Golden passports watchdog angry at EU court for not appreciating Malta's scheme
Carmel de Gabriele writes critically of European court in foreward to annual report
A citizenship scheme’s watchdog has slammed the European Union’s top court for failing to “acknowledge and appreciate” Malta’s “incomparable” process of due diligence when vetting applicants under the now defunct citizenship-by-investment scheme.
In a foreword to the official watchdog’s 2024 annual report, regulator Carmel de Gabriele says the scheme required wealthy individuals to contribute to the country’s development to “balance off and compensate for their inadvertent inability to having been born in Malta”.
Last year, the Court of Justice of the European Union ruled that the previous investment scheme ran contrary to EU law by commercialising EU citizenship through pre-determined payments.
The government has since removed the fixed investment element of the scheme and instead rebranded it as a discretionary granting of citizenship to individuals who render exceptional services or contributions to Malta.
De Gabriele argued that the former scheme only granted citizenship to those who are “truly worthy of such nationality and not just because they have the financial means and resources to acquire it.”
He further assured that people are awarded citizenship “because they possess priceless qualities and pose no undue risk to our country and countrymen and likewise to our brothers and sisters in the EU.”
“Whatever has been said by the majority of detractors to such schemes as run by Malta, our country was by no means selling its citizenship to high net worth third country nationals but requiring them to contribute their share to our country’s national and social development so as to balance off and compensate for their inadvertent inability to having been born in Malta and raised as part of our community since birth along with other Malta- born and bred human beings,” the regulator said.
The regulator pointed to “significant upward trends” in the eligibility of applications under the scheme, prior to the court 2025 decision.
De Gabriele said had it been possible to accept applications from Russian nationals, this figure would have been much higher as Russians used to be “by far” the largest group of applicants coming from Europe. The regulator said during 2024, the number of applications from North America increased substantially, signalling trust and credibility in Malta’s citizenship scheme from North American applicants.
Property investments
The regulator’s report also delves into the value of property investments made by applicants under the former scheme.
Between 2015 and 2024, applicants spent €219 million on property purchases and a €132 million on property leases.
A further €236 million was pumped into stocks, bonds and other financial investments during the same time period.
The report further details how €1.1 billion in contributions were paid to the government agencies running the schemes since 2015, €620 million of which went into the National Development and Social Fund and further €400 million directly into the government coffers.
A total of €6 million in donations were given to charitable organisations by applicants. Cancer charity Puttinu Cares received €1.5 million while the Malta Community Chest Fund got €1.1 million.
Minimum donations of €10,000 were mandatory under the citizenship scheme.