Malta’s Citizenship by Investment (CBI) scheme has recently faced scrutiny from the European Commission, which argues that applicants for such scheme lack a ‘genuine link’ to Malta. In this regard, the Commission initiated infringement proceedings against Malta before the Court of Justice of the European Union (CJEU), claiming that Malta’s citizenship by way of investment solution undermines the principles of sincere cooperation and EU citizenship, as found under Articles 20 and 4(3) of the Treaty on the Functioning of the European Union (TFEU).
In a significant recent development (on 4th October 2024) Advocate General Anthony Collins of the CJEU issued an opinion that could be pivotal for the future of Malta’s CBI scheme. Collins argued that that there is “no logical basis for the contention that because Member States are obliged to recognise nationality granted by other Member States, their nationality laws must contain a particular rule, let alone one that requires a ‘genuine link’ as a condition for possessing that nationality.” He further noted that the European Commission has failed to prove that Article 20 TFEU necessitates such a link in order for a Member State to lawfully grant citizenship.
Although the Advocate General’s opinion is not binding on the CJEU, it was a welcome development for the CBI industry and could signal a possible positive outcome for Malta. No definite date currently exists as to when a final decision shall be taken by the CJEU on the matter, but there is speculation that a final decision can be reached end of this year 2024 or early 2025.
If the CJEU follows Collins’ recommendation, this would uphold Malta’s right to continue its CBI scheme. As Malta awaits the final decision, the country remains steadfast in its belief that citizenship is and should remain a matter of national sovereignty.