Golden passports and silver linings : a comparative analysis of citizenship by investment programmes within the EU legal framework

Abstract

Citizenship is widely accepted as a fundamental human right across the international community. The fact that nations sometimes strip individuals of their otherwise available citizenship rights has generated extensive academic and judicial attention in recent years. Notable examples include countries revoking citizenship for undesirable persons, such as terrorists or other serious criminal actors. This dissertation considers the equally provocative but less understood issues surrounding the ways that states offer desirable individuals ‘citizenship by investment’ (CBI) and associated ‘golden passport’ rights. Since 2013, the Republic of Malta has emulated the approaches taken by other states (often developing world nations) to offer citizenship based on foreign individuals committing to making a significant personal investment in Malta. Austria is the only other European Union (EU) member that sanctions this pathway to citizenship (under much more restrictive terms than its Maltese counterpart). The current European Commission (EC) v Republic of Malta European Court of Justice (ECJ) proceedings have prompted renewed ‘golden passport’ attention. The EC argues that Malta’s citizenship program violates European treaty provisions because Maltese law permits the naturalisation of foreign individuals through financial investment without these people having a establish a genuine link to the country. Malta asserts that its programme is consistent with international law, namely the sovereign right of all states to control their borders and citizenship entitlements. Chapter 1 outlines how CBI programmes are typically structured, with their core principles and central objectives identified and explained. Chapter 2 provides an in-depth review of the current Maltese programme and its specific features. Comparisons are made here between the respective CBI regimes of Malta, Austria, and Türkiye (an adjacent non-EU state). Chapter 3 focuses on the proceedings and legality of EC v Malta. This analysis provides the basis for the Chapter 4 prediction: how Malta will successfully defend its CBI programme.