Malta has responded to EU pressure over its controversial new passport scheme for non-EU nationals, announcing that applicants will now be required to spend at least a year in the country in order to qualify.

The new condition was announced by Malta in a joint statement with the European Commission.

Applicants will still have to invest at least 1.15 million euros ($1.57 million) in Malta to get a passport.

MEPs have condemned the Maltese scheme, saying it cheapens EU citizenship.

Earlier Malta had not set any residency requirement for rich foreigners wishing to get Maltese passports.

The new stipulation says “no certificate of naturalization will be issued unless the applicant provides proof that he/she has resided in Malta for a period of at least 12 months immediately preceding the day of issuing of the certificate of naturalization”.

Malta has changed its controversial new passport scheme for non-EU nationals

It followed talks between EU Commission officials and the Maltese government. EU Justice Commissioner Viviane Reding has said applicants should have “a genuine link to the country” – not just the ability to pay.

Malta, like most of the EU’s 28 countries, is in the Schengen zone, where citizens can mostly travel without passport checks. The EU single market has made it much easier for citizens to settle in another member state.

Owning an EU member state’s passport entitles the holder to EU citizenship, with all the rights guaranteed under EU law.

Malta’s scheme, called the Individual Investor Programme (IIP), was initially to be limited to 1,800 people – not including their close relatives, who could also buy passports, for a lower fee.

Malta is now considering raising that cap, so that more passports could be issued.

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