implications. The ECJ urged the country to drop the programme promptly before it can face an infringement procedure by the European Commission.
However, Malta defended the programme, saying it had brought €1.4 billion to the tiny country since a similar one started in 2015. The former prime minister who introduced the programme, Joseph Muscat, took it on Facebook to call the ruling “politically motivated” and added that it needed reformation, not cancellation.
Critics of the programme welcomed the ruling. Journalist Matthew Caruana Galizia said it was “a win for the people of Malta and for all EU residents who have been unfairly exposed to the whims of money launderers and corrupt criminals buying their way into the EU.”
NGO organisation Transparency International was also content with the ruling, with the organisation’s chief, Maira Martini, saying that “the ruling stops not only Malta from selling EU citizenship but will also prevent other member states from doing the same.”
