Acquiring Maltese citizenship will automatically grant applicants EU citizenship rights. Photo: Chris Sant Fournier

Selling citizenship to the wealthy is tantamount to the difference between “a prehistoric economy” and one that “looks ahead”, according to Prime Minister Joseph Muscat.

He defended plans to enable well-off foreigners from outside the EU to buy Maltese citizenship, insisting the island could not miss the opportunity.

“What we are proposing is being offered by other European countries such as Portugal, Spain, Austria, Bulgaria and, very soon, Latvia.

“We have to decide whether to wake up five years down the line realising we missed the bus or be at the forefront with this group of countries,” Dr Muscat said yesterday.

Addressing journalists after presiding over the launch of Vodafone’s 4G network, he played down the risk of selling citizenship to people with money of dubious provenance.

Dr Muscat insisted applicants would have to undergo a due diligence process.

While other countries associated citizenship with the level of investment a person made in the country, Malta would be asking for payment and not simply a transfer of investment, he said.

He reiterated the Government expected to generate about €30 million next year by enticing between 50 and 60 foreigners to buy Maltese citizenship.

The plans will form part of amendments to the Citizenship Act and will be administered by the new superagency Identity Malta, which will bring under one umbrella the ID card office, the Public Registry, the Citizenship Office and the processing of work permits for foreigners.

I do not anticipate any objections because this is an EU member state’s prerogative

The scheme will be known as the Individual Investor Programme for non-EU citizens.

Successful applicants must pay a fee of €650,000 that includes a non-refundable deposit of €10,000.

They must also pay €25,000 for their spouse to acquire citizenship and a further €25,000 for each child under 18.

Citizenship for unmarried children between the ages of 18 and 25 and dependent parents aged 55 and over will cost a further €50,000 each.

Successful applicants will be granted citizenship by a certificate of naturalisation to foreigners and their families who “contribute to the economic development of Malta”.

Dr Muscat said the scheme would raise important revenue that could be used for the economy to grow.

“We want to set up a national development fund where part of the income derived from this measure will be siphoned off for re-investment in projects,” he said.

Asked whether the scheme would raise eyebrows in Brussels – acquiring Maltese citizenship will automatically grant applicants EU citizenship rights – Dr Muscat said he anticipated no such problems.

“Just like the EU has no problem with other countries that do the same, I do not anticipate any objections because what we are doing is a member state’s prerogative,” he said, adding the country not only had to be courageous but also ambitious.

Dr Muscat reiterated the arguments when meeting a delegation of the Union Ħaddiema Magħqudin at his office in Castille, where he described the plan as “a value-added scheme”.

ksansone@timesofmalta.com