Malta’s golden passport scheme rejected by EU top court

The EU's top court has ruled Malta's controversial golden passport scheme, which allowed foreigners to purchase citizenship for €690,000, unlawful, citing concerns over security and the commercialization of EU nationality.

Malta’s contentious golden passport scheme, which allowed foreign nationals to purchase EU citizenship for a minimum investment of €690,000, was declared unlawful by the EU's highest court on Tuesday, amid growing security concerns.

The European Commission had initiated legal action years ago, arguing that the scheme violated Malta’s obligation to cooperate sincerely with the EU. The program provided individuals the opportunity to acquire Maltese citizenship—and by extension, EU citizenship—without having any familial ties or residence in the country, enabling them to work across the EU.

The EU Court of Justice sided with the Commission, ruling that the scheme effectively commercialized the process of granting national and Union citizenship, which conflicts with the fundamental principles outlined in EU Treaties. The court also emphasized that payments or investments were central to the Maltese scheme and noted that actual residence was not a key requirement for granting nationality under this program.

As a result, the court determined that Malta failed to meet its obligations under EU law and ordered the country to cover the legal costs of the case.

This ruling contradicted the opinion of Advocate General Anthony Collins, who had suggested in a non-binding report last October that the scheme did not compromise the integrity of the EU. Collins argued that individual member states should have the sole authority to determine who is eligible for citizenship.

Malta’s golden passport scheme was the last remaining one within the EU after Cyprus ended its program in 2020 and Bulgaria followed suit in 2022. Other nations still operate “golden visa” schemes, which grant residence permits for investment, though these have also faced increasing scrutiny.

In 2023, Portugal scaled back its golden visa program, eliminating real estate investment requirements to curb speculation. The Netherlands halted its program in January 2024, and Spain has vowed to end golden visas tied to property investments.

These programs have raised serious concerns about security and money laundering, particularly since Russia’s invasion of Ukraine in 2022, as wealthy individuals may use them to bypass sanctions. In 2022, MEPs called for stricter regulations and a ban on citizenship by investment, deeming it unethical, illegal, and economically questionable.

The story will be updated with reactions from Malta.

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