The Court of Justice of the European Union (CJEU) has set 29th April 2025 as the date for its long-awaited ruling in Case C-181/23, the infringement proceedings brought by the European Commission against the Republic of Malta over its Citizenship regulations.
This ruling will mark the culmination of a legal process that began in October 2020, with formal proceedings launched in March 2023. At the heart of the dispute is Malta’s Naturalisation for Exceptional Services by Direct Investment Regulations, a framework that allows up to 1,500 individuals (with a cap of 400 main applicants annually) to acquire Maltese citizenship through investment.
Background to the Case
The European Commission alleges that Malta is in breach of Article 20 and Article 4(3) of the Treaty on the Functioning of the European Union (TFEU). It claims that granting citizenship to individuals without a “genuine link” to the country undermines the integrity of EU citizenship. According to the Commission, citizenship should only be conferred upon individuals who have a real and meaningful connection to Malta.
Malta, in response, maintains that the decision to grant citizenship is a matter of national sovereignty. Moreover, Malta emphasises that its citizenship framework incorporates a mandatory residence requirement of either 36 or 12 months before submitting a citizenship application, mandatory requirement to establish connections with the Island, along with a rigorous due diligence process designed to ensure applicants are reputable and of good standing.
Advocate General’s Opinion
On the 4th of October 2024, Advocate General Collins issued his opinion on the case, recommending that the Court dismiss the Commission’s action and that the Commission bear its own costs and those of Malta.
Collins argued that the Commission had failed to demonstrate that EU law requires a “genuine link” for the acquisition of citizenship. He further underscored that, in line with established case-law, it is the exclusive competence of each Member State to determine the conditions under which its nationality may be granted or withdrawn. As such, citizenship decisions lie outside the scope of EU law, unless a Member State’s actions are clearly in violation of specific EU legal provisions.
Quoting from his opinion, Collins stated:
“Member States have decided that it is for each of them alone to determine who is entitled to be one of their nationals and, as a consequence, who is an EU citizen.”
While Advocate General opinions carry significant weight, they are not binding on the Court and the final decision rests solely with the CJEU
Judgement Date
The CJEU’s decision on 29 April 2025 is expected to bring legal clarity and a final decision by the Court of Justice on Malta’s citizenship by investment regulations.
Our Maltese Citizenship by Investment Services
We offer the following services in relationship to Malta Citizenship by Investment:
- advising you on your eligibility and your chances of success before filing your application;
- guiding you with the preparation and forwarding of the necessary documentation;
- vetting and preparing all supporting documentation for submission;
Applications for Maltese Citizenship by Investment are to be made to and processed wholly by Agenzija Komunita Malta. Dr Priscilla Mifsud Parker is a Licensed Agent, holding licence AKM-ACCA.
